July 11, 2024

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MicroStrategy Announces 10-for-1 Stock Split Effective August 1

MicroStrategy announced a 10-for-1 stock split effective August 1, to be executed via a stock dividend. Each holder of class A and B common stock will receive nine additional shares. The stock will trade on a split-adjusted basis starting August 8. This move aims to enhance share accessibility and liquidity. The company’s stock has risen 6.4% in pre-market trading and 89% year-to-date. Additionally, MicroStrategy recently acquired 11,931 BTC for $786 million, bringing its total holdings to 226,331 BTC, valued at $13.4 billion.

Australia to Receive Second Spot Bitcoin ETF on ASX

DigitalX, a Perth-based crypto fund manager, has received regulatory approval to list its spot Bitcoin ETF (BTXX) on the Australian Securities Exchange (ASX) this week, making it the second such product after VanEck's listing on June 20. The ETF will provide direct access to Bitcoin via a regulated fund structure, with trading set to commence on Thursday at 8:00 pm ET. Unlike VanEck's ETF, which is influenced by U.S. politics, DigitalX's BTXX is only subject to Australian regulations. This listing follows previous attempts and products, including the Global X 21Shares' Bitcoin ETF and the recently listed Monochrome Asset Management's IBTC.

Celer Network Issues Warning of Potential DNS Hijacking Attack on Multiple Crypto Websites

Celer Network has warned of a potential DNS hijacking attack affecting multiple projects, advising users to avoid its websites Celer.network and cbridge.celer.network. This follows signs of hijacking on Compound Finance's website. Security analyst samczsun noted that several crypto project domains registered via Squarespace have been hijacked, recommending a transfer to platforms like Cloudflare or AWS. Notable domains at risk include Pendle, Karak, Hyperliquid, and Thorchain. Previous DNS attacks on Celer and other projects like Curve and Balancer have aimed to lure users into compromised smart contracts. No funds have been reported lost in the current incident.

Trading Desk Insights

Bitcoin experienced a notable uptick following the release of favorable CPI data, with inflation rates dropping to their lowest in over three years this June. The CPI YoY registered at 3%, surpassing the expected 3.1%, while core CPI YoY fell to 3.3%, below the forecasted 3.4%. This positive inflation report strengthens the argument for a potential rate cut by the Federal Reserve later this year. According to the CME FedWatch tool, the probability of a September rate cut has surged to 85%, with another possible cut in December, contingent on continued favorable inflation data.

In the realm of US BTC ETFs, the market has seen significant momentum, with inflows reaching $147.4 million. This brings the week-to-date inflows to over $650 million.

The staking of ETH remains robust, nearing its peak with 33.3 million ETH staked, representing 27.7% of the total supply. Additionally, around 12% of ETH’s supply is tied up in smart contracts or blockchain bridges, resulting in approximately 40% of ETH being locked and unavailable for active trading. Considering ETH’s spot trading volume has ranged between 80%-90% of BTC’s in recent weeks, the anticipated launch of ETH spot ETFs in July is likely to attract substantial institutional interest.

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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.

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