OVERVIEW
Est. Reading Time 5min

We know it’s been a tough week 😢 

But don’t fret, Spiral Strategies is here to brighten your outlook and prepare you for what’s next.

• Crypto Hit Hard 📉

• Institutions Dropping Bitcoin 🔍

• ZkSync Giveaway 🤑

MARKET NEWS

Risk Assets Hit Hard

The crypto world saw a massive $600 million in outflows, mainly from Bitcoin. It's like everyone suddenly decided to leave the party early. The culprit? The Federal Open Market Committee (FOMC) flexing its hawkish muscles, making investors more cautious than a cat near water.

The Fed’s latest stance? Not so friendly for high-risk assets like crypto. They hinted at fewer rate cuts this year, which isn’t great news for investors.

This shift in tone followed a brief cheer from a softer US Consumer Price Index (CPI) report.

Bitcoin took a hard hit, with $621 million in outflows, shrinking total assets under management from $100 billion to $94 billion in just a week.

Meanwhile, altcoins continue to fall like a dramatic in a Bollywood star. Total altcoin market cap has now dropped $600 Billion. Ouch.

Regionally, the US led the outflows with a whopping $565 million, followed by Canada, Switzerland, and Sweden. But, it's not all doom and gloom.

Ethereum is getting some love thanks to rumors of ETH spot ETFs launching soon, possibly by July 2. Bloomberg’s Eric Balchunas even expects these ETFs to get the green light before the July holidays in America.

Buy more crypto now?

The current market is unruly and dangerous. If you're thinking of adding more altcoins, beware: the market could still drop. Remember, “don’t catch a falling knife.”

How should you act?

Stay patient. The period from May to November is traditionally bearish. This is business as usual. The crypto rollercoaster continues, so buckle up and keep an eye on macroeconomic moves!

The crypto rollercoaster continues, so buckle up and keep an eye on those macroeconomic moves!

BITCOIN NEWS

Institutions dropping Bitcoin?

Bitcoin adoption is moving slower than a snail on a lazy Sunday. Fidelity’s Jurrien Timmer, our crypto Yoda, says it’s because Bitcoin’s network growth is lagging behind its skyrocketing prices.

Think of Bitcoin as Tony Stark with all the potential to be Iron Man, but without the fully charged arc reactor (network growth), it can't quite save the day.

Timmer compares Bitcoin to "exponential gold" and says its price is as moody as a teenage superhero. Despite its fame and institutional fans, Bitcoin’s network needs to grow faster.

Advent of Bitcoin Layer 2 solutions

Bitcoin Layer 2s are like side roads that reduce traffic on the main highway, helping process transactions more efficiently.

These layers handle transactions and then send the details back to the main Bitcoin network for final approval, ensuring the same security and decentralization.

Layer 2 solutions use technologies like rollups to boost efficiency, handling many more transactions at once. They make Bitcoin faster and more scalable while relying on the main network for security.

Layer 2s also bring new possibilities like smart contracts, adding versatility to Bitcoin beyond just transferring funds.

TOKEN RELEASE

ZkSync Token Giveaway

The ZKsync Association is about to drop a massive 3.675 billion ZK tokens to its community starting June 24. But what’s ZKsync? Let’s break it down.

ZKsync is a scaling solution for Ethereum, like giving your car a turbo boost. It uses zero-knowledge proofs to make transactions faster and cheaper while keeping them secure.

This airdrop isn’t just any giveaway, these ZK tokens make up 17.5% of the total supply and will be available until January 3, 2025. Once you claim your tokens, you can use them to vote on upgrades and pay for network fees. It’s like getting a VIP pass to shape the future of the platform!

ZKsync is a top solution, managing over $750 million in assets. They’re serious about community involvement, giving out more tokens in this airdrop than to their own team or investors.

Nearly 700,000 wallets are eligible for this airdrop, with tokens mostly going to users and a smaller chunk to contributors.

Each wallet can get up to 100,000 tokens, with points earned through activities like using smart contracts and trading determining how many tokens you get.

FEEDBACK

We appreciate you taking the time to read our newsletter. Your feedback is valuable to us, let us know your thoughts!