[Weekly News] The 1st week of Jun.
[Weekly News] The 1st week of Jun.
Hello! It is ReapChain.
Let’s learn about the hottest Bitcoin and cryptocurrency news for the first week of June!
Japan’s Mitsubishi UFJ Financial to Issue Yen-pegged Stablecoin
Foreign media reported that Japan’s largest financial group, Mitsubishi UFJ Financial Group (MUFJ), plans to issue a stablecoin linked to the Japanese yen next year. According to reports, MUFJ plans to issue stablecoins through a partnership between its affiliated stablecoin platform Progmat and blockchain interoperability startup Datachain. MUFJ said, “We plan to proceed with the project by the amendment to the Payment Service Act to promote the issuance and distribution of stablecoins in Japan, which took effect on June 1 (local time). As a result, it plans to issue yen-based stablecoins on multiple blockchain networks in the second quarter of 2024. In addition, we will support cross-chain swaps, cross-chain payments, and cross-chain lending for users.”
CME FedWatch “65.6% chance of interest rate freeze in June.”
According to CME Fedwatch, the US Chicago Mercantile Exchange, traders predict a 65.6% chance that the U.S. Federal Reserve will keep its policy rate unchanged at the FOMC meeting in June. Also, the possibility of a 25bp rate hike is 34.4%.
Bloomberg Report: “Bitcoin’s Worst Times Are Not Over Yet”
In a recent report, Bloomberg researcher Mike McGlone analyzed that “Bitcoin’s worst times may not be over yet.” McGlone said, “Looking at the current situation, such as the U.S. Fed’s stance, it seems difficult for Bitcoin to rise. While the possibility of an aggressive rate hike by the Fed still exists, the overall market outlook is negative. Looking at the 52-week moving average, Bitcoin has yet to break out of the down cycle. As a result, Bitcoin’s ability to hedge against downside pressures on the U.S. economy is being questioned. In addition, Bitcoin is still considered a young, high-risk asset. In a recession cycle, high-risk assets such as cryptocurrencies are easily affected.”
Analysis “Whale Wallet, Betting on ETH/BTC Exchange Rate with Circular Loan”
EmberCN (Twitter account), a famous Chinese on-chain data analyst, analyzed that “a whale wallet is conducting a circular loan betting on the ETH/BTC exchange rate.” It was found that the whale wallet deposited ETH in Aave borrowed WBTC, transferred it back to Binance, converted it to ETH, and deposited it in Aave. As a result, the wallet deposited 29,031 EHT and loaned 1100 BTC to Abe on May 26.
Analysis “Bitcoin market net inflow begins.
On-chain analytics firm Glassnode analyzed that “Bitcoin markets are starting to record net inflows.” Glassnode diagnosed, “After a considerable period of capital outflow, Bitcoin Realized Cap is beginning to stabilize, and net capital inflows are appearing again.” Still, Glassnode explained, “However, compared to previous bull markets, this trend is in its infancy in both duration and magnitude.”
The average daily trading volume of Grayscale GBTC in May is the lowest since December 2019
According to The Block Pro data, the average daily trading volume of GBTC, a bitcoin investment trust operated by Grayscale Investments, the world’s largest cryptocurrency asset management company, recorded about $26 million last month. This is a 38.2% decrease from the previous average daily trading volume and the lowest monthly average daily trading volume since December 2019.
U.S. House of Representatives members propose bills, such as specifying the classification of cryptocurrency products and securities.
According to The Block, U.S. Congressman Patrick McHenry and others proposed a plan to register cryptocurrency exchanges with the U.S. Securities and Exchange Commission (SEC) and to allow digital securities, commodities, and stablecoins to be traded on one platform. They announced a draft bill to establish a cryptocurrency guardrail, including provisions enabling the SEC to differentiate between commodities and securities while allowing regulated cryptocurrency companies to assert that their assets are commodities. Companies must demonstrate that the asset is decentralized by explaining in detail how the asset works and proving that no one is leading the project or owning more than 20% of the asset. However, in the case of a cryptocurrency platform that has obtained the qualification as an alternative exchange for digital asset securities (ATS), it is explained that it is relatively less important whether the asset is a product or a security as stablecoins and products can be traded within the platform. The media evaluated it as “a bill that provides more flexibility and specific guidelines for cryptocurrency.” Republicans proposed the bill and have yet to gain support from Democrats.
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