OVERVIEW
Est. Reading Time 6min

Welcome back, 👋 

Spiral Strategies checking in with the latest happenings and what to watch for in the coming days.

Buckle up, it’s going to be a crazy week!

• Bitcoin Underperforming 📉

• 4 market-moving events 🔍

• Ethereum at $22,000 - VanEck 🤑

• Upcoming Token Set to 🚀 

BITCOIN UPDATE

Bitcoin’s Lackluster Performance

Bitcoin is hanging around $71,000, staying below the downtrend line.

The 4-hour chart shows slowing buy and sell volumes, keeping Bitcoin range-bound unless something big happens.

Potential catalysts:

• China unbanning crypto

• The US Fed cutting interest rates this month

Bitcoin dominance chart below indicates most investors are sticking with Bitcoin, showing fear in the overall crypto market.

In addition to all of this, the big boys in suits over at the Futures market are setting a new record for short positions in Bitcoin futures, betting big that Bitcoin’s price is going to take a nosedive.

These buzz kills aren’t just party poopers; they’re strategic masterminds using tactics like "basis trading" or "cash and carry arbitrage." Basically, they're making sure they win whether Bitcoin goes up or down.

And that’s why Bitcoin continues to be stuck in a range, bouncing around like a ping pong ball! 😠

MACROECONOMIC NEWS

This Weeks 4 Important Events

Strap on your seatbelts and get ready for the markets to experience some major turbulence with this week's events.

Here is what’s coming up ahead:

1. Economic Data release 📊 

On Tuesday (11th June), the OPEC Monthly Report will deliver insights into global oil production and market trends.

Wednesday (12th June) brings the Consumer Inflation (CPI) report, revealing shopper spending patterns and offering a glimpse into the economy's health.

Thursday's Producer Inflation (PPI) report (13th June) will track production cost stability, crucial for forecasting product price shifts.

Finally, on Friday (14th June), the Preliminary University of Michigan (UoM) Consumer Sentiment report will gauge consumer confidence and spending expectations.

2. Fed Watch 🏛️

June Fed meeting alert! This week, Fed officials are ready to spill the tea on inflation, interest rates, and economic policies.

The markets are betting big a majority currently anticipate a 99.4% probability of no changes and a slim 0.6% chance of a 25 bps rate cut.

Mark your calendars: Chairman Powell takes the stage on Wednesday, June 12.

3. Earning Release 💵 

Large NASDAQ companies like Adobe, Oracle, and Broadcom will be revealing their earnings this week. These announcements are crucial because strong stock results often boost investor confidence, which can spill over into the crypto world.

4. Token Unlocks 🔓️ 

It’s a big week in the crypto world with $210M worth of tokens unlocking across various projects.

• Aptos: $95.8M (1.13% of circulating supply, 2.58% of float) unlocking on Tuesday.

• Arbitrum: $90.8M (0.93% of circulating supply, 3.2% of float) unlocking on Saturday.

• ApeCoin: $8.5M (0.73% of circulating supply, 1.17% of float) unlocking on Saturday.

CRYPTO NEWS

Ethereum to Hit $22,000?

VanEck, a prominent investment firm managing around $100 billion in funds, recently released their Digital Assets forecast, focusing on Ethereum.

According to their analysis, Ethereum (ETH) could reach a base price of $22,000 by 2030, with a bullish scenario projecting up to $154,000.

Here’s why:

• Explosive Growth: Ethereum’s user base has grown by 1,500%, with a 161% compound annual growth rate (CAGR) in revenue since 2019, generating $3.4 billion last year. As more ETH ETFs are approved, this growth is likely to continue.

  

  Source VanEck

• Rising Value: Increased adoption drives up ETH’s value and lowers circulating supply, boosting its price.

• Cost-Effectiveness: While tech giants like Apple and Google take about 30% of app revenue, Ethereum’s fees are currently around 24% and could drop to 5-10% with Layer-2 solutions.

• Lower Transaction Fees: Ethereum’s transaction fees are around 0.001%, much lower than the 2.9% charged by credit card processors like Visa and PayPal.

• DeFi Dominance: Financial applications make up 71% of Ethereum’s revenue, underscoring its leading role in the DeFi sector.

Spiral Strategies Take — It's not farfetched to believe Ethereum can hit $22,000. With upcoming ETF approvals, new adopters will bolster Ethereum's unique burn mechanism, adding jet fuel to its price. For now, it's just a waiting game.

UPCOMING TOKEN

ZKSync — Making Ethereum Faster and Cheaper

Speaking of boosting Ethereum, let’s shift gears and discuss ZKSync which could turbocharge Ethereum even further.

ZKSync aims to turn Ethereum into The Flash of the crypto world. Imagine if Ethereum was your old dial-up internet, and ZKSync just upgraded it to fiber optic speed. 🚀

So, what’s the magic behind ZKSync? "zk" stands for "zero knowledge," which sounds like something out of a sci-fi movie, right? And rollups? Think of them as those giant burritos that pack everything in one neat wrap.

Zero-knowledge proofs (zk-Proofs): These nifty proofs ensure transactions are correct without spilling the beans on all the details.

It’s like having a bouncer who checks IDs but keeps your secrets safe. This boosts security while making everything faster and cheaper.

Layer-2 Rollups

• zk-Rollups: These guys bundle transactions and handle them off Ethereum’s main chain. Using zk-Proofs, they verify everything super quickly. It’s like having a turbocharger on your engine. Secure and efficient but a bit complex under the hood.
  

• Optimistic Rollups: They also bundle transactions but assume everything’s cool unless someone raises a fuss. This reduces congestion and gas fees but can slow down if disputes pop up. Think of them as the laid-back surfer dude of rollups, cruising along unless there's a wave of disputes.

Both zk-Rollups and Optimistic Rollups are here to make Ethereum transactions faster and cheaper. It’s like giving Ethereum a Red Bull and wings! 🦅

FEEDBACK

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