Daily News | Positive CPI Failed to Lead BTC Out of Volatility, Grayscale Protested Against SEC's Discriminatory Treatment, Cathie Wood Reduced Her Holdings in Coinbase Stocks

2023-07-13, 04:06

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## Crypto Daily Digest: The proportion of crypto investment funds declined, and Cathie Wood reduced her holdings in Coinbase stocks for the first time, Grayscale protests against SEC discriminatory treatment
A survey report by PwC shows that among 59 traditional hedge funds surveyed, the proportion of funds investing in cryptocurrencies has decreased to 29%. According to the survey of PricewaterhouseCoopers and the Alternative Investment Management Association (AIMA), the proportion of traditional hedge funds investing in crypto assets has dropped from 37% in 2022 to 29% this year.

The report adds that a quarter of hedge funds currently investing in the field have stated that increased uncertainty in US regulation of the encryption industry may lead them to reconsider this asset class. The report states that more than 70% of the investment decisions of 59 hedge funds surveyed were affected by last year's market events (the collapse of several mainstream crypto companies such as FTX), with these funds managing a total of $280 billion in assets.

The sluggish data of the above-mentioned investment funds also indirectly reflects the downturn in the crypto market.

CoinMarketCap has released the ultimate guide for exchange activities (CEXs and DEXs) in the first half of 2023, with the total spot trading volume of the top 20 exchanges decreasing by 36% compared to the previous quarter.

The relevant analysis content includes transaction volume, market size, and regional/currency coverage. The report shows that in the second quarter of 2023, the top 20 exchanges contributed $1.67 trillion in total spot trading volume, a decrease of 36% compared to the previous quarter. This decline indicates a significant slowdown in market activity, which was dominated by retaliatory active trading activity driven by the doubling of Bitcoin prices in the first quarter of 2023 ($2.6 trillion).

Due to the impact of the bearish cycle on the CEX platform, Cathie Wood's Ark Fund has also sold Coinbase stocks for the first time in nearly a year.

According to Bloomberg, Ark Investment, a fund under Cathie Wood, has reduced its holdings of Coinbase stocks for the first time in nearly a year. It sold 135,152 Coinbase stocks on July 11, marking the first sale of the stock since July 26, 2022. Ark is the fourth largest holder of Coinbase, and the documents submitted by the Chicago Board of Options yesterday added to <a href="/price/optimism-op" target="_blank" class="blog_inner_link">Optimism</a> about the possibility of the US approving <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs, with the stock rising 9.8%.

Grayscale wrote a letter to the Federal Court of Appeals protesting against the SEC's differentiated treatment of Bitcoin ETF products. According to the official announcement, the lawyers of Grayscale Investments have submitted a letter to the United States Court of Appeals for the District of Columbia Circuit, protesting that the U.S. Securities and Exchange Commission (SEC) continues to refuse to approve spot Bitcoin ETFs such as GBTC while approving leveraged Bitcoin futures ETFs.

Grayscale indicates the SEC's approval of leveraged Bitcoin futures ETFs, providing more support for its legal argument that the SEC is acting in any way. Grayscale indicates that while allowing leveraged futures products to be traded, there is no sufficient reason to continue refusing to approve spot products.

RWA track is rising, and the tokenized US treasury bond exceeds $600 million. According to the data released by RWA. xyz, crypto investors have invested $614 million in US bonds through different tokenized treasury bond products, which package US treasury bonds, bonds, and monetary funds into tokens.

As the yield of US treasury bond bonds, which are widely regarded as Risk-free rate, exceeds the yield of Defi, investors' demand for tokenized US treasury bonds is increasing.

This year, a series of new entrants, such as OpenEden, Ondo Finance, and Maple Finance, released blockchain-based treasury bond products for mature investors, digital asset companies, and DAOs.

