Even with the ETFs approved, market is volatile while ZK is being trademarked.
Trump convicted while Biden flips his crypto stance.
Q1 US GDP growth downgraded. Inflation revised downwards.
Everyone planning to sell at $10k and lower TF bullish af 👇🧵
Macro Pulse Update 01.06.2024, covering the following topics:
1️⃣ Macro events for the week
2️⃣ Bitcoin Buzz Indicator
3️⃣ Market overview
4️⃣ Key Economic Metrics
5️⃣ Japan Spotlight
1️⃣ Macro events for the week
Last week
Next Week
2️⃣ Bitcoin Buzz Indicator
Ethereum and ETF Developments
Spot Ethereum ETFs Poised for Launch
Controversy Over "Zero-Knowledge" Trademark Attempt
Do Kwon Settles SEC Fraud Charges
JENNER Token Controversy Highlights Celebrity Crypto Risks
Crypto Innovations and Market Dynamics
NYSE and Mastercard Embrace Crypto Innovations
CME Declines Solana Futures Amidst ETF Doubts
Crypto Exchanges and Recovery Efforts
Gemini Recovers $2.18 Billion for Earn Program Users
Japanese Exchange Loses $305 Million in Bitcoin to Hack
Flash Loan Attack Devastates Normie Coin
Significant Token Unlocks Scheduled for June
Legal and Regulatory Concerns
US Treasury Calls for Tighter NFT Regulations
Blockchain Gaming and NFT Collaborations
Pudgy Penguins Partners with Mythical Games for Mobile Launch
Ronaldo Teams Up with Binance for New NFT Collection
Square Enix Advances Blockchain Gaming with Arbitrum
Altcoins
The Arbitrum community approved a 200M ARB plan to attract Web3 game builders.
Ethereum Name Service planned a layer-2 migration to cut gas fees and increase speed.
Babylon Bitcoin Staking secured the largest investment in the Bitcoin ecosystem.
The Friend.tech token fell sharply as its co-founder considered leaving the base.
Taiko's layer 2 rollup launched on the mainnet, with Vitalik Buterin proposing the first block.
Floki developers aimed to enhance token fundamentals with a new trading bot.
Bots and airdrops boosted Ronin to the second most-used blockchain daily.
Nomura Holdings and GMO Group formed a stablecoin research partnership in Japan.
A Binance affiliate sold Genesis creditor claims at a steep discount.
Fantom partnered with Google Cloud for infrastructure and AI capabilities.
Ex-FTX exec Ryan Salame was sentenced to nearly 8 years and fined $11 million.
EU draft standards identified MEV as market abuse under upcoming MiCA rules.
Uniswap Foundation disclosed a $41M balance sheet before a crucial fee vote.
Ledger shipped the Stax hardware wallet after delays.
The Sandbox launched its DAO with a 25M Sand Treasury.
Solana Validators were set to receive 100% of priority fees after a governance proposal.
Hong Kong planned inspections of crypto platforms as a compliance deadline approached.
Aave announced the launch of a bespoke blockchain after its V4 upgrade.
Notcoin surged over 40% in one day, surpassing $1 billion market cap.
Maple Finance unveiled the Syrup Yield Platform and a rewards token.
Huobi's co-founder's firm recovered 108% of deposits from the FTX collapse.
KuCoin partnered with a multinational law firm to tackle DOJ and CFTC issues.
DWF Labs might have invested $5 million in LADYS.
Starknet launched a $25M token incentive for top projects.
TURBO memecoin, created by ChatGPT, soared 2,000% to a $638 million valuation in three months.
Solana's Meme Factory, Pump.Fun, added a livestreaming feature.
A US judge ordered the SEC to pay $1.75 million in the Debt Box case.
A 'Tickle-to-earn' Cat Game caused a massive spike in Aptos transactions.
Blocksquare hit $100M in tokenized RWA and announced a DeFi launchpad.
ZKasino gave users 72 hours to retrieve their Ether.
Ripple pledged $50 million to support crypto-friendly US politicians.
Crypto Bridge LayerZero connected to the Solana blockchain.
DeFi Data Firm API3 raised $4M in a funding round led by DWF Labs.
Sei Foundation announced a 27 million SEI token airdrop after a major upgrade.
Fetch.ai, SingularityNET, and Ocean Protocol set a date for their token merger.
Ethena Labs launched on the Blast L2 Network to integrate USDe and sUSDe with more Web3 protocols.
Tokenization platform Fortunafi raised funds at a $48 million valuation and unveiled the stablecoin protocol Reservoir.
Hidden Road halted client access to Bybit over anti-money laundering and KYC issues.
A16z boosted Crypto's Election Fund by another $25M to influence Congress.
Veda partnered with EtherFi to provide tokenized vault infrastructure.
Alex Labs rolled out a post-exploit recovery plan.
A survey revealed that 84% of US gamers haven’t tried blockchain games.
Chiliz's CHZ token's pre-UEFA Euro price surge revived FIFA memories.
Galxe announced the launch of its native Layer-1 blockchain, Gravity, in June.
Telegram Wallet enforced new KYC rules and switched providers.
Citi-backed crypto unicorn Talos acquired DeFi platform Skolem.
