You are about to leave the website of SDM Inc. ("SDM") and will be redirected to the website of SDM Financial Inc. ("SDM Financial"), a US affiliate of SDM providing crypto derivatives trading services.
Please be aware that SDM Financial's services are not intended for, and should not be used by, residents of Canada.
By clicking on the link to SDM Financial's website, you acknowledge and agree that: You are not a Canadian resident.
SDM Financial is not registered with any regulatory authority in Canada and is strictly prohibited from entering, or otherwise engaging in, any transactions with Canadian residents.
Non-Canadian residents who deal with SDM Financial do so at their own risk, and SDM will not be held liable for any losses or damages incurred as a result.
By clicking 'I Accept' below, you confirm that you have read, understand, and agree to the above . If you do not agree, please select 'I Decline' and you will be redirected back to SDM's website.
HSBC China Launches e-CNY Services for Corporate Clients
HSBC Bank's China branch has become the first foreign bank in the country to offer digital yuan (e-CNY) services to both retail and corporate clients. Corporate customers can now link their bank accounts with digital yuan accounts to manage their assets. The bank has facilitated e-CNY payments for an educational group across six branches in major cities. The digital yuan, issued by the People’s Bank of China, aims to replace some cash in circulation. Despite its expansion, many users remain hesitant due to functional and privacy concerns. Hong Kong recently allowed residents to set up personal e-CNY wallets for cross-border payments.
South Korea to Classify Certain NFTs as Regular Crypto Assets
South Korea's Financial Services Commission (FSC) has released new guidelines to regulate non-fungible tokens (NFTs), classifying mass-produced, exchangeable NFTs as cryptocurrencies. The FSC will assess NFTs on a case-by-case basis, considering factors like transferability and economic value. The guidelines precede the Virtual Asset User Protection Act, effective from July 19, aimed at eradicating illicit activities and ensuring crypto service providers protect user funds. The FSC may also classify NFTs as financial securities if they meet criteria in the Capital Markets Act. This is part of South Korea's broader effort to regulate the crypto industry.
European Central Bank Cuts Rates, Raising Questions for the Fed and Bitcoin Markets
The European Central Bank (ECB) recently reduced its key interest rates by 25 basis points, marking its first rate cut in nearly five years, a move that has sparked speculation among crypto enthusiasts about potential positive impacts on Bitcoin's price, especially amid expectations of a similar action from the United States Federal Reserve, as part of a broader global central bank trend towards easing monetary policies in response to improving inflation outlooks post-Covid-19.
Trading Desk Insights
The week concluded with a subdued performance in the market, as BTC dipped by 5% on Friday. This decline coincided with the liquidation of long positions valued at over $300 million, spurred by the release of robust nonfarm payroll data. Moving forward, the market's attention turns to significant macroeconomic indicators such as the Consumer Price Index (CPI) and the Federal Reserve's interest rate decision on Wednesday, along with the Producer Price Index (PPI) scheduled for Thursday. Presently, market sentiment leans towards no rate cuts in the summer, with the likelihood of the first cut in either September or November estimated at 47%.
In the realm of U.S. BTC ETFs, there was another round of substantial inflows on Friday amounting to $131 million. This follows a robust week of ETF inflows totaling $1.83 billion.
U.S. stock futures saw a modest decline on Monday following a positive performance last week, with traders awaiting the Federal Reserve's interest rate decision and May's inflation data. Wednesday's events, featuring the Fed's rate announcement and May's CPI figures, stand as pivotal moments for market dynamics, particularly in light of the recent strong jobs report suggesting a potential delay in rate cuts by the central bank. The recent rate cuts by the European Central Bank and the Bank of Canada have set a precedent, initiating what is colloquially termed as an "easing cycle" among the Group of Seven (G7) nations.
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:
.png)
.png)
.jpeg)
