CryptoAt the time of writing, Bitcoin is trading at $26,750 USD and Ethereum is at $1,860 USD. Last week, crypto prices continued to trade in their sideways range as they have for the past several weeks since the collapse of Silicon Valley Bank. The ranging price action and low volume is a symbol of short-term traders unsure of what direction the market is headed. However, this is also a reflection of a seasonal trend as the old "Sell in May" saying tends to be a common theme amongst traditional crypto investors as they prepare for summer vacations. Nevertheless, Bitcoin and the rest of the market are poised for a big move in either direction as the Weekly Bollinger Bands, a measure of volatility, has tightened up to a point that has not been seen since November 2022, when the market fell 22% in a week on the back of the FTX collapse.On-chain data provided by Coinglass is showing that about 43,200 BTC have been moved onto exchanges last week, with most of the influx going to Gemini over the course of Thursday and Friday. Although the short term influx of coins may create sell pressure over the near term, the 30 day change is showing about 10,200 coins have moved off-exchange, most of which came from Binance. This signals the continued trend of balances decreasing on exchanges, which is a sign of accumulation. This has been the story since March 2020 and should be noted that this is turning out to be the first Bitcoin Epoch where Bitcoin on exchanges has fallen throughout the entire cycle, moving from about 3 million coins on exchange in March 2020, down to about 2 million today. Perhaps this Epoch really is different.MacroFiscal risks will take center stage now that the debt ceiling has been raised. The Debt Ceiling has been the main risk in markets along with the Fed funds rate over the last couple of weeks. Now the focus will be on how the Treasury manages to replenish its reserves. Ideally, the funds raised by the US Treasury will come from the overnight Reverse Repo Market, which has been elevated since early 2021, with $2.14 Trillion parked at the Fed on Friday. Nevertheless, crypto should perform well in the wake of a successful debt ceiling deal as markets are expecting rate cuts later this year coupled with the Bitcoin halving right around the corner in 2024.A majority of the tokens in the top 200 traded in the green on Friday as the recovery by Bitcoin encouraged many traders to reenter the market. The overall cryptocurrency market cap stands at $1.147 trillion, with Bitcoin dominance at 45.9%.On Friday, The Bureau of Labour Statistics showed that Unemployment rose from a 53 year low of 3.4% to 3.7% versus the estimated 3.5%Non farm payrolls added 339,000 job versus the 190,000 Estimate. All eyes will now be on June 13th and 14th when CPI and The Fed Interest Rate decision are to be released.Equities, Fixed Income, FX and CommoditiesEquitiesLast week, US Equities had a short week due to the Memorial Day holiday, but finished strong with the Dow up 2% and the S&P up by 1.8%, most of which came from a strong rally on Thursday and Friday. The strong rally in equities coincided with the United States agreeing to terms that would raise the Debt Ceiling and avoid default, with the House passing the bill on Thursday and the Senate agreeing to the terms on Friday. Now that the debt limit has been raised, all eyes will be on spending and US liquidity as the Treasury looks to top of up their reserves, which got as low as $48.5 billion last week.Fixed Income, FX & CommoditiesLast week, most US treasury yields closed the week mildly lower but saw a slight rally on Friday when news of a US debt limit deal hit the wire. The market reaction is a testament to investors expecting the treasury to do an offering over the coming days and weeks ahead, demanding a higher rate of return on investment as inflation is still hovering around the 5%. Gold has yet to hold above the $2,000 point but will be worth keeping an eye on over the coming months ahead as US and Global liquidity is expected to continue to tighten. Crude Oil closed the week around the $74 mark as OPEC+ met to discuss production quotas over the weekend with Saudi Arabia announcing production cuts of 1m barrels per day. In FX, EUR/USD traded flat as inflation in Europe remains slightly elevated at 6.1% and unemployment is up around 6.5%.News we've been readingSEC Sues Binance and CEO Zhao for Breaking US Securities Rules: The SEC has accused Binance of mishandling customer funds as well as lying to regulators and investors about its operations in 13 charges filed Monday. The regulator said Binance had been mixing "billions of dollars" in customer funds and secretly sending them to a separate company controlled by CZ. -link -@BNNBloombergHong Kong legalises retail crypto trading: Hong Kong introduced a new regulatory regime for virtual assets on June 1, allowing retail investors to trade major digital tokens at licensed crypto exchanges. - link - @CentralBankingThree Reasons Behind Bitcoins Resurgence in 2023: Banking turmoil, Dedollarization, and a Development of a Layer 2 solution are a reminder of Bitcoins ability to successfully operate as an open source decentralised piece of technology - link - @BitcoinMagazineDigital Currency Group to shutter institutional trading unit TradeBlock: "Starting May 31, TradeBlock will commence the official procedure of winding down its operations." Regulatory uncertainty and the crypto winter are cited as two of the main reasons - link - @CoinTelegraphThe fine printClickherefor the fine print.
