Updates (P.1)

Kwenta
• Kwenta outperforms GMX in trading volume due to reduced trading fees and an incentives program.

Bitcoin Inscriptions
• Bitcoin inscriptions and marketplace volumes are dropping, indicating reduced interest.

Change in Apple's Position on Crypto Integrations
• Crypto product STEPN integrates Apple Pay, simplifying the crypto experience and encouraging adoption.

Ethereum Security
• Vitalik discourages reliance on Ethereum validators for fund recovery in case of exploits or bugs.
• Bridges that wrap assets are seen as risky, with atomic swaps recommended instead.
• Validiums are preferred over sidechains for their enhanced security.

Cosmos Security Model Updates
• Cosmos introduces "Replicated Security" and develops new security models to cover validator running costs.
• Besides Replicated Security, Opt-in Security and Mesh Security models are under development.

Your feedback is important to us. Thank you for providing it and for the messages 🙂

Today we have another Altcoin Market Update for you.

- Litecoin (LTC)

- Cardano (ADA)

- Polygon (MATIC)

- Polkadot (DOT)

- The Graph (GRT)

- Avalanche (AVAX)

- Anker (ANKR)

- Lido Dao (LDO)

Charts and updates: https://twitter.com/cryptoBLTS/status/1662214161177403392?s=20

Who Has The Bitcoin? A Closer Look At The Bitcoin Supply

• Around 47% of Bitcoin supply is traceable; 4 million are lost.
• Major Bitcoin holders include exchanges, Grayscale Trust, and companies like MicroStrategy.
• Binance and Coinbase hold the majority of Bitcoin on exchanges.
• Long-term Bitcoin holding is historically high, and coins on exchanges are decreasing.
• Bitcoin's 'illiquid supply' (held by entities), rarely sold coins, is at an all-time high.
• Bitcoin's supply is becoming more distributed, especially among smaller, retail holders.
• Large Bitcoin holdings often represent custodians for many users.
• Bitcoin ownership is transparent and easily auditable.
• Bitcoin adoption is widespread and growing, further distributing its supply.

(Source: BITCOIN MAGAZINE PRO)

RT, like & follow us also on twitter: https://twitter.com/cryptoBLTS/status/1662341142208192513?s=20

Interest rate derivatives in crypto

• Crypto interest rate derivatives struggled in 2022.
• Voltz and IPOR boosted the sector in 2023 by introducing DeFi interest rate swaps.


IPOR Protocol

• DeFi protocol enabling Interest Rates Derivatives on Ethereum.
• IPOR v1: IPOR Index, IPOR AMM, liquidity pools, and Asset Management contracts.
• (New) IPOR v2 aims to become the central hub for DeFi credit, connecting diverse markets.
• Will leverage Ethereum staking and liquid staking derivatives for new risk management tools.
• IPOR v2 will bridge DeFi and traditional finance rates, facilitating arbitrage.
• Launch July

Voltz

• Interest Rate Swaps for Volatile Yields
• Utilizes a concentrated liquidity virtual AMM mechanism
• vAMMs are virtual liquidity pools used for price discovery, not spot trading
• Traders provide liquidity to each other in vAMMs, enabling leveraged positions
• vAMMs use funding rate mechanisms to incentivize accurate price tracking
• Voltz V2 allows Voltz to act as a base layer for derivatives trading
• (New) SOFR (Secured Overnight Financing Rate) rates on Avalanche

(Source: delphidigital)

New CryptoBullets Issue for Free

We've listened, we've learned, and now we're leveling up!

Following the invaluable feedback we received from you last week, we are thrilled to announce that starting next week, we're going to supercharge your experience with enhanced insights, specifically tailored for you.

There will also be some surprises waiting for you next week. Stay tuned!

In the meantime, grab a cup of coffee, read the new CryptoBullets issue and enjoy your Sunday.

Thanks,
The Alchemic One (TAO)

Market - This Week

Tuesday
• US - CB Consumer Confidence (MAY)
• China - Manufacturing PMI (MAY)

Wednesday
• US - JOLTs Job Openings (APR)
• Canada - GDP (MAR)
• Germany - CPI Inflation (MAY)
• Germany - Unemployment (MAY)

Thursday
• US - ISM Manufacturing PMI (MAY)
• US - ADP Employment (MAY)
• UK - Manufacturing PMI (MAY)
• Europe - CPI Inflation (MAY)

Friday
• US - Nonfarm Payrolls (MAY)
• US - Unemployment (MAY)

Note: As mentioned in the TAO section yesterday, keep these unlocks in mind.

• Optimism token unlock this week (around $250M/ 3.6%) - 31 May
• 1inch token unlock this week (around $99M/ 16.7%) - 02 Jun

State of Crypto Market Structure

• Crypto trading volumes declined significantly
• Binance's market share has decreased to 56%, benefiting other exchanges like Huobi, Kraken, and Kucoin
• Offshore exchanges, making up 86% of volume, and decentralized exchanges, are likely to grow due to US regulatory uncertainty
• Liquidity for Bitcoin and Ethereum remains flat, leading to higher market volatility
• TUSD's activity has grown on centralized exchanges, while BUSD's has declined
• Stablecoins, especially Tether, dominate trading pairs on centralized exchanges
• Decentralized exchange volumes are steadily increasing (Uniswap dominating) relative to centralized exchanges

_

Digital Asset Fund Flows - weekly

• Digital assets had the 6th week of outflows ($39M) totaling $272M
• Trading volumes were low last week, at 58% of this year’s average
• Bitcoin saw outflows of $11M; short-bitcoin saw a 36% decrease in AuM (also $11M)
• Altcoins had outflows: Algorand $8M and Ethereum $5.9M; Litecoin and Uniswap had minor inflows
• Blockchain equities had outflows of $3.4M last week

Regulatory Developments of This Week

• Huobi HK extends services in Hong Kong amid new regulatory regime.
• China hints at softer cryptocurrency stance with a plan to foster Web3 development.
• Republicans in the US block Biden's proposed 30% tax on crypto mining firms.
• LBRY files a brief that could aid Ripple Finance in their ongoing SEC lawsuit.
• Ripple vs. SEC case outcome could influence future crypto regulation.

