First Line|Bitcoin breaks $71000, altcoins rise; Shibarium developers warn of fake TREAT token; Blockchain Avail secures $43 million in Series A funding; Weak labor data drives global stocks up.

Daily Digest of the Crypto World: Bitcoin breaks $71,000, facing volatility and selling pressure; Shibarium developers warn of counterfeit TREAT tokens; modular blockchain Avail raises $43 million in Series A funding.

First look at the trading activity of Bitcoin ETF. According to Farside Investor data, on June 4th, Grayscale Bitcoin Spot ETF (GBTC) saw a capital inflow of $28.2 million; at the same time, Fidelity Bitcoin Spot ETF (FBTC) saw an inflow of $3.787 billion, Bitwise Bitcoin Spot ETF (BITB) saw an inflow of $61 million, and ARK 21Shares Bitcoin Spot ETF (ARKB) saw an inflow of $138.7 million.

Bitcoin price touches $71,000, volatility and selling pressure imminent

In the past 24 hours, Bitcoin briefly surpassed the $71,000 mark, leading to short liquidations of over $20 million. The current trading price of Bitcoin is approximately $70,853.01, an increase of over 3% in the past 24 hours. The total amount of liquidated Bitcoin positions reached $27 million, while the wider cryptocurrency market experienced over $87 million in liquidations during the same period.

According to Glassnode's market report on Tuesday, selling pressure from long-term Bitcoin holders (holding Bitcoin for 3 months to 3 years) is increasing. The report states, 'If the price rises, the motivation for these holders to sell more supply will increase, thereby increasing their unrealized profits'.

Glassnode also pointed out that in the past 24 hours, the price of Bitcoin has rebounded to over $68,000, leaving only 0.03% of long-term holders in a loss position and forcing most short-term holders to hold unrealized profits. Analysts said the price surge forced most short-term holders to hold unrealized profits again.

After a relatively stable week, it is expected that the volatility of Bitcoin's price will intensify.

Shibarium developers warn of counterfeit TREAT tokens

On June 2nd, DaVinci, a member and developer of the Shibarium team, issued a warning to the community, stating that there were malicious activities online that led to the release of counterfeit TREAT tokens. DaVinci reminded investors and community members that the TREAT tokens currently on the market have nothing to do with the genuine tokens developed by the Shibarium team. The malicious actors also used the official shib.io address in their online posts to add legitimacy to the fake tokens.

CoinGecko also issued a warning on its page, stating that this token has nothing to do with Shiba Inu and its upcoming Layer 3 blockchain, and reminding investors to do their due diligence before trading the token.

The real TREAT token has not yet been issued. It is one of the five tokens in the Shibarium ecosystem, the other three being Shiba Inu, BONE, LEASH, and SHI stablecoin. TREAT token is mainly used as a reward token for rewards from Shiba Lands metaverse and Shiba Eternity card game. It will also be used to help balance the SHI stablecoin that is currently under development. In addition, TREAT will support Shibarium's privacy layer, making users more anonymous on the chain.

Modular Blockchain Avail raised $43 million in Series A financing, and expects Avail DA mainnet and tokens to be launched soon

The modular blockchain project Avail, spun off from Polygon last year, is building a "rollup-centric infrastructure" and has raised $43 million in Series A financing before its mainnet launch.

On Tuesday, Avail announced that the round of financing was led by Peter Thiel's Founders Fund, Dragonfly, and Cyber Fund. Other investors include SevenX Ventures, Figment Capital, Nomad Capital, and Chapter One. Many investors such as Founders Fund and Dragonfly have been long-time supporters of Avail, and this time they have increased their investment in the project.

Avail's Series A financing took place three months after the company raised $27 million in seed funding in February. In an interview with The Block, co-founder Anurag Arjun said that this financing brings Avail's total funding to $75 million, including $5 million in pre-seed funding.

Arjun revealed that the Series A financing was completed last week using a combination of SAFE (Simple Agreement for Future Equity) and SAFT (Simple Agreement for Future Tokens). However, he declined to comment on the valuation; sources said that Avail was fully diluted to a valuation of hundreds of millions of dollars when it raised seed funding in February.

Currently, Avail DA is in the incentive test net phase, reportedly with 310 validators at peak, creating nearly 110,000 accounts and processing 116 million transactions. Arjun said the Avail DA mainnet is expected to launch in the coming weeks along with the AVAIL token.

Market Analysis: BTC Approaching Historical High, Altcoins Rising Across the Board

Market Trends

1. BTC: Breaking $71,000, approaching historical highs. This indicates that the market demand for Bitcoin remains strong, possibly driven by the continuous net inflow of Bitcoin spot ETF.
2. ETH: Breaking through $3,800, showing a strong upward momentum. The rise of ETH may be related to the continuous expansion of its ecosystem and the progress of Layer 2 solutions.
3. Altcoins Rise Across the Board: This is usually a signal of market optimism, with investors shifting to higher-risk altcoins after profiting from mainstream cryptocurrencies.

