ACQUIRE.FI MARKET ANALYSIS

Week Ahead: Crypto assets rebound ahead of holiday-shortened but busy macro week

BTC and ETH recovered after falling under significant support levels and the worst quarterly return since inception. BTC fell below $20K on Thursday but rose back to above the resilient price level during the weekend. Some analysts forecast BTC to reach $28K before the end of the year if the correlation with global equities increases.

US equities fell last week under pressure from the high probability of a Fed monetary policy mistake even as inflation continues to cool down. The US dollar rally also paused ahead of this Friday’s US jobs report at the end of the week.

Celcius Network pausing withdrawals and 3AC served with a default notice from Voyager Digital early last week that could lead to liquidation remained as crypto headwinds. Tailwinds include VC funding rising by $5B in May and June, according to JPMorgan, and solid crypto companies limiting the contagion.
Celsius Network said to be exploring options after freezing withdrawals last month. Deals, restructuring, and bankruptcy remain on the table. Coinbase to expand in France, Italy, Spain, and the Netherlands. The news came after the European Union announced a new provisional framework where crypto companies will need to obtain a license from a single regulator and offer customer safeguards to issue and sell digital tokens in the 27 countries that make up the Eurozone.

Tether said it reduced risk exposure by selling part of its commercial paper holdings on its way to zero to address concerns about the quality of assets backing the token. Short sellers have begun to target the token after the TerraUSD debacle, with Tether’s CTO reiterating it has never failed a redemption, and its portfolio is stronger than ever.

FTX said there was no active M&A conversation with Robinhood after speculating a possible acquisition after Sam Bankman-Fried’s 7.6% stake in the trading platform was revealed. Grayscale sued the SEC after the regulator ruled the spot bitcoin ETF proposal did not meet fraud prevention standards. Grayscale said the lawsuit would probably be decided within a year, with the company CEO highlighting the SEC has approved BTC futures-based ETFs while denying spot BTC ETFs.