Daily Market Update: June 1, 2023

June 1, 2023

BTC is currently trading around $26,900 and ETH around $1,850. Notable gainers in the last 24 hours are XDC, PEPE, and SAND. The global crypto market cap is ~$1.18T, down ~0.5% over the last day. DeFi Total Value Locked is ~$47b and BTC dominance is around 48%.

Market volatility is muted so far this morning across equities and crypto. Risks of a U.S. default have mostly diminished after debt ceiling legislation was passed in the House yesterday evening. The odds of a hike at the June Fed meeting decreased substantially after Governor Philip Jefferson – a vice chair nominee that often resembles Powell’s tone – signaled an upcoming pause to provide time to determine if more hikes were necessary. Markets currently expect a 65% chance of a pause and a 35% chance of a hike. ADP jobs data came in hotter than expected again this morning, and a strong nonfarm payrolls release on Friday may help shift expectations back toward a hike.

Notable news includes: Eurozone core CPI eased more than expected, falling to 5.3%; European Union Officials have formally signed MiCA into law after receiving final approvals from finance ministers; investment bank Cowen closed its cryptocurrency unit but the leaked email hinted the crypto unit may stick together “in a different home” outside of Cowen; Japanese banks can issue stablecoins now that the Payment Services Act has gone into effect; Huobi became the first member of Hong Kong’s Virtual Assets Consortium; Binance denied its cutting ~20% of its staff and stated there isn’t targeted number of cuts and the outcome will stem from its talent density audits; Sotheby’s is set to auction more NFTs from 3AC’s prized Starry Night collection in what’s expected to be the largest live auction of digital art; Germany’s Deutsche Telekom is set to become a Polygon validator; crypto.com gained a license to operate in Singapore; Fantom began paying developers for gas fees generated by their app’s users; a study commissioned by lawmakers at the European Parliament argued crypto should be treated as securities by default; StepStone VC raised nearly $100m for two blockchain funds; and, an olive oil producer issued the first euro-stablecoin-denominated bond on Obligate’s DeFi platform.

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Matt Kunke, Research Analyst | TwitterTelegramLinkedIn
Brian Rudick, Senior Strategist | TwitterTelegramLinkedIn

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