## Today’s Main Token Trends
### BTC
![](https://gimg2.gateimg.com/image/article/1689229610BTC.png)
The four-hour chart continues to test convergence on the downside. In the short term, it is crucial to maintain support at $30,213. The trading volume has been slightly insufficient in the past 24 hours. The upside targets remain unchanged at $32,235 and $33,085. The top target is $36,500 and $41,550.

### ETH
![](https://gimg2.gateimg.com/image/article/1689229633ETH.png)
The four-hour chart shows a potential head and shoulders top pattern. Currently, it is expected to continue testing the $1,857 level, with a brief dip to $1,870 in the morning. Short-term trading volume remains low. The long-term strategy should wait for a pullback to the $2,000 level before considering a shift from bearish to bullish.

### LTC
![](https://gimg2.gateimg.com/image/article/1689229656LTC.png)
In the short term, <a href="/price/litecoin-ltc" target="_blank" class="blog_inner_link">Litecoin</a> is still forming a head and shoulders bottom pattern. The $93.39 level should be maintained, and attention should be given to a potential pullback to the $104.02 level. A successful pullback could lead to a continued bullish trend targeting $126.26. For long-term holding, the price could reach $128.15.

### GT
![](https://gimg2.gateimg.com/image/article/1689229680GT.png)
The four-hour chart shows a potential head and shoulders top pattern. The neckline should be monitored at $4.1882, with a medium-term support line at $3.6040. The maximum support line is still holding at the quarterly level. The major bullish targets are $28.5658, $39.1555, and $45.05.

## Macro: CPI exceeded expectations, disinflation slowed down, and the last interest rate hikes may approach in July
In June, the core CPI increased by 4.8% year-on-year, and the quarter-on-quarter growth rate fell from 0.4% to 0.2%. This is a positive trend, but it should also be noted that some of the more volatile sub items have dragged down inflation, such as hotels and air tickets. Looking ahead, we believe that US inflation in the second half of the year may exhibit a combination of "core CPI slowdown+total CPI bottoming out rebound." Conservatively, we estimate that core and overall CPI inflation will be above 3.5% by the end of the year.

For the market, the disinflation will help ease concerns about interest rate hikes, but it may be difficult to change the result of interest rates remaining high for longer. We expect the Federal Reserve to continue raising interest rates at the upcoming July FOMC meeting. We believe that the recent surge in US bond interest rates not only reflects the stickiness of inflation, but also reflects the better-than-expected fundamentals of the US economy.

Nick Timiraos, a Wall Street Journal reporter known as the "New Federal Reserve News Agency," commented on the June CPI data of the United States. He stated that inflation fell to its lowest level in more than two years last month, freeing Americans from the painful period of rising prices and increasing the possibility of the Federal Reserve stopping raising interest rates after this month's rate hike.

The United States Department of Labor stated on Wednesday that the CPI in June rose 3% year on year, significantly lower than the peak of 9.1% in June 2022, and decreased from 4% in May. The last time inflation approached 3% was in March 2021.

Investors cheered over these data, confirming that the Federal Reserve is progressing in curbing high inflation. Federal Reserve officials may still raise interest rates to a 22-year high at their meeting from July 25 to 26, as the slowdown in economic activity did not meet expectations. However, the inflation report raises questions about whether the Federal Reserve will raise interest rates as most officials predicted last month (i.e., two more hikes).

Timiraos suggests that some economists are still concerned that even if the driving factors of the COVID-19 pandemic completely subside, a strong labor market will continue to drive up inflation. If economic growth does not further slow down, wages may continue to rise rapidly, and strong demand for goods and services will drive up wages. If consumers feel secure about their jobs, they may continue to spend, making it more difficult to reduce inflation.

Regarding this, Richmond Fed Chairman Barkin, who holds FOMC voting rights next year, also stated that even if economic growth in June slows down, the growth rate of US CPI is still too fast. If tightening withdraws too early, inflation will rebound strongly, "then more action is needed from the Federal Reserve.

<div class="blog-details-info">
<div> Author:**Byron B.**, Gate.io Researcher
<div> Translator: Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>