Daily News | BTC Rebounded after Falling Below $59K in Short Term; Swarm Markets Provides Tokenized Gold through NFTs; ZKsync Token Dropped by 40% After Its Release

2024-06-25, 03:49

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## Crypto Daily Digest: BTC ETFs had a net outflow for one week; BTC fell below $59,000 in the short term, and the Mt. Gox repayment event intensified market turbulence; Swarm Markets provides tokenized gold through NFTs; The ZKsync token continued to decline after its release, with a 40% drop in valuation
Firstly, let's examine the trading activities of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs. According to Farside Investor data, on June 24, Grayscale Bitcoin spot ETFs (GBTC) experienced outflows of $90.4 million in funds; Meanwhile, Fidelity Bitcoin spot ETF (FBTC) experienced outflows of $3,520, Bitwise Bitcoin spot ETF (BITB) experienced outflows of $8.2 million, and ARK 21Shares Bitcoin spot ETF (ARKB) experienced outflows of $7.2 million. This is the seventh consecutive day of net outflow of Bitcoin spot ETFs.

BTC fell below $59,000 in the short term, and the Mt. Gox repayment event intensified market turbulence

On June 24, around 20:30 UTC, Bitcoin fell below $59,000 in the short term, declining 8.28% within 24 hours. The total amount of outstanding positions on the entire network exceeded $370 million, mainly concentrated in long positions.

From a technical perspective, Bitcoin has recently fallen from above $70,000, forming a double-peaked bearish reversal pattern. However, FalconX's data shows that the spot and futures trading volume of Bitcoin and <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> markets in centralized exchanges is far below the historical high in March, indicating a decrease in investor participation or selling willingness, which is often a characteristic of a "bear market trap."

Earlier, the crypto market saw a significant decline. The bearish sentiment in the crypto market became increasingly strong, and the bankrupt crypto exchange Mt. Gox announced that it would begin repaying payments next month. Mt. Gox plans to return over 140,000 Bitcoins to victims of the 2014 hacking attacks. After the news was released, the price of Bitcoin briefly dropped to $60,723, a drop of over 5% within 24 hours. Ethereum and other major cryptocurrencies have also been affected, with the CoinDesk 20 index falling more than 5%.

**The MiCA stablecoin rule is about to be implemented, and Swarm Markets provides tokenized gold through NFTs**
With just over a week left until the stablecoin regulatory rules of the European Union's Crypto Asset Market Regulation Agency (MiCA) come into effect, the RWA platform Swarm Markets has found a new way to provide asset-backed tokens: issuing NFTs backed by gold.

Swarm Markets, headquartered in Berlin, plans to allow individuals to purchase NFTs representing physical gold ownership. The gold bars that support these tokenized assets will be stored in Brink's vault in London. According to Swarm's website, this protocol's total value locked (TVL) in this protocol exceeds $14.6 million. In addition to gold, the platform provides token-listed company stocks and US treasury bond bonds.

"NFTs provide unparalleled transparency for token owners. Through this structure, people can benefit from the liquidity of DeFi while leveraging the value and liquidity of traditional finance (TradFi)," said Timo Lehes, co-founder of Swarm Markets. "Swarm plans to expand its on-chain asset sector, and tokenized gold is just the first step in its commodity journey."

Swarm stated that its tokenized gold would not face the upcoming MiCA regulation as "this regulation does not apply to unique and irreplaceable crypto assets, including digital art and collectibles," according to official MiCA texts. The EU passe MiCA for the first time in mid-2023 to regulate the digital asset market and eradicate related money laundering activities, and is expected to take full effect by the end of 2024.

After learning about “Know Your Customer” (KYC) and “Anti-money Laundering (AML) processes, users will be able to exchange NFTs on a peer-to-peer basis through Swarm's decentralized over-the-counter (dOTC) platform.

**The ZKsync token continued to decline after its release, with a 40% drop in valuation**
On June 17, the highly anticipated ZKsync token ZK went public, with a market value exceeding $1 billion at one point. In the first few hours of its launch, ZK's market value briefly rose. On the day the ZK token was released, the number of active addresses on the network reached a historic high of nearly 675,000.

However, the rise of this activity is short-lived. On the second day after the release of ZK tokens, the trading volume on the chain plummeted by 37%, and on the third day, it continued to decline by 32%. The 7-day moving average of active addresses on Zync Era also showed a similar sharp fluctuation. However, just three days later, the number of active addresses decreased by half. This sharp decline suggests that the initial surge may have been driven by the sudden activity of airdropped mining sites that were used to collect tokens.

Currently, ZK's market cap is approximately $600 million, and its fully diluted valuation is $3.4 billion, a 40% decrease from its initial valuation.

A week before the release of ZK, the number of new independent addresses on Zsync Era's chain was relatively calm, with an average of about 7,000 new addresses added per day. However, on the day of the ZK token release, this number soared to 18,000. On the second day after its initial release, this number surged again by over 76%, reaching 31,800. By June 19th, the number of new independent addresses had reached 35,800.

