Daily Market Update: June 3, 2024

June 3, 2024

BTC is currently trading around $69,900 and ETH around $3,850.  Notable gainers in the last 24 hours are FLOKI, NOT, and ENA. The global crypto market cap is $2.74T, up 2.3% over the last day.  DeFi Total Value Locked is ~$108b and BTC dominance is around 55%.

Equities are little changed and bond yields are down small as investors await key macroeconomic items later this week.  Specifically, the ECB meets on Thursday, where it is widely expected to cut interest rates for the first time since 2019 and where market participants will closely watch for clues on the size and pace of future cuts.  In addition, voters will head to the polls starting on Friday for the European Parliament elections, where right-wing and populist parties are expected to gain significant ground.  Lastly, the US employment report will be released on Friday, and will offer clues regarding the strength of the economy and wage growth.

In crypto, the major news was US President Biden’s veto of a measure that would have overturned SAB 123, the SEC’s controversial crypto custody policy.  Biden had promised to veto the measure before the House passed it with bipartisan support and prior to crypto becoming more influential in the election, so some held out hope Biden would change his mind.  While that didn’t happen, he did express a desire to work with Congress to develop digital asset legislation.

Notable news includes: El Salvador’s pro-Bitcoin President Bukele was sworn in for a second term; Dubai updated its crypto regulations; Qatar’s central bank announced it completed the development of its CBDC infrastructure; Japanese crypto exchange DMM suffered an “unauthorized leak” of over $300m; Franklin Templeton disclosed its proposed spot Ethereum ETF fee of 19 bps; layer 2 Linea halted block production and censored a hacker’s address after Linea-based DEX Velocore suffered an exploit; Uniswap postponed the vote over its fee switch; Ethena’s synthetic dollar USDe crossed $3b in supply; Matter Labs removed its “zero knowledge” trademark applications after facing backlash; Binance founder CZ began his four-month prison sentence; and, the GME memecoin spiked 300% after Roaring Kitty posted a picture on Reddit of his account showing a $116m position.

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Brian Rudick, Senior Strategist | TwitterTelegramLinkedIn

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