CryptoAt the time of writing, Bitcoin is trading at $25,000 USD and Ethereum at $1,640 USD. Since we last wrote, Bitcoin has fallen slightly below its 200 week moving average, but we have yet to see the volatility outbreak that markets have been anticipating on the weekly time frame. Investors will want to see support in the $24,000 to $25,000 range if we want to see more upwards price movement.Sentiment in the market has taken a bit of a blow in recent weeks since the SEC announced lawsuits against Binance and Coinbase claiming that each exchange has been offering unregistered securities among other accusations aimed more towards Binance. Those accusations include the potential mishandling of client funds and lying to regulators. Despite bearing similarities to the FTX crisis, the resilience displayed by Bitcoin and ETH in comparison to other cryptocurrencies indicates a positive outlook for the two leading digital assets. Some exchanges like Robinhood have reacted to the announcement and have said that they will discontinue support for some coins mentioned in the Binance/Coinbase lawsuits such as ADA, SOL, and MATIC. It will be interesting to see how hedge funds and larger pools of capital further react to the news. Investors might expect decreased volume and support for the targeted Altcoins as market makers and exchanges take a step back and wait for the case to play out. While the market waits, we may see a rotation into BTC, ETH, and Stablecoins until the dust settles.On chain data this week by Glassnode is showing that the amount of Bitcoin held by the 1+, 3+, and 5+ year cohorts is continuing to make all time highs. The last time such event occurred was in 2020, before the bull run, which lasted for about a year. These types of metrics are what add to the scarcity of Bitcoin and continued hodling should be expected from investors who want to see price appreciation.MacroYesterday, the Federal Reserve decided pause interest rate hikes for the first time in 15 months. This came after CPI on Tuesday which showed that US headline inflation improved to 4 percent while core inflation came in at 5.3 percent. The Federal Reserve decided that the cooling inflation numbers justified a pause. In the press conference following the rate decision, Jerome Powell cited pressure on the residential and commercial real estate markets as another reason to wait on further increases, although he did not rule out more hikes later this year. Commercial real estate, particularly office buildings, have been a key area of interest for investors as the labour force has continued to work from home. At this time, all eyes are on the July interest rate decision, which will be highly dependent on June CPI numbers.The European Central Bank (ECB) raised rates by 25 basis points this morning. This was the eighth consecutive time, which brings Euro zone rates to a 22 year high of 3.5%. Inflation remains high in the Europe hovering at 6.1 percent, a long way from the ECBs long term target of 2 percent.While most central banks are increasing rates to control inflation, China's central bank is easing financial conditions to help its economy. China recently asked commercial banks to cut deposit rates to incentivise consumer spending and to help bolster it's real estate market. The countries commercial banks responded by cutting deposit rates down to 0.2% from 0.25% last week.Equities, Fixed Income, FX and CommoditiesEquitiesThe S&P and Nasdaq have continued to make year to date highs while the Dow Jones is trying to crack the 34,000 level. Tech and AI stocks have carried most of the gains this year while the rest of the market is has lagged behind. The bifurcation in the market is something that investors have become used to with the FAANG stocks leading the market during bull runs. A notable market mover has been Tesla, which is up nearly 25% month to date with Ford and GM announcing plans to use Tesla charging stations.Fixed Income, FX & CommoditiesTreasury yields traded relatively flat for the last 2 weeks as the FED decided to wait on more rate hikes. It's yet to be seen what will transpire for the rest of the 2023 as J Powell reiterated his hawkish tone by saying that he doesn't foresee rates coming down for a couple of years. In FX, the Euro continued it's climb vs the dollar while CAD/USD did the same. In Commodities, Gold, Silver, and Oil continued their sideways price action with little reaction to the rate hike decision.News we've been readingFed leaves rates unchanged, sees two small hikes by end of 2023: The Fed paused interest rate hikes for the first time in 15 months, but left the door open for more hikes later this year. Stocks fell on the initial decision but later climbed to recoup losses and closed the day slightly higher - link - @ReutersUnder Pressure: The SEC Charges Binance and Coinbase: The US regulatory environment continues hostilities this week with the SEC charging Binance and Coinbase for offering unregistered securities. This led to net outflows of Bitcoin on Binance while Coinbase reserves remained relatively flat - link - @GlassnodeCrypto.com to suspend US institutional exchange: The exchange cited limited demand from institutions as the main reason for shutting down the desk but said that it would reopen in the future if there is demand -link - @BlockworksCelsius seeks to convert alts to Bitcoin and Ether under reorganization plan: Celsius will begin converting all altcoins from customers, with the exception of "Custody and Withhold accounts," beginning July 1st. - link - @coindeskBlackRock Close to Filing for Bitcoin ETF Application: Source: A US spot ETF for Bitcoin has yet to be approved, but BlackRock is eyeing an application -link -@CoindeskThe fine printClickherefor the fine print.