## Market Trends: Market sentiment is extremely low, but major cryptocurrencies have begun to rebound
BTC briefly fell below $58,500 last night, but has since rebounded. This price level is a key support level, and a rebound indicates market recognition of this support level. The Mt.Gox Exchange will repay approximately $10 billion to users in July. This event may cause short-term fluctuations in the market, especially with an increase in the circulation of BTC and ETH, and its impact on the market needs to be closely monitored.

ETH also rebounded after falling below $3,250. Similar to BTC, this price level is also an important support level, and the recovery of market sentiment may further drive up prices.

Altcoins: During the decline of BTC and ETH, Altcoins showed relatively strong performance and rebounded first. This may be due to the outflow of market funds from mainstream coins, with some funds flowing into relatively niche Altcoins in search of higher returns.
### Macroeconomics
US stock market falls: Technology leader Nvidia leads the decline, with funds possibly flowing back into the crypto market. The volatility of US stocks usually affects global investors' risk appetite, and the return of funds to the crypto market may bring new investment opportunities.
### Market Hotspots:
ETH ecosystem: LDO, MOG and other tokens have surged, and the market is expected to continue to focus on the Ethereum ecosystem project as the main hype before the Ethereum spot ETF is approved in July. Investors can focus on the trends of these projects.

The AI sector saw a significant increase in tokens such as FET, AGIX, OCEAN, and PHB. The AI sector has always been ahead of the market in historical market trends, and AI remains one of the most mainstream narratives in this round of market trends. FET, AGIX, and OCEAN will merge tokens on July 15th, and the merged tokens will be ASI. This event may trigger further market volatility and speculation, and investors need to plan ahead.

New coin sector: LISTA rose alone, and the Lista project announced yesterday the start of a new round of mining. LISTA/<a href="/price/bnb-bnb" target="_blank" class="blog_inner_link">BNB</a> mining achieved an annualized rate of 245%. High-yield mining projects can usually attract a large amount of capital inflows and may experience significant growth in the short term.

Blast airdrop: The Ethereum Layer2 project BLAST will start token airdrop at 12:00 (UTC). Airdrop activities usually bring short-term market heat, which may cause fluctuations in trading volume and prices.

Although the market sentiment is sluggish, Altcoins have already rebounded first, and the movements of the ETH ecosystem and AI sector are worth focusing on. There are still many potential investment opportunities in the crypto industry. Investors should closely monitor market trends and reasonably allocate assets to cope with future fluctuations.

## Macro: Technology stocks take turns withdrawing, the S&P 500 and Nasdaq fell, and the Dow rose; Asian stock markets are suppressed by the performance of technology stocks, while Nvidia's stock price decline affects market sentiment
On Monday, the Dow Jones index climbed to a one month high, while the Nasdaq index fell more than 1%. Because investors withdrew from stocks related to artificial intelligence and instead invested in some underperforming stocks, betting that the Federal Reserve will cut interest rates this year.

In terms of specific indices, the Dow Jones index rose 0.66%; The S&P 500 index fell 0.31%; The Nasdaq index fell 1.09%. Although technology stocks withdrew in turn, causing the S&P 500 index and Nasdaq index to close lower, 9 out of the 11 major industry sectors of the S&P 500 index achieved gains.

This week’s main focus of investors is the Personal Consumption Expenditure (PCE) Price Index report released on Friday, which is the preferred indicator for the Federal Reserve to measure inflation. The report is expected to show some easing of price pressure. In addition, data on durable goods orders, weekly unemployment claims, final GDP for the first quarter, and annual Russell index restructuring will also be released this week. Some quarterly earnings reports will also be released one after another.

On Thursday, President Joe Biden will debate with Republican opponent Donald Trump in Atlanta, which may affect the November election, which is currently evenly matched according to opinion polls.

On June 25, in the early trading session of the Asian market, the wave of profit-taking in large US technology and artificial intelligence stocks seemed to be more pronounced. This may suppress investor sentiment and risk appetite in the Asian market on Tuesday, even if turning to affected sectors can partially offset the impact. Before the release of US inflation data on Friday, the market may remain cautious, especially as Friday is also the last trading day of the quarter.

The MSCI Asia Pacific Stock Index rose 0.3% and has fallen 1.4% in the past three trading days. The Nikkei index in Japan rose 0.5%. The Taiwan stock market fell 0.4%. Chinese blue chip stocks rose slightly by 0.1%, while the Hong Kong Hang Seng Index rose 0.9%.

Regarding currency, on Monday, the minutes of the last meeting of the Bank of Japan showed that Japanese decision-makers discussed the possibility of recent interest rate hikes, with one calling for "not delaying too much" to help lower inflation rates. The Japanese yen appreciated slightly on Monday, but the magnitude was still close to 160 yen compared to the US dollar.

In terms of commodities, oil prices have remained relatively stable. The Brent crude oil futures price remained at $85.95 per barrel, while the US crude oil futures price remained almost unchanged at $81.60 per barrel.

The price of gold fell 0.3% to $2,325.52 per ounce.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, 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.
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