-1.png)
Markets Insights
Economic Calendar
ETF Dashboard
The News Room
MetaMask Introduces Pooled Staking for Ethereum, Excluding US and UK
MetaMask has introduced a pooled staking service, allowing users to stake any amount of ether with validators operated by Consensys. However, this service is initially unavailable in the UK and U.S. MetaMask users can unstake their ether at any time, but the process is subject to waiting times. The pooled staking service will be rolled out in phases, with the aim of making native Ethereum validator staking accessible to more users. It is also underpinned by over 33,000 hosted Ethereum validators. Additionally, MetaMask has announced its intention to support Bitcoin and has integrated with Daylight for airdrops and potential NFT claims.
Bitcoin ETFs Experience $200M Net Outflows Amid Fed and CPI Concerns
The U.S.-listed spot bitcoin exchange-traded funds (ETFs) experienced $200 million in net outflows on Tuesday, the highest since May 1. This was primarily driven by Grayscale's GBTC, which has seen a cumulative $18 billion in outflows since going live in January. The outflows are attributed to traders derisking ahead of key macroeconomic reports and the two-day Federal Open Market Committee (FOMC) meeting. Despite short-term challenges, some traders maintain a long-term bullish view and see this as an opportunity to accumulate coin.
Key Factors to Monitor as BTC Faces Declines Ahead of U.S. CPI and Fed Meeting
Leading up to crucial events that could impact Fed rate cut expectations, Bitcoin has faced selling pressure. The U.S. consumer price index report and the Federal Reserve's meeting are anticipated to be market-moving events. The report is expected to influence the dollar index and Bitcoin, with the potential for a make-or-break impact on Wednesday. A status quo rate decision is anticipated, and the focus will be on the inflation trajectory and the Federal Reserve's messaging. A hotter-than-expected CPI could shock risk assets, while a status quo rate decision is likely a foregone conclusion.
Trading Desk Insights
Bitcoin rebounded off the 50-day moving average yesterday around 66,200. This morning, prices jumped by 2% after CPI came out below estimates, indicating that inflation is coming down faster than expected. The year-over-year figure reached 3.3%, below estimates of 3.4% while month-over-month figure was flat at 0%, better than forecasts of 0.1%.
In the realm of US Bitcoin ETFs, the market saw a significant uptick in outflows, tripling to $200.4 million day-over-day, primarily driven by Grayscale’s $121 million outflow.
In other developments, former President Donald Trump has expressed his support for Bitcoin miners, stating he will advocate for them if he returns to the White House. Trump's ambition is to mine all the remaining BTC in the U.S, which aligns with his pro-business policies and could profoundly influence the regulatory landscape for cryptocurrency mining. His backing arrives at a critical moment when the crypto industry is under heightened regulatory scrutiny, potentially leading to more favorable conditions for miners and fostering growth and innovation in the sector.
Bitwise projects that the convergence of AI and crypto could contribute an additional $20 trillion to the global economy by 2030. They note that Bitcoin miners possess all the necessary resources for AI firms. Beyond mining, crypto and AI have the potential to intersect in areas like information validation and virtual assistants.
Stock futures climbed on Wednesday following lower-than-expected consumer inflation data for May. Investors are now keenly awaiting the conclusion of the Fed’s two-day policy meeting, which will include a rate policy decision and a press conference with Fed Chair Jerome Powell. The market is eager for updates to the Fed's Summary of Economic Projections, which could shed light on the policy trajectory. Concerns have been rising among investors that the strong jobs report and persistent inflation may support a prolonged higher interest rate environment.
Meanwhile, GameStop capitalized on a renewed meme rally, driven by the return of trader Roaring Kitty, to raise over $2 billion in a recent stock sale.
Crypto Charts
Macro Charts
Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.
Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
Contact Us
Sign up to receive more exclusive market coverage:
Start trading with Secure Digital Markets today by e-mailing:
trading@securedigitalmarkets.com