Macroeconomics

1. The US Dollar Index Falls: A weakening US dollar usually bodes well for the cryptocurrency market, as cryptocurrencies are seen as assets that hedge against dollar depreciation.
2. Rising US stocks: The rise in the stock market and improved employment data have increased market expectations of interest rate cuts, which may further drive investors into risk assets, including cryptocurrencies.

Market Hotspots

1. BTC ecosystem projects generally rise: Projects such as CKB, STX, ORDI, and PUPS surged, demonstrating market confidence in the Bitcoin ecosystem. In particular, the Ethereum layer2 project STRK announced its expansion to the BTC Layer 2 track, which may bring more innovation and applications.
2. BNB and its ecosystem projects: BNB broke through $700, hitting a new all-time high, driving ecosystem projects such as CAKE, XVS, and BAKE to follow suit. UNI's sharp rise and the major event hinted at by its official account also attracted high market attention, possibly related to its settlement with the US SEC, which would be a major positive development.
3. TON ecosystem: The sharp rise of TON and NOT has driven the rise of the ecosystem meme coin FISH, demonstrating investors' confidence in the TON ecosystem. FISH's market value is only 1% of NOT's, but its intraday increase exceeds 100%, showing the market's high-risk preference for small-cap tokens.

The strong performance of the current cryptocurrency market is mainly benefited from the rise in the prices of Bitcoin and Ethereum, the improvement of market liquidity, and the support of the macroeconomic environment. In addition, the concentrated outbreak of market hotspots, such as the performance of BTC ecological projects and BNB chain ecological projects, has also brought more investment opportunities to the market.

Macro: Labor market data is weak, US stocks closed slightly higher; Asian stocks rose on interest rate cut expectations; India becomes the focus

On June 4, Tuesday, Reuters reported that the US stock market closed slightly. The latest data showed that the US economic growth slowed, further supporting expectations of a Fed rate cut due to soft labor market data.

Monday's data showed that US manufacturing activity slowed for the second consecutive month in May. Data released on Tuesday showed that US job vacancies fell to the lowest level in over three years in April, indicating some easing in labor market tightness and supporting expectations of a rate cut by the Federal Reserve this year. Following the release of the report, US Treasury yields declined. Nonfarm payroll data for May will be released on Friday.

Technology stocks represented by companies such as Amazon, Alphabet, Nvidia, and Microsoft rebounded at the close after falling in early trading.

In the currency market, the dollar stabilized on Wednesday as traders cut back on high-risk bets in emerging markets while waiting for Canada's interest rate decision and U.S. service sector data. In early Asian trading, the yen fell 0.2% to 155.27 against the euro. The euro against the dollar rose 1% overnight, marking its biggest gain in a month.

Wednesday's data also showed that real wages in Japan continued to decline for the 25th consecutive month in April, as the inflation rate exceeded nominal wage growth. The yen is the worst-performing G10 currency this year, with the deputy governor of the Bank of Japan stating that the central bank must be "highly vigilant" about the potential impact of yen weakness on the economy and inflation.

On Wednesday, June 5th, Asian stocks rose. The weak US labor market strengthened market expectations for a rate cut by the Federal Reserve in September, and the US dollar remained stable. Concerns about a cooling US economy suppressed risk appetite, and attention in Asia turned to the situation in India.

The Indian election results show that the victory margin of Indian Prime Minister Narendra Modi is lower than expected, leading to a decline in the Indian stock market and depreciation of the rupee. Because this is the first time in ten years that the Bharatiya Janata Party (BJP) led by Modi has lost the majority seats in parliament and needs to rely on regional allies to secure the seats required to govern the world's largest democracy. This has raised uncertainty about economic policy predictions, including promoting investment-led growth, which has been the cornerstone of the Modi government's governance.

MSCI Asia-Pacific stock index rose 0.24%, while the Nikkei index fell 0.8% as the yen approached a two-week high.

The Chinese stock market has seen mixed gains and losses. A private sector survey released on Wednesday showed that the growth rate of China's service sector activity in May was the fastest in 10 months, and the number of employees increased for the first time since January, indicating that the service sector will continue to recover in the second quarter. The blue-chip SSE 300 Index in Shanghai and Shenzhen remained almost unchanged in early trading, while the Hang Seng Index in Hong Kong rose by 1%.

The Caixin/Markit Global Services Purchasing Managers' Index (PMI) rose from 52.5 in April to 54.0, expanding for the 17th consecutive month at the fastest pace since July 2023.

In terms of commodities, oil prices fell slightly in early Asian trading due to a industry report showing an increase in US crude and fuel inventories, exacerbating concerns about demand. Brent crude futures fell 0.1% to $77.47 per barrel, while US West Texas Intermediate crude futures fell 0.12 cents to $73.16 per barrel.

Gold prices rose 0.09%, to $2,330 per ounce.

Author: Sherry S. & Icing. This article represents only the author's point of view and does not constitute any trading advice. This article is original and the copyright belongs to Gate.io. If you need to reprint, please indicate the author and source, otherwise legal responsibility will be pursued.