Daily News | Stock Price of BTC Miners Rose by 10% Due to Trump's Support; Layer3 Announced the Fundraising of $15M in A-round Financing; Terraform to Pay a Fine of $4.47B to SEC

Crypto Daily Digest: After Trump promised to support American miners, the stock price of Bitcoin miners rose by 10%; Layer3 announced the fundraising of $15 million in A-round financing before the token release and airdrop; Terraform has agreed to pay $4.47 billion in proposed judgment to the SEC

First, let’s examine the trading activity of Bitcoin ETFs. According to Farside Investor data, on June 12, Fidelity Bitcoin spot ETFs (FBTC) received an inflow of $50.6 million, Bitwise Bitcoin spot ETFs (BITB) received an inflow of $14.5 million, and ARK 21 Shares Bitcoin spot ETFs (ARKB) received an inflow of $8.5 million.

The stock price of Bitcoin miners rose by 10% after Trump promised to support American miners
On Wednesday, the second day after US presidential candidate Donald Trump promised to strengthen US mining operations, Bitcoin mining stocks rose sharply.

Trump stated in a June 12 post that he hopes “all Bitcoin will be produced in the United States!!!” and that this will help the United States dominate the energy sector. Trump said this statement was made after meeting with some industry executives.

According to reports, Trump also promised these executives that if he is elected president in November, he will fully support the industry. According to data from Google Finance, TeraWulf (WULF) and Hut 8 Mining (HUT) are the top ten Bitcoin miners with the largest increase in market value, rising 10.5% and 10.07%, respectively on June 12. Core Scientific (CORZ), Iris Energy (IREN), and Cipher Mining (CIFR) rose 9.87%, 9.72%, and 8.94%, respectively.

On June 11, Trump discussed with several industry executives at Haihu Manor how Bitcoin mining can strengthen the power grid and create more job opportunities. The participating executives expressed that the meeting experience that evening was very positive.

Layer3 announced fundraising of $15 million in A-round financing prior to token release and airdrop
The token distribution protocol Layer3 is about to undergo token issuance and airdrops. On Wednesday, Layer3 announced that it has successfully raised $15 million in A-round financing. The company also raised $2.5 million in 2021, and its previously undisclosed $3.7 million strategic financing was raised by companies such as Electric and ParaFi in 2022. The A-round financing brought the total financing amount of Layer3 to $21.2 million.

On Wednesday, Layer3 stated that this financing round is led by ParaFi and Greenfield Capital, with companies such as Electric Capital, Immune, Lattice, Tioga, LeadBlock, and Amber also participating. The co-founders of Layer3 stated that the project started raising funds for this financing round in April and ended in May. This round of financing adopts a structure of equity and token warrants, but the valuation has yet to be disclosed.

Layer3 is a token distribution protocol that enables projects to distribute tokens to attract and retain users. It unifies user activities between multiple blockchains and applications, allowing the protocols to allocate tokens more effectively.

Layer3 announced A-round financing, coinciding with the launch and airdrop of its native token L3 this summer. Last month, Layer3 launched the governance and utility token L3, with a total supply of 300 million. The initial airdrop will distribute 5% of the total supply, or 15 million tokens, to early adopters and CUBE minters. Kumar stated that CUBE is a “dynamic NFT” minted after completing the task.

The airdrop snapshot was taken on May 10. Layer3 has allocated 51% of the total supply to the community, while detailed information on the remaining allocations has yet to be disclosed.

Layer3 is still developing a new AI protocol to optimize token distribution strategies, which is expected to be launched later this year. Kumar stated that the AI protocol will open up new ways for project issuance and distribution of tokens, and make Layer3 more personalized to cater to end consumers.

Terraform has agreed to pay $4.47 billion in proposed judgment to the SEC
The US Securities and Exchange Commission (SEC) submitted a proposed final approval ruling on Wednesday, requesting Judge Jed Rakov of the Southern District Court of New York to approve the Terraform plan.

In February 2023, the SEC filed charges against Terraform and Do Kwon over the algorithmic stablecoin Terra USD (USD) that had collapsed a year ago, claiming that they had deceived and misled investors. The two sides argued endlessly about the amount of compensation. According to the current proposed ruling, Terraform will pay $3.58 billion in illegal gains and $420 million in civil fines, prohibiting Do Kwon from becoming an executive or director of any listed company.

The SEC previously believed that Do Kwon would have to pay approximately $204 million to the Terraform bankruptcy estate to distribute to damaged investors.

Market Trends

BTC rebounded close to $70,000 after the release of CPI data but fell below $68,000 after a speech by Fed Chairman Powell. This shows the market’s high sensitivity to macroeconomic data and policy changes.

ETH also fell back to around $3,550 after a significant rebound.

