OTC Weekly Trading Insights (06/20/2024)

Convex Finance protocol is based on Curve Finance ($CRV) and complements it by allowing liquidity providers to earn higher rewards. The Convex Finance protocol has its own native token, $CVX. Following the large liquidation of the CRV loan on Aave ($AAVE), the CRV supply in the market increased, and many CRV holders converted their CRV tokens into veCRV and earned higher yields on the Convex protocol. $CVX experienced an over 100% surge last Sunday, indicating strong market demand for this token. The recent launchpool project io.net ($IO) is a leading cryptocurrency project that focuses on the DePin aspect. In the backdrop of AI and GPU hype, io.net provides users with on-chain access to global GPUs. It is not surprising that $IO is in high demand after GPU producer Nvidia surpassed Apple and Microsoft to become the highest market capitalization company. After the SEC confirmed that it had concluded its investigation into Ethereum 2.0 following the approval of the 19b-4 forms of ETH ETF applications, investors piled into Ripple ($XRP), hoping for an XRP ETF in the future. The strong market demand for $XRP pushed its price up 1.2% last week, while the majority of top-ranked cryptocurrencies saw a negative return. Overall Market The above chart shows the BTC price movement with the 8H chart. Despite the strength of the US equity market, the price of Bitcoin fell further. The S&P 500 and Nasdaq indices both reached new all-time highs in recent days, with Nvidia surpassing Apple and Microsoft to become the US stock exchange's largest market capitalization stock. The market sentiment for risk assets is fairly bullish in the traditional finance world, but our desk sees a completely different story in the crypto market. After BTC fell below the upward trendline (the red line) mentioned in previous posts, bearish sentiment spread throughout the cryptocurrency market. Altcoins experienced a significant capital outflow. While BTC fell more than 3% in the last seven days, many altcoins, across various chains and categories, experienced a 20%-30% decline.  The crypto market saw a boost in ETH and restaking projects after the SEC confirmed that they had closed the investigation on ETH 2.0 after passing the 19b-4 form of ETH ETF applications. However, the BTC price did not show a significant recovery.  BTC is currently forming a falling wedge in the 8-hour chart. If it can break above the falling wedge (the blue lines) with large volumes, it may indicate that BTC is ready to recover the loss and have another test to the $73k resistance. If the breakout fails, we could see another two weeks of consolidation here, with BTC finding strong support at $61k (the red area). Macro at a glance  Last Thursday (24-06-13) In May, the US PPI fell 0.2% month on month, compared to an expected 0.1% increase and a 0.5% increase in April. The lower-than-expected PPI could lead to lower inflation, increasing the likelihood of the Federal Reserve cutting interest rates in September. US initial jobless claims reached a nine-month high of 242k, exceeding the estimated 225k and last week's 229k. The recent increase in initial jobless claims suggests that the tight labour market in the United States is easing. The Bank of Japan maintained its interest rate at 0.1%, unchanged. According to the statement, the Bank of Japan may reduce its purchases of Japanese government bonds after the next monetary policy meeting, which is scheduled for the end of July. USD/JPY rose to 158.2 from 157.3 prior to the announcement.  On Monday (24-06-17) The Reserve Bank of Australia maintained the interest rate at 4.35%, unchanged. Governor Michele Bullock emphasized that high inflation was harming the economy and that lowering inflation was the top priority for the RBA. She stated that the RBA did not consider a rate cut case in this meeting, and the case for an interest hike was not increasing. On Tuesday (24-06-18) In May, the eurozone's CPI increased by 0.2% month over month, down from 0.6% in April. The annualized CPI growth rate in May was 2.6%, up from 2.4% in April. The core CPI growth rate increased by 2.9% on an annual basis, up from 2.7% in April. In May, US retail sales increased by 0.1% month on month, falling short of the expected 0.3% growth but improving on April's 0.1% decrease. Core retail sales fell 0.1% month over month in May, falling short of the expected 0.2% increase. In May, the UK CPI rose by only 0.3% month on month, falling short of the expected 0.4% increase. In May, the annualized CPI growth rate was 2.0%, which was lower than Apirl's figure of 2.3%.  Later this week, we have Bank of England interest rate decision on Thursday Convert Portal Volume Change The above table shows the volume change on our Convert Portal by zone.  This week, with optimism that the S1 form of ETH ETFs will be approved at the beginning of July, ETH restaking sections outperformed the market, and trading volume in the Liquid Staking zone increased by 51.1%. Last week, our desk noticed a surge in demand for Arweave ($AR), resulting in the largest trading volume increase among all tokens in the Storage zone. Last week, trading volume in the DeFi zone fell by 19.9% on Convert. While many tokens in this zone saw a volume drop, Convex Finance ($CVX) outperformed the market, with a significant volume increase as demand surged. As the Euro Cup continues, our desk has seen a surge in demand for fan tokens. The demand for Paris Saint-Germain Fan Token (PSG) has the highest volume increase in the Fan Token zone.  Why trade OTC?   Binance offers our clients various ways to access OTC trading, including chat communication channels and the Binance OTC platform (https://www.binance.com/en/otc) for manual price quotations, Algo Orders, or automated price quotations via Binance Convert and Block Trade platform (https://www.binance.com/en/convert) and the Binance Convert OTC API.  Email: [email protected] for more information. Join our Telegram (https://t.me/BinanceOTC) to stay up to date with the markets!