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CZ Steps Down, Binance gets Sued and BTC Breakdown | Cipher Digest

Author

Asim Sar
June 05, 2023

Good Afternoon Everyone!

I know you’re busy pretending to be working today, so let’s jump in and get you caught up on the markets!

Contents

  1. Last Week in Review 📆🔍

  2. What's Coming New to Crypto? 🚀💡

  3. Crypto Market Analysis (BTC) 💰📊

  4. Traditional Finance Market Breakdown 💼📉

  5. What to Watch this Week! 👀📅

  6. Tweets of the Day 🐦✨

Last Week In Review 📆🔍

  • Despite the regulatory crackdown on crypto since 2017, China releases a whitepaper promoting web3 innovation in the territory.

  • New Hong Kong licensing crypto regulations are now officially under effect.

  • US lawmakers propose crypto regulatory clarity in new bill draft, which would prohibit the SEC from denying digital asset companies from registering as alternative trading platforms.

  • Binance to delist privacy tokens in France, Italy, Spain and Poland.

  • Hong Kong and United Arab Emirates’ central banks look to collaborate on crypto regulations, and fintech development.

  • ETH staking reaches new record highs.

  • Nike NFTs to be integrated into EA Sports games.

  • US labor market remains resilient as job openings climb, layoffs drop.

  • Bitcoin is headed for its first monthly loss in six months

  • Coinbase derivatives exchange to offer Bitcoin and Ether futures

  • Atomic Wallet users hacked for $35M

  • RBI plans to expand CBDC pilot in India

What’s new? 🚀💡

1/ Real yield on @FantomFDN!!- Gas monetization is live

2/ Chads from @KyberNetwork just announced the beta launch of KyberAI, AI-powered analytics which we’ll definitely use before we ape into coins Don’t forget to check the teaser video!

3/ We’ll finally see @vela_exchange officially launch on June 26th!

4/ Binance Hands Rising Star Teng Key Role to Replace CEO Zhao at Largest Crypto Exchange

The appointment of Richard Teng to oversee Binance’s regional markets outside the U.S. has positioned the one-time Abu Dhabi regulator as the most likely successor to Changpeng Zhou, who founded the world’s largest crypto exchange in 2017.

The enhanced role follows a report last month that Zhou, commonly known as CZ, is looking to reduce his ownership of Binance.US, the firm's American arm – a move seen as an appeasement to U.S. regulators.

Teng's knowledge and experience as a regulator will come to bear in his new role overseeing Asia, Europe, the Middle East and North Africa as the exchange, often targeted by authorities, attempts to draw a line under mounting enforcement actions related to conduct during crypto’s early years.

Crypto Market Analysis 💰📊

Open interest has been ticking higher since Sunday evening and has now gone up by $500 million despite prices coming down.

We might witness an uptick in volatility shortly.

BTC/USDT Daily

On the Daily Timeframe we can see that there has been little movement over the past week. We are still within the larger bull flag, which is marks two key levels to watch for a breakout.

BTC/USDT 4H

On the 4 Hour chart above, we also want to note that we are in a tight range (between the blue lines). Price has remained largely between $26650- $27600, since the 11th of May, except for to deviations which we have also marked.

So.. in the short term, watch for a breakout when we approach this resistance and support.

The last thing I want to note on BTC is the HUGE drop off in volume we have seen on Binance. This partnered with the above noted market movement and sentiment, gives us a bearish sentiment in the near term.

Traditional Finance 💼📉

In a statement by the International Monetary Fund (IMF), it was noted that there has not been a significant reduction in lending by banks at a level that would prompt a revision in the U.S. Federal Reserve's ongoing rate-hiking cycle.

"We don’t yet see a significant slowdown in lending. There is some, but not on the scale that would lead to the Fed stepping back,"

Kristalina Georgieva, Managing Director of the IMF.

In related news, oil prices experienced a 3% increase following the decision by Saudi Arabia, a significant member of OPEC, to reduce its production by an additional million barrels per day. As a result, the kingdom's daily production is expected to decrease from approximately 10 million barrels in May to 9 million barrels commencing in July.

Meanwhile, U.S. equity futures remained relatively stable on Monday, following a widespread rally that resulted in the S&P 500 recording its most substantial weekly gain since March and reaching its highest point since August.

NASDAQ

SP500

What to Watch this Week! 👀📅

  • Monday: US ISM services PMI

  • Wednesday: CAD interest rate decision

  • Thursday: US Unemployment Claims

Tweets of the Day 🐦✨