Digital Asset Fund Flows - weekly


- Outflows totalling $88M (8-week outflow of $417M)
- Nearing the record 12-week outflow seen last year
- North America was the region with the highest outflow
- Minor inflows of $9.2M were reported in Switzerland, while Germany experienced an outflow of $9.4M
- Bitcoin recorded an 8-week outflow of $254M (1.2% of total AuM), with short-bitcoin seeing outflows representing 44% of AuM
- Ethereum faced its largest single week of outflows since last September, totaling $36M (0.6% of AuM)
- Altcoins showed varying results, with minor inflows into Litecoin, XRP, and Solana, and outflows from Polygon

CME Bitcoin derivatives - Update

- Remain stable
- Traders aren't rushing to get Bitcoin futures; premium over spot is nearly zero.
- Open futures interest hasn't changed significantly in 3 months.
- Increased short positions are likely temporary responses to SEC crypto regulation.
- Puts to calls ratio in CME options is even, indicating no clear market direction.
- Max pain strike ($27k) relatively close to spot BTC, but likely won't significantly influence it.

DeFi - Update

- Curve: Founder; $110M leverage position against CRV (Aave, Fraxlend, Abracadabra)
- Sturdy Finance exploit
- Finblox Starts Offering Tokenized Treasury Yield With OpenEden
- Avail Network Starts Phase 2 of Its Testnet
- Uniswap V4 revealed
- Polygon Labs introduces Polygon 2.0 (set of upgrades to offer scalability and unified liquidity via ZK tech)
- Enjin Blockchain Live
- Hubble Exchange Testnet
- 21Shares, introduces 21Shares Lido DAO ETP (LIDO), offering traditional investors single asset exposure to Lido DAO
- Options AMM Aevo is now open to the public
- Balancer is now live on Polygon zkEVM to enable boosted & liquid-staked ETH pools


Note: Keep an eye on the Curve position and possible consequences as a result.

Update for TL;DR buyers

You can now secure positions in profit (move SL).
There is potential for further down, but protecting does not hurt.

As mentioned in the TAO section of the TL;DR issue, we said something stablecoin related was coming this week.
Someone shorted too aggressively. And we have seen it today. It paid off.

If you want more information like this, in the weekly TL;DR, react with 🔥

We provide the information and then you decide.

We will continuously optimize the TAO section to provide you with information that will bring you faster results.

Thanks,
The Alchemic One (TAO)

Note: If anyone still wants to qualify for the zkSync airdrop, don't wait too long.
Rumor on the street: The airdrop will come sooner than many expect. You don't want to miss this FREE MONEY opportunity.

Bitcoin ETF

- BlackRock has officially filed for spot Bitcoin ETF today
- Chances are good that this time it will be approved (If so, then probably 2024)
- There are still some challenges that need to be faced

The market has reacted positively to this news (short term), but remember that it will take some time.

We will continue to monitor the fund flows and see if liquidity comes back into the market or if we continue to have negative fund flows.

More on this topic on Sunday.

Fraxchain

- Frax Finance plans to rollout its own blockchain
- Designed as a Layer 2 rollup
- Governance led by holders of FXS
- Transaction fees will be in Frax stablecoin and frxETH
- Fees could be partly burned or redirected back to FXS stakers
- Platform will include decentralized sequencers (for transaction ordering)
- Launch end of the year

Read more about Frax in our tweets: https://twitter.com/cryptoBLTS/status/1669784204480073730?s=20

Note: The market share of decentralized stablecoins will grow. It will be a highly competitive market and protocols will want to outbid each other to attract liquidity. However, the growth will be in favor of the token prices. The tokens with a good and sustainable revenue stream (for the holders) will win in the long run.

Token Bound Accounts — ERC-6551

- Allows NFTs to own smart contract accounts, or Token Bound Accounts (TBAs)
- TBAs introduce a hierarchy between NFTs and their associated assets, enabling transaction history
- ERC4337 compliant accounts serve as initial implementation, programmable for interactions with other smart contracts

ERC-4337 includes two primary services:
- Bundlers, which aggregate and relay user operations on-chain
- Paymasters, which can subsidize or convert gas fees, adding product design flexibility

Impact of ERC-6551:
- Will add complexity to NFT marketplaces (NFT + the associated assets in the TBA)
- Opens the possibility of combining NFTs and their TBAs with AI and Web3 functions
- Could deliver unique and personalized experiences
- Will create new markets and opportunities

What are the predictions for bitcoin and altcoins?

