The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Welcome to a new week! Here's what you need to know today in crypto: |
- A16z chooses London as the destination for its first office outside the U.S.
- Open interest tied to Binance's BNB continues to rise.
- A metric which tracks crypto market liquidity tanked over the weekend.
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CoinDesk Market Index (CMI): 1,125 +0.3%
Bitcoin (BTC): $25,973 +0.6%
Ether (ETC): $1,748 −0.3%
S&P 500 futures: 4,314.50 +0.2%
FTSE 100: 7,564.59 +0.0%
Treasury Yield 10 Years: 3.75% +0.0 |
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Venture capital giant Andreessen Horowitz (a16z) chose London as the site for its first office outside the U.S., saying the U.K. government is willing to create policies that encourage startups to pursue decentralization. Menlo Park, California-based a16z said it plans to use the office – which will open later this year and be led by Sriram Krishnan – to invest in the crypto and startup ecosystem in the U.K. and Europe. The firm cited a number of recent investments in U.K.-based companies, among them a new $43 million Series A funding round into blockchain-based computing resources for artificial intelligence platforms (AI) provider Gensyn. |
London, England (Shutterstock) |
Open interest tied to Binance's BNB token continues to rise, according to data tracked by Coinglass. Total open interest – the number of unsettled and active futures contracts – rose to 1.57 million BNB ($360 million at current prices) on Monday, the highest since Jan. 1. The tally has increased by over 8% in the past 24 hours and nearly 27% in the days since the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance on June 5. Alongside, BNB's going market rate has tumbled from about $300 to the current $234, its weakest level since mid-December, per CoinDesk data. The common thought among traders is that an increase in open interest alongside a price decline suggests an influx of short positions or bearish bets and thus possibly confirmation of a downtrend. A key metric tracking crypto market liquidity tanked sharply over the weekend, leaving paper-thin order books that could amplify price swings. Crypto research firm Hyblock Capital's global bid and ask indicator – which aggregates the dollar amount of resting bid and ask orders for more than 1,100 coins listed worldwide – fell by 20% across spot markets on Saturday. The sharp decline happened as alternative cryptocurrencies like SOL, MATIC, DOGE and others tumbled amid rumors of a fund liquidating its coin holdings. According to crypto hedge fund Assymetric's CIO Joe McCann, some market makers likely pulled out from the market during the altcoin plunge, causing a sharp fall in the amount of resting bid and ask orders. |
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Curve Finance founder Michael Egorov has deposited $24 million worth of Curve DAO (CRV) tokens to decentralized lending platform Aave to mitigate the liquidation risk of a $65 million stablecoin loan. Egorov began borrowing stablecoins on Aave in April, with $37 million worth of tether (USDT) being sent to crypto exchange Bitfine,x whilst $51 million in USDC was sent to prominent market maker Wintermute, according to blockchain sleuth Lookonchain. The wallet belonging to Egorov has supplied a total of $188 million in collateral on Aave, with $64.2 million in USDT being borrowed in an open position, according to Debank. |
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- The chart shows seven-day ETH call-put skew, which measures the difference between prices for bullish call options and bearish put options tied to Ethereum's native token.
- The seven-day skew slipped to -9% over the weekend, signaling the strongest bias for puts since mid-March.
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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