May 28, 2024

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Mt. Gox Moves $2.9 Billion in Bitcoin for First Time in Five Years

Mt. Gox has moved at least 42,830 BTC, worth about $2.9 billion, to an unknown address, marking the first asset transfer from its wallets in five years. By 2:30 a.m. ET, additional transactions had increased this to at least $9.6 billion worth of Bitcoin. This defunct Bitcoin exchange, which collapsed in 2014, still holds about $9.42 billion in bitcoin. The trustee recently extended the repayment deadline to October 31, 2024. Mt. Gox, once the largest Bitcoin exchange, filed for bankruptcy in 2014 after losing over 800,000 bitcoins. The trustee did not respond to requests for comment.

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Trump Vows to Pardon Silk Road Founder Ross Ulbricht If Re-Elected

Former President Donald Trump’s appearance at the Libertarian National Convention, despite being met with jeers, boosted political meme coins significantly. The MAGA Hat (MAGA) cryptocurrency surged over 150%, while the MAGA (TRUMP) meme coin rose by 12.7%. Additionally, the ConstitutionDAO (PEOPLE) token, now a meme coin, increased by 4.7%. Trump pledged to commute Silk Road founder Ross Ulbricht's sentence if re-elected, reiterating a previous consideration from 2020. He also positioned himself as pro-crypto, vowing to end Biden’s alleged anti-crypto stance and to oppose a U.S. central bank digital currency (CBDC).

Popular Dog Kabosu, Face of Dogecoin and Meme Tokens, Dies

Kabosu, the Shiba Inu that inspired Dogecoin, passed away this morning at an estimated age of 18, as confirmed by its owner. Following the news, Dogecoin experienced two brief price spikes. The first spike occurred around 1:40 a.m. ET when the dog's death was announced, and the second spike happened around 11 a.m. ET after Elon Musk tweeted about Kabosu's passing, mentioning the dog alongside the meme gorilla Harambe. Dogecoin's price rose 3.8% in the past 24 hours, with $2.8 billion worth of DOGE traded. Related tokens like Shiba Inu and FLOKI also saw brief increases.

Argentina Seeks Insights from El Salvador's Bitcoin Success

Argentina's government is collaborating with El Salvador to learn from its Bitcoin adoption experience and broader cryptocurrency activities. Argentina’s National Securities Commission (CNV) met with El Salvador’s National Commission of Digital Assets (CNAD) to discuss crypto adoption and regulation. El Salvador, the first country to adopt Bitcoin as legal tender in September 2021, shared its insights with Argentina. CNV president Roberto Silva emphasized El Salvador's leadership in Bitcoin and cryptocurrency regulation. Argentina is keen to strengthen ties and explore collaboration agreements with El Salvador. This move aligns with Argentina's efforts to regulate its cryptocurrency market, which includes new registration requirements for crypto firms and potential legalization of Bitcoin for payments under certain conditions.

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Trading Desk Insights

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Bitcoin is experiencing some pressure this morning as the stock market pulls back at the open. Currently, BTC is trading between the resistance level of 71,500 and our support level of 65,000. We anticipate that prices could decline further towards 66,500, presenting a strong entry point for a long position.

In the US BTC ETF market, there was a robust inflow of $252 million on Friday, contributing to a total of $2 billion in inflows over the last ten trading sessions.

Significant movements were observed as over 140,000 BTC, valued at approximately $9 billion, were transferred from Mt. Gox wallets to an unknown address in thirteen transactions. This might be part of a plan to repay creditors by October 31, 2024. The market reacted bearishly, with Bitcoin falling to a low of $67,500 after reaching a high of over $70,700 on Monday.

Meme coins are performing well today as GameStop shares surged 26% in premarket trading following a $933 million stock sale. Historically, GameStop stock rallies have often preceded rises in crypto meme coins. FLOKI, WIF, DOGE, and BONK are all outperforming the market this morning. Additionally, two ETH ecosystem tokens, PEPE and MOG, hit new highs after the approval of U.S. ETH ETF filings, with traders viewing these tokens as high-beta bets in light of the news.

In other developments, Solana validators will now receive 100% of priority fees from transactions following a governance vote aimed at enhancing network security and efficiency. Previously, priority fees were split between burning and rewarding validators, which led to side deals with transaction submitters.

Stock futures showed slight movement on Tuesday morning as investors await inflation data expected at the end of this shortened trading week for a clearer market outlook. Stocks are on track to end May on a strong note, buoyed by softer inflation data earlier in the month and better-than-expected quarterly earnings reports. Minneapolis Federal Reserve President Neel Kashkari stated on Tuesday that he wants to see “many more months” of data indicating easing inflation before considering rate cuts and did not rule out further rate hikes if price pressures increase again.

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Disclaimer

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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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