Will we get Bitcoin Season, Altcoin Season or will the market continue to bleed?

Everything you need to know is in our new CryptoBullets issue.

Get the issue here: @cryptobullets_bot

Congratulations again to all who used the stablecoin related information from the last issue.

We promised you that we would provide you with more information for faster results, in addition to the TL;DR of the reports, and we have kept our promise.

You were rewarded with an easy and profitable trade.
Your success is our goal!

In this week's issue:

- Bitcoin Update
- On-Chain Analysis
- Altcoin Market Update
- Protocol Updates
- Key News
- 6 Altcoin TA

Grab your TL;DR issue @cryptobullets_bot and enjoy your Sunday!

Thanks,
The Alchemic One (TAO)

Note: Based on the feedback from the poll, it is evident that you desire more frequent updates throughout the week to take advantage of opportunities more quickly. Starting next week, we will begin providing these updates to our monthly subscribers.

The GLD ETF a precedent for The BTC ETF?

- GLD was approved in March 2003
- Launched in November 2004
- Growth of GLD contributed to a significant uptrend

If the SEC approves a BlackRock Bitcoin ETF:
- Could lead to more BTC being captured by the ETF
- Making circulating Bitcoins scarcer and driving prices higher
- Approval would create a positive narrative & could be a significant boost for BTC

Read more: https://twitter.com/cryptoBLTS/status/1670838212560928776?s=20

Update SEI Network Free Money Opportunity

If you missed the first SEI Bridge Test Event, now you have a second chance.

Everything is on testnet and takes just a few minutes.

How:

- Get testnet Matic to participate in the event
- Go to the SEI bridge page
- Connecting and Bridging
- Repeat it a few times and you are done

This increases your chances for the possible $1k+ airdrop.

Airdrop Guide with all steps in case you need them:
https://twitter.com/cryptoBLTS/status/1670868680383528960?s=20

Crypto Market Cap Update

- Has successfully retested the lower yellow support area (previously a resistance)

- Retest is a positive development (still a chance for more volatility and drop)

- Drop wouldn't undermine the significance of the support retest

- Successful holding of the yellow support area indicates a new trend for BTC

- Represents a major shift from the previous year's pattern when the Market Cap was rejected at the same level

- Positive trend for BTC

Digital Asset Fund Flows - weekly

- Digital asset investment products experienced a 9th consecutive week of outflows
- End of the week; minor inflows following the BlackRock news
- These inflows were not enough to offset outflows
- Minor outflows totalling $5.1M (Outflows now totalling $423M)
- The US and Germany saw minor inflows of $3.7M and $2.4M
- US leading in total inflows year-to-date at $147M
- Canada has experienced significant outflows of $277M year-to-date
- Crash in altcoin prices (prior week) led to investors adding to positions
- XRP, Cardano, and Polygon were the primary focuses
- Ethereum saw the week's largest outflows of $5M
- Blockchain equities recorded the largest outflows since FTX, totaling $12.3M

SilkRoad/ US Gov BTC related Wallets - Update

It appears that there is activity on one of the US Gov related wallets.

SilkRoad/ US Gov related Wallets:
- bc1qf2yvj48mzkj7uf8lc2a9sa7w983qe256l5c8fs
- bc1qe7nk2nlnjewghgw4sgm0r89zkjzsurda7z4rdg
- bc1qzd8c8h8dcgwuy5zdafdzdce2ap0nayf8v3xrez (this one)
- bc1qmxjefnuy06v345v6vhwpwt05dztztmx4g3y7wp

The activities were on one of the smaller wallets.

Tempus Finance

- Develops DeFi products through community collaboration
- Tempus Labs leads the project as chosen by Tempus DAO governance
- Governed by TEMP token holders
- Holders can propose and vote on DAO decisions
- Holders enjoy early access to new products and tokens

The monthly subscribers already know this and those who have used the information are already up.

Raft_fi & NostraFinance don't have a token yet but there will be one and this is where the TEMP position comes into play. As described in the docs and also confirmed by the team, TEMP holders will benefit from all products coming out of the DAO.