SEC Commissioner proposed a cross-border sandbox for the U.S. and U.K. crypto industries.
Arweave (AR) rallied after announcing its AO Network native token.
TON's market cap plunged by billions after correcting inflated supply data.
Circle expanded USDC's reach in Brazil through major partnerships.
Trial began for the $575 million HashFlare crypto mining fraud defendants.
Europol shut down a malware dropper ring linked to at least $75M in stolen crypto.
CertiK launched CertiK Ventures to support blockchain development.
EOS Network approved new tokenomics, promising a new era.
21.co debuted Wrapped Bitcoin on Solana, targeting $1 trillion in idle Bitcoin funds.
3️⃣ Market overview
Crypto Market
Trump and Biden Shift Stance on Crypto: In recent campaign events, Donald Trump has vowed to position the US as a leader in digital assets. In response, President Joe Biden’s team has engaged with key figures in the crypto industry, signaling a shift in the administration's approach towards digital currencies.
Ether's Price Volatility Amid ETF Approvals: Following the SEC’s approval of eight Ether ETFs last week, Ether’s price surged to nearly $4,000 before pulling back. Analysts predict that the anticipated inflows could reach 15-30% of Bitcoin ETF levels. However, Ether's price has remained relatively stable since the approval.
Former FTX Executive Sentenced: Ryan Salame, the former CEO of FTX Digital Markets, has been sentenced to seven-and-a-half years in prison and faces substantial financial penalties. This sentence stems from his involvement in illegal political contributions and running an unlicensed money transmitting business.
Argentina and El Salvador Discuss Crypto Adoption: Argentina's securities regulator recently met with El Salvador's digital assets commission to discuss cryptocurrency adoption strategies. Argentina aims to draw insights from El Salvador, the first country to recognize Bitcoin as legal tender, to advance its own crypto adoption plans.
US Economic Growth and Inflation
GDP Growth: The US economy expanded at an annualized rate of 1.3% in Q1, down from the previous estimate of 1.6% and significantly lower than the 3.4% growth seen in Q4 2023. This downgrade reflects weaker consumer spending and equipment investments.
Inflation: Inflation for Q1 was revised down to 3.3%, marking the highest quarterly increase in a year. Persistent price pressures could delay potential interest rate cuts by the Federal Reserve.
Labor Market: Despite the GDP downgrade, the labor market remains robust. Initial unemployment claims rose slightly to 219,000 but still indicate underlying strength. The soft economic start to the year is not expected to persist into Q2, partly due to continued job market resilience.
4️⃣ Key Economic Metrics
🔴 Increasing geopolitical and trade tensions between the U.S., Europe, and China, focusing on the imposition of significant tariffs by the U.S. on imports of Chinese electric vehicles and other products. The primary concerns are China's subsidized exports undermining Western clean energy manufacturing and the broader economic implications.
The U.S. imposed significant tariffs on Chinese electric vehicles and other products to counteract China's strategy of flooding Western markets with subsidized exports, which threatens the viability of domestic clean energy manufacturing sectors.
U.S. Treasury Secretary urged European countries to join the U.S. in restricting China's market influence emphasizing the strategic and united response needed to address the risks posed by China's economic policies to Western businesses.
Some countries support tariffs on China i.e. Export-reliant countries like Germany are cautious, fearing escalation of trade tensions and Chinese retaliation.
🔴 The Federal Reserve has committed to maintaining high interest rates for an extended period to weaken the economy and reduce inflation. While expressing uncertainty about the effectiveness of tight monetary policy, the committee members are prepared to tighten further if necessary.
Powell reluctant to raise rates again, indicating a likely steady rate for several months.
The policy trajectory will be influenced by labor force participation, immigration, and labor productivity, with an expectation of reduced wage inflation as labor market supply and demand converge.
5️⃣ Japan Spotlight🔴
In mid-2023, Japan faced its highest inflation in 40 years, but the Bank of Japan (BOJ) did not tighten monetary policy, attributing the inflation to supply-side factors. Inflation has since declined close to the BOJ’s 2% target.
Despite this, inflation remains relatively high compared to pre-pandemic levels, prompting the BOJ to begin tightening measures earlier this year. The yen’s depreciation, fueled by the interest rate gap between Japan and the U.S., adds further complexity to the BOJ's policy decisions.
Inflation Data: April 2024 consumer prices increased by 2.5% year-over-year, showing a slight decrease from 2.6% in March, with core-core inflation (excluding fresh foods and energy) falling to 2.4% in April from 2.9% in March, indicating easing inflationary pressures.
Category-Specific Inflation: Food prices saw the highest increase at 4.3%, while other categories such as clothing (2.2%), transportation (2.7%), and healthcare (1.2%) also experienced notable rises. Energy costs declined but at the slowest rate in 14 months due to the gradual phase-out of energy subsidies.
BOJ Policy Actions: In March 2024, the BOJ ended its negative short-term interest rates and yield curve control policies, resulting in the 10-year government bond yield reaching 1%, its highest level in eleven years. Despite these changes, the yen continues to depreciate, largely due to expectations of sustained restrictive policies by the U.S. Federal Reserve.
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