Note: Watch the outcome of the U.S. debt ceiling agreement. Possible short-term opportunities. If the agreement is passed, then the price will reflect it. High volatility (very likely). Protect your positions.

RT, like & follow us also on twitter: https://twitter.com/cryptoBLTS/status/1663847950395617280?s=20

If you used the token unlock information from the last free Crypto Bullets issue, you should be in profit.

Great work!

1inch dip was not that big, but you have to keep in mind that the unlock is still to come.

One possibility is to secure these positions.

Thanks,
The Alchemic One (TAO)


RT, like & follow us also on twitter: https://twitter.com/cryptoBLTS/status/1663908643358556162?s=20

The Bitcoin on-chain accumulation score is warming up

• Small Bitcoin holders (under 1BTC) have been aggressively accumulating Bitcoin over the past three months.

• Large Bitcoin holders have been distributing their coins, likely due to exchanges reallocating holdings.

• The "accumulation score" shows Bitcoin holder sentiment. Despite stagnant BTC price in May, the score rose, suggesting optimism among holders.

• This bullish sentiment might not be enough to significantly push the market higher.

• CME Bitcoin futures market shows a lack of enthusiasm as the premium over the spot market decreases, open interest remains stagnant, and net positions of hedge funds and asset managers remain unchanged.

RT, like & follow us also on twitter: https://twitter.com/cryptoBLTS/status/1664225720929755136?s=20

Opportunities on Starknet

The zk narrative is not here yet, but once it comes many projects in the ecosystems will benefit. Here are four projects that can be tested and will most likely have an airdrop.

- zkLend
- Layerswap
- Briq
- JediSwap

Here you can find some easy ways to qualify for the possible airdrops: https://twitter.com/cryptoBLTS/status/1664635423228932098?s=20

Are we on the brink of witnessing the long-awaited Altcoin Season?

- TOTAL2 breakout
- Continuous Retest
- Early Reversal Signs

Read more: https://twitter.com/cryptoBLTS/status/1664988538457169920?s=20

Bitcoin's next move

We'll show you what you can expect in the coming weeks and months.

In this week's issue:

- Bitcoin: Short-term, Mid-term & Long-term
- Backtest Signals
- BTC Cycle Analysis
- 10 Altcoin TA
- 3 additional opportunities for an airdrop
- Narratives and information for new opportunities
- Key News

Get the new issue here: @cryptobullets_bot

Those who seized the opportunity last week were rewarded with profits. You have seen it.

Monthly subscribers will get a surprise next week.

Grab your TL;DR issue and enjoy your Sunday.


Thanks,
The Alchemic One (TAO)

RT, like & follow us also on twitter: https://twitter.com/cryptoBLTS/status/1665390040854216705?s=20

Sei Airdrop

As mentioned in a previous report, the airdrop has been confirmed and those who took advantage of the opportunity at that time should have qualified.

The window of opportunity is closing, and it may already be closed.

Those who still want to try can do so. The testnet is still live.

It's free and it's done quickly.

Here is a short thread: https://twitter.com/cryptoBLTS/status/1665723262179868673?s=20

Bitcoin Falling Wedge Breakout Failing?

• Bitcoin briefly broke above a key resistance but failed to sustain it.

• Prices are now declining and threatening key support levels.

• Retest 200-week MA

• Past trends suggest possible rebound, but a weekly close below these levels may signal further decline.

RT, like & follow us also on twitter: https://twitter.com/cryptoBLTS/status/1665808099523829761?s=20

Upcoming Treasury Buybacks

• The MOVE index indicates increased Treasury market volatility due to fewer buyers and Federal rate hikes.
• Persistent inflation prevents the Fed from easing policies, further destabilizing the bond market.
• To counter this, the Treasury will reintroduce Treasury Buybacks in 2024, swapping newly issued debt for illiquid bonds.
• This strategy helps reduce market volatility and supports stability, but its impact will be less significant than Quantitative Easing.
• If a market disruption occurs, the Treasury will intervene, although its capacity is limited.

Expect similar news in the coming days/weeks. Like those from Binance and Coinbase today.
Always remember. Keep only what is necessary on exchanges.

BTC Part 1 (Fear & Greed Index)

- Now testing the absolute trend as support on indicators
- Impacted by government regulations
- Despite recent price drops, indicators suggest BTC may continue its bullish trend
- Bitcoin's fear and greed index is at "fear" (44/100)

Read more here: https://twitter.com/cryptoBLTS/status/1666151520058867723?s=20

BTC Part 2 (MVRV)

- Retesting current support trend line
- Losing this trend would be very bearish
- Trends crucial for BTC price action, especially in early cycle activity
- Still far from reaching 2 MVRV score of previous Bitcoin mid-tops


RT, like & follow us also on twitter: https://twitter.com/cryptoBLTS/status/1666433675788001283?s=20