The high interest in the LSDFi sector and the increasing TVL of RAFT makes the potential airdrop interesting for TEMP holders.

There are currently two projects that are covered by TEMP tokens and have no token atm.

RAFT - raft_fi
NOS - nostrafinance


Note: TEMP is x5 from Seed sale (2021), but well below Public & Strategic sale price. TempusFinance itself is quiet in terms of attention, but the projects from the DAO are getting attention.

Read more: https://twitter.com/cryptoBLTS/status/1671421953066844160?s=20

Market Update

- The US Treasury is set to draw $18 billion from the market, potentially impacting other asset classes
(On Thursday, over $105 billion in US Treasuries will mature; simultaneously, $123 billion in USTs will be issued)

- UK bonds have devalued to a critical level, prompting questions about potential buyers to prevent a sell-off

- Global central banks may have to step in as US Treasury refills could lead to selling of other sovereign debts

- The equity risk premium for the S&P 500 is at a 2007 low, making US Treasuries more attractive

Crypto Update

- Ripple has received regulatory approval to offer regulated digital asset products and services in Singapore

- The chairman of the US Financial House Committee has scheduled a session in July to push legislation forward, aiming to establish a clearer route for digital assets to shift from being classified as securities to being treated as commodities.

DeFi:

- MakerDAO: sDAI is now available on Spark Protocol by depositing DAI in exchange for sDAI

- Polygon Labs proposes to upgrade the Polygon PoS chain to a zkEVM Validium

- Arpa Network, a threshold BLS network, is now live on Ethereum

- Camelot launches its AMM V3, backed by Algebra’s concentrated liquidity engine

- Dopex launches Option Scalps V2

- Stablecoin protocol Reserve invests $20M to buy governance tokens from Curve, Convex, and StakerDAO (for more voting power)

- Magpie integrates with Radiant to introduce Radpie, a yield optimizer for Radiant dLP token holders

Update TL;DR buyers

As we wrote in the TAO section in the last TL;DR issue. When the market recovers, Tradingbots will benefit well from it.
A few have made over 100% in the last days and again over 60% today.

In the long run, some should do better than the others, especially those that share revenue with token holders.
But it doesn't hurt to minimize risk after a run (especially if they are low Mcaps).

Thanks,
The Alchemic One (TAO)

Market Summary

- Bitcoin briefly dropped below $25,000, but surged past the 200WMA and short-term holder realized price due to BlackRock applying for a Bitcoin ETF.

- The short squeeze caused Bitcoin to cross the $30,000 mark, resulting in the year's highest number of daily short liquidations.

- The BlackRock news reduced the GBTC discount, and Bitcoin fund flows nearly neutralized.

- The next target is $32,500, a crucial support and resistance level.

- Global M2 money supply and central bank balance sheets trends haven't significantly changed.

- Bitcoin's rally coincided with the VIX's lowest level since 2020 and the SPX around 4400, indicating potentially lower market volatility.

- The upcoming week will show if this bullish momentum continues as Bitcoin retests the major $32,500 level.

zkSync Guide

We care about you and don't want anyone to miss out on the opportunity.

The time window for qualification is getting smaller and smaller.

We have created an ultimate guide that will increase your chances multiple times and also increase the amount of the airdrop.

Share the guide with all your crypto friends. They will thank you when they get the airdrop.

zkSync Guide: https://twitter.com/cryptoBLTS/status/1672216541729898498?s=20

Market Update

- Despite a predicted slow market season, the Fed's actions have led to a strong S&P 500 performance, though signs indicate a potential reversal.

- The Fed and US Treasury are collaboratively working to reduce bank reserves, leading to early signs of market-wide liquidity decline.

- BTFP usage has risen to $102.7 billion, leading to increased risk-taking in markets due to supported credit.

- Despite economic weaknesses, markets are buoyed by supported liquidity and robust corporate balance sheets.

- The Commercial Real Estate sector is facing high risks, with banks being advised to reduce their exposure.

- Weak earnings and higher deposit rates are expected to result in more bank mergers and failures this year.

- Questions loom about whether the Fed will create a facility to buy distressed commercial real estate and CMBS to protect banks from insolvency.