Welcome to Wednesday’s Cipher Digest.

A newsletter that’s as good as a working AC in summer.

In todays Digest:

1. Solana Bullish? 🚀

2. Cipher Portfolio Updates 💼

3. Is $BNB Dead? 💀

4. ARK Buys $21.6M Coinbase Shares 💰

5. BTC Update ⚡️

6. China on their heels 🇨🇳

7. Tweets of the Day 🐦

Solana Bullish?

Many are looking to Solana, after reading the SEC’s complaints annnddd lets just say its an interesting response…

Cipher Portfolio Updates

Yesterday’s Trading Ideas, went exactly as per plan.

With the market now recalibrating, it’s interesting to us that we haven’t seen a faster crash and a more serious reaction to the SEC news.

Is this a sign that fundamentals won’t be as strong catalysts, as they have been in the past?

Is $BNB dead?

The chart above shows that, although $BNB has seen a huge shock with the SEC lawsuit, we are still holding support. (god knows how)

Many are saying that $BNB is the last token they would be holding, however, we believe the opposite….kind of

Instead, we will be looking to allocate a portion of our portfolios to increase our BNB holdings. We are playing this, while completely aware that this is a higher-risk bet.

Here are some of the basic reasons why I think this play is worth it:

1. Binance has been one of the only exchanges which have been very public about its holdings.

2. They are simply one of the largest exchanges in the world and have the backing of the entire crypto community

3. The SEC suing Coinbase, who has been co-operative, shows us that the SEC doesn’t appear to be playing a fair game.

4. We believe that Binance and Coinbase will likely come to agreements with the SEC

SEC Sues Coinbase

The lawsuit alleges that Coinbase's proposed lending product, called "Lend," qualifies as a security and should be registered with the SEC.

Coinbase had planned to allow users to earn interest on their cryptocurrency holdings through Lend, but the SEC argues that the product violates securities laws.

The lawsuit marks a significant legal challenge for Coinbase and raises questions about the regulatory framework surrounding crypto lending services. It highlights the ongoing regulatory scrutiny faced by exchanges and their efforts to navigate compliance with securities laws.

Coinbase came with an AMAZING response on Twitter, highlighting how Fugazi this situation really is:

Cathie Wood's ARK Buys $21.6M Coinbase Shares as SEC Suit Sends COIN Prices Tumbling

Cathie Wood's investment firm, ARK Invest, has purchased $21.6 million worth of Coinbase shares amid a drop in the price of cryptocurrencies caused by a lawsuit filed by the SEC.

Coinbase (COIN) is down 15% in premarket trading after the SEC sued the exchange, alleging multiple securities law violations It is now trading below $50.00.

Does Cathie know something we dont? (Im sceptical since ARK hasn’t made investors money or …..done anything good yet)

BTC Update

The 1% market depth of BTC, representing the available buy and sell orders within a certain price range, has shown a significant recovery on leading exchanges such as Coinbase, Binance, and Binance.US.

This recovery comes after a notable decline that occurred when the market depth was slashed by 50% following the recent announcements.

The revival of BTCs market depth on these platforms represents a positive development for the crypto space. It highlights the resilience of BTC and the broader market, underscoring the ability to overcome significant fluctuations and regain stability.

This recovery not only instils confidence in existing market participants but also attracts new investors who seek opportunities in the ever-evolving world of digital assets.

BTC has been going along as we anticipated in yesterdays newsletter: First a move up to flush out the longs and create hopium, then a fast flush down.

Members in the Discord made the most of these moves 🔥🔥

In the short term, we now look down to the bottom support of the larger bull flag as shown in the image below. This would take us down to ~$25k.

For a more detailed breakdown head over to the Discord!

Traditional Finance

China's exports took a significant hit in May, falling even more than expected. The numbers showed a steep decline of 7.5%, amounting to $283.5 billion.

This unexpected drop in exports signals a challenging economic environment for China, known as the world's largest exporter. 

Several factors could be attributed to this decline, including disruptions in global supply chains, weakened demand in key markets, and ongoing trade tensions with other countries. The sharp decrease in exports has serious implications for China's economic growth and overall trade balance.

Moreover, this downturn may prompt Chinese policymakers to consider implementing measures to stimulate domestic consumption and diversify their economy, reducing its heavy reliance on exports.

Turning our attention to the stock market, things seem to be holding steady at the beginning of the trading day. The resilience of the market, particularly NASDAQ, in avoiding a decline is viewed as a positive sign.

While a market correction is often anticipated after a significant upward trajectory, it's evident that this market is displaying a unique and independent behaviour.

As we approach the Federal Reserve policy meeting scheduled for June 14th, there are relatively limited economic data available, making it a matter of great interest for the market at large.

Tweets of the Day 🐦