🌊 Volatility incoming

Together With:

Sponsor Our Newsletter | Trade Crypto

Good Morning!

After a rough start to the week, yesterday saw the first Bitcoin inflows in over seven days, as Bitcoin and other altcoins recovered from their early Monday dump.

Traders are expecting a volatile end to the week as well, with billions in options expiring.

Elevate Your Trading Experience with MEXC! (Sponsor) 

Ready to take your trading to the next level? Your search ends here! MEXC provides unparalleled opportunities, ensuring maximum profits and minimal costs. Discover a new era of trading with us:

🔹 Minimize Costs, Maximize Gains - Benefit from ultra-low 0.1% spot maker & taker fees that enhance your earnings.
🔹 Swift & Diverse Listings - Access the quickest listings and the most extensive range of cryptocurrencies exclusively on MEXC.
🔹 Top-Notch Security - Trade confidently with our industry-leading security measures.
🔹 Smooth Launches - Be among the first to invest in top-tier crypto projects with outstanding liquidity.

Join Now and revolutionize your trading approach with MEXC!

Markets 

US spot bitcoin ETFs score $31 million in net inflows after outflow streak (2 minute read)
On Tuesday, spot bitcoin exchange-traded funds in the U.S. saw a return to net inflows, totaling $31 million. This positive shift comes after seven straight days of net outflows from the 11 bitcoin funds. Fidelity's FBTC was the frontrunner, attracting $49 million in net inflows. Bitwise's BITB followed with $15 million, while VanEck's HODL saw a more modest inflow of $4 million.

Renewed Bullishness Expected After Bitcoin, Ether's $10B Options Expiry on Friday (2 minute read)
Discussions about crypto derivatives are heating up, you may ask why?

On Friday at 08:00 UTC, bitcoin options worth $6.68 billion and Ethereum options worth $3.5 billion will expire on the major crypto derivatives exchange Deribit. This expiry represents over 40% of the current total open interest, exceeding $23 billion, potentially sparking a surge in market volatility.

Large quarterly expiries often lead to unpredictable price movements due to increased trading volumes and the closing or rollover of positions. Options are derivative contracts that give holders the right, but not the obligation, to buy or sell an underlying asset at a set price by a specific date. A call option allows buying, while a put option allows selling. On Deribit, one options contract equals one BTC or ETH.

With more than 25% of open interest set to expire in the money, many contracts are expected to be profitable at expiration. This month, bitcoin has fallen nearly 9%, dipping below $60,000, affecting the broader market and pulling eth down by almost 10%.

Ethereum hits longest inflationary period since Merge (2 minute read)
Ethereum is currently experiencing its longest inflationary period to date, and "blobs" may be the culprit. For nearly 72 consecutive days, the circulating supply of ether has increased, adding almost 50,000 ETH ($168.7 million) since mid-April. Typically, ETH holders benefit from net supply burns, which increase scarcity. However, the opposite is happening now as Ethereum's base fee hits some of its lowest levels in the past two years.

Despite an increase in Ethereum mainnet transactions and a surge in layer-2 activity, ETH's supply is growing. Since the Merge in September 2022, ETH has only experienced a few extended inflationary periods, the longest being a 40-day stretch after the hard fork and a 30-day period late last year.

The current inflationary trend is due to fewer base fees being burned. The Dencun update in March reserved space in every block for layer-2 networks to settle "blobs" of transactions without competing with regular mainnet users. This, coupled with more efficient data availability through proto-danksharding, has significantly reduced competition for block space.

Best of Crypto Twitter

Misc

SEC Chair Gensler Says Ethereum ETF Approval is Going Smoothly (2 minute read)
SEC Chair Gary Gensler has stated that the approval process for the Spot Ethereum ETF is progressing smoothly. Speaking at the Bloomberg Invest Summit on Tuesday, Gensler discussed the upcoming investment product, which received initial approval in late May, and the timeline for when it might go live.

The SEC is collaborating with issuers on their S-1 filings, which need to be approved before these investment products can start trading. Many experts anticipate that the second crypto-based ETF in the U.S. will launch in July.

Gensler reiterated that the Ethereum ETF approval is "going smoothly," but he was uncertain about the exact launch timing. He noted that issuers are still working through the registration process and expected that it could be completed over the summer.

US Recognizes Crypto as a Security For the First Time (2 minute read)
Two executives from Hydrogen Technology were sentenced this week for their involvement in a complex cryptocurrency securities fraud scheme.

This case is significant as it marks the first time a federal jury officially recognized a cryptocurrency as a security. This decision could establish a legal precedent for applying securities laws to digital assets, offering a clearer regulatory framework for entrepreneurs and investors.

Shane Hampton, 32, from Philadelphia, was sentenced to two years and 11 months in prison. His accomplice, Michael Kane, 39, from Miami Beach, received a sentence of three years and nine months.

According to the US Department of Justice, Hampton and Kane, along with other co-conspirators, used sophisticated methods to manipulate the market price of their company’s cryptocurrency, HYDRO. Their tactics included employing a trading bot to generate fake orders on a major US cryptocurrency exchange, artificially inflating the price of HYDRO.

Our Recommendations:

💻️ MEXC - Where we find and trade new coins with low fees
📈 TradingView - Software we use to chart Crypto.
🔐 Trezor - Our favorite hardware wallet to keep our Crypto secure.
🦑 Kraken - Where we buy crypto with cash / withdraw profit to our bank.

Thanks for reading, if you enjoyed, tell your friends!

P.S: If you're interested in the wider investing world. Check out our flagship publication.