The Cipher Digest is like that feeling you get putting on a warm pair of socks on a winter’s day. Arguably better.

Let’s get those toes warm…

In Todays Digest:

1. Latest In Web3 🚨

2. Tuesday Technicals 📈

3. Tuesdays Trading Ideas 💸

4. What's driving the latest BTC Rally? 📊

5. TradFi Update 📰

6. Tweet of the Day🐦

Latest In Web3 🚨

• HSBC enables BTC and ETH ETF investment for customers in Hong Kong

• Indonesia labels 501 cryptos as commodities 

• Japan softens tax stance on crypto

• Near Foundation partners with Alibaba Cloud

• FTX's current management has recovered $7 billion in liquid assets

• Allegedly, Fidelity Spot Is Preparing to Apply for Bitcoin ETF!

Tuesday Technicals 📈

After a 3-day losing streak, BTC rebounded hard today, ahead of the upcoming consumer confidence report in the United States.

Price briefly fell below the $30,000 this morning, however bullish momentum has since returned. ETH also rose above $1,900 for a short period.

Bitcoin

BTC rebounded from recent losses today, ahead of the upcoming U.S. consumer confidence report. The Conference Board expects its index to rise to a reading of 104.0 in June, up from 102.3 last month.

What does this mean?

1. >100 indicates that consumers are more optimistic versus the benchmark.

2. = 100 indicates that consumers are neutral versus the benchmark.

3. <100 indicates that consumers are more pessimistic versus the benchmark.

BTC rose to a daily high of $30,751.19, following a low at $29,955.74 to start the week. The move appears to have occurred as the 14-day relative strength index (RSI) bounced from a support point at 68.00.

We can also see that BTC has broken out of the recent downtrend line which has formed in the last few days.

The next key we will be looking at will be the most recent highs of $31k and $31.44k.

Ethereum

ETH briefly rose above $1,900 today, after falling towards a support level of $1,830 on Monday.

Momentum has since shifted, with the world’s 2nd-largest crypto once again falling below the $1,900 level. At the time of writing, ETH is trading at $1,881, with the RSI marginally below a resistance level of 58.00.

Overall, momentum is bullish, following a recent crossover between the 10-day (red) moving average, and its 25-day (blue) counterpart.

Should this cross mature, there is a good chance that ETH will not only move above $1,900 but closer to $2,000.

Tuesdays Trading Ideas 💸

Both of today’s Digest trades are LONGs. I know, we are optimistic. For the full market breakdowns and to ask any further questions make sure you jump into Discord!

MANA Trade Details 💸

• 🎯 Entry - 0.3877

• 🏁 DCA - 0.3811

• 🛑 SL - 0.3753

ETC Trade Details 💸

• 🎯 Entry - 17.930

• 🏁 DCA - Down to 17.550

• 🛑 SL - 17.225

What's driving the latest BTC Rally? 📊

Let's dive into the data 👀

1. Open interest recently hit its highest level since January, suggesting rising inflows and speculation.

What is Open Interest you ask? Don’t worry, I gotchu

Open interest in crypto refers to the total number of active contracts or agreements to buy or sell a particular cryptocurrency in the future.

It's like the popularity gauge of a party, showing how many people are interested in trading that crypto.

The higher the open interest, the more potential there is for price volatility and market excitement. It's a way to measure the level of activity and anticipation in the crypto market.

2. Despite the above, the rally doesn’t seem to be decisively spot or derivatives-led when looking at volumes. The spot-to-futures volume ratio has been mostly flat since April.

Neither of them is taking a clear lead in driving the rally.

So what does this mean?

Well, it suggests that the rally is not heavily dependent on one specific market. The party is rocking, but it's not dominated by either the spot market or the derivatives market. It's like a balanced mix of both, keeping things interesting and ensuring that the rally isn't solely driven by one particular trading avenue.

In a nutshell, the volumes tell us that the crypto rally is a joint effort

3. In spot markets, we noticed that the ratio of Binance to Coinbase. BTC volume has fallen significantly since the SEC lawsuit. Coinbase could be leading spot market movements since the start of June.

4. Perhaps the most compelling data is the ratio of BTC to altcoin volumes on U.S. exchanges, which is now nearly 50%. On offshore exchanges, the ratio is just 33%.

Shoutout to Kaiko, for the charts!

TradFi Update 📰

Party time in the European Union (EU) as they've just sealed the deal on new bank-capital legislation, and guess what? It includes regulations for crypto assets! The goal here is to make sure that unbacked crypto stays away from the traditional financial system by implementing some "prohibitive" rules.

The exciting news broke through a tweet from the European Parliament's Economic and Monetary Affairs Committee.

But hold your horses, we're not done just yet.

The deal now needs to be voted on by the member states in the EU's Council for it to become official legislation. This voting process could take a few months, so we'll have to wait and see.

So, in a nutshell, the EU is taking a stand and setting some ground rules for crypto assets in the banking world. It's like putting up some velvet ropes and bouncers to keep the unbacked crypto out of the VIP area. Now it's up to the member states to give their thumbs up and turn this deal into full-fledged legislation.

It might take a little while, but it's all part of the process.

Some more news:

Tweet of the Day🐦