Altcoins: Despite the sharp decline in BTC and ETH in the early morning, Altcoins still maintained a good increase, which may indicate that investors are looking for other high-risk and high-return investment opportunities.

Macroeconomics

US stocks surged: US stocks continued to hit historic highs, reflecting investors’ Optimism about the future economic outlook.

CPI data: The CPI data has dropped to a 3-year low, stimulating an increase in the risk asset market and indicating that inflationary pressure may weaken.

Fed Policy: The dot matrix shows that interest rates will only be lowered once this year and are expected to be lowered four times in 2025. This indicates that the Federal Reserve still maintains a cautious attitude toward monetary policy.

Market Hotspots:

DePIN concept leader IO: IO surged nearly 50%, breaking through $6, with a high vacancy rate of -0.1% in the contract market. Community sources have revealed that IO may soon launch a staking function, which may further stimulate its price increase.

The AI concept sector has rebounded significantly under the leadership of US technology stocks, with LPT, RNDR, ARKM, and other sectors performing well. The rebound may be due to the market’s optimism about future technological development.

BTC In_script_ion PIZZA: PIZZA surged by 20%, with a significant increase in holdings of top addresses. As the first Meme of Unisat Wallet, PIZZA currently has a market cap of nearly $150 million and ranks 405th.

Meme concept tokens: Meme tokens have performed more prominently in the market rebound. The MOTHER and MANEKI of Solana chain rebounded by more than 20%, and the MAGA of Eth chain rebounded by more than 30% at one point. It is rumored that Trump has more popular support in the presidential election, which may have a driving effect on the related Meme tokens.

The current market has high volatility, and investors must operate cautiously. The volatility of the crypto market is particularly noteworthy, especially under the influence of macroeconomic data and policy changes. Investors should closely monitor market hotspots and trends while managing risks when participating in the market.

Macro: The S&P 500 index and Nasdaq index hit new closing highs impacted by CPI and the Fed

The important economic data released on June 12 came as a surprise - the US Department of Labor reported that the Consumer Price Index (CPI) remained unchanged in May due to a decrease in gasoline prices.

The weaker-than-expected inflation data drove the stock market higher at the opening, with the S&P 500 index and Nasdaq index hitting new closing highs for the third consecutive day on Wednesday. However, due to the Federal Reserve’s forecast of only one rate cut this year, these two indices ultimately fell from their daily highs.

The main indicators are as follows: the Dow Jones index fell 0.1%, the S&P 500 index rose 0.9%, and the Nasdaq index rose 1.5%.

The Fed has concluded a two-day policy meeting, decided to keep interest rates unchanged, and issued a policy statement and Summary of Economic Projections (SEP). After Federal Reserve Chairman Jerome Powell delivered a speech at a press conference, the stock market fluctuated, with the S&P 500 and NASDAQ indexes reducing their gains in late trading, and the Dow Jones index closing close to flat. After releasing the CPI report, traders increased their bets on the Fed’s interest rate cuts in September and December.

The revised outlook of the Federal Reserve includes a decrease in the number of interest rate cuts this year, a slight increase in unemployment rate, and an increase in long-term policy interest rates, which led to a significant cooling in the stock market, foreign exchange, and fixed income markets in the later trading hours of Wednesday in the United States. The Federal Reserve’s forecast for March includes three interest rate cuts, each by 25 basis points. At the end of the meeting from June 11 to 12, the statement mentioned maintaining policy interest rates unchanged, consistent with market expectations.

On June 13, the Asian market will likely receive a boost as lower-than-expected US inflation rates have triggered investor risk appetite and asset price fluctuations. However, as the Federal Reserve’s new economic forecast leans towards a hawkish stance, it may limit this momentum.

Recently, the cumulative effect of Chinese assets has been significant. The significant decline in the stock market and RMB has prompted state-owned banks to sell the US dollar to support the RMB, sparking investor doubts about China as an investment destination. The Chinese stock market has fallen 5% in the past three weeks, twice as much as the MSCI Asia (excluding Japan) index, and has performed far worse than the largely flat Nikkei index in Japan and the record high US and global stock markets.

In the currency market, Asian currencies strengthened against the US dollar on Thursday, except for the Japanese yen, due to lower-than-expected US inflation. Prior to the Bank of Japan meeting, and as US policymakers hinted that interest rates would remain high for some time, the yen remained under pressure.

Regarding commodities, oil prices fell early Thursday as investors digested news that the Fed would not cut interest rates in the near future. Sufficient US crude oil and fuel inventories further put pressure on the market. Brent crude oil futures fell 0.17% to $82.46 per barrel, while West Texas Intermediate (WTI) futures fell 0.2% to $78.34 per barrel.

The price of gold slightly increased after the Fed updated its economic forecast, with spot gold rising 0.2% to $2,320.76 per ounce.