First look|BTC option bullish buying may push prices to $74,000; Paxos will issue interest-bearing stablecoin USDL; stablecoin minting protocol M^0 raises $35 million in financing; global markets are up.

Crypto World Daily Summary: Bullish buying pressure in BTC options concentration may help price break new highs; Paxos International will issue regulated interest-bearing stablecoin USDL; Stablecoin minting protocol M^0 raises $35 million in funding.

Looking at the trading activities of Bitcoin ETF, according to Farside Investor data, on June 5th, Grayscale Bitcoin Spot ETF (GBTC) continued to receive a capital inflow of 14.6 million US dollars; at the same time, Fidelity Bitcoin Spot ETF (FBTC) had an inflow of 220.6 million US dollars, Bitwise Bitcoin Spot ETF (BITB) had an inflow of 18.5 million US dollars, and ARK 21Shares Bitcoin Spot ETF (ARKB) had an inflow of 71.4 million US dollars.

Bitcoin options traders expect prices to hit a new high, surpassing $74,000

Market data shows that Bitcoin (BTC) options traders are constantly betting on the asset reaching new highs this month. Digital asset hedge fund QCP stated in its market update on Wednesday: "Our trading department has seen a strong bullish trend, with a large number of call options expiring in June being purchased, indicating that the options market may break the historical high of $74,000 this month."

Joshua Lim, co-founder of Arbelos Markets, the main trading company for encrypted derivatives, pointed out that the call options buying interest on Tuesday was very concentrated, with about 1,100 call options contracts expiring on June 28 being bought at exercise prices ranging from $74,000 to $80,000, equivalent to a nominal demand of about $80 million.

Institutional encryption derivatives trading network Paradigm stated in a Telegram broadcast: 'Today's options flow is significantly bullish, with a large long scale of BTC price difference outside the bullish price at the end of June, and a smaller scale at the end of July.'

Matrixport pointed out that breaking the $72,000 level may trigger shorts squeeze, as leveraged futures contracts worth about $1.5 billion betting on lower prices are concentrated in this range, which may be liquidated, thereby exacerbating the pump trend.

Paxos International will issue regulated interest-bearing stablecoin USDL

Paxos International is issuing an interest-bearing stablecoin called Lift Dollar (USDL). USDL will be regulated by Abu Dhabi Global Market (ADGM) and will pay overnight returns based on the interest earned by Paxos International on its backing reserves.

USDL will be backed by a reserve of liquid US government securities and cash equivalents in a 1:1 ratio as required by the ADGM Financial Services Regulatory Authority. Paxos International will not earn interest on these reserves, but will charge issuance fees to token holders.

Paxos also announced that USDL will be available in Argentina through distributors Ripio, Buenbit, Manteca, and Plus Crypto.

Paxos claims that USDL is a pioneer among similar products. The Ethereum smart contract will use a mechanism called 'rebasing' to automatically allocate the profits of USDL according to market conditions. According to Bloomberg, the yield will reach around 5%. Paxos International stated in a statement that USDL is the first regulated stablecoin with interest. Stablecoin holders can also earn interest through staking, restaking, and yield farming.

Bain Capital Crypto leads $35 million Series A funding round for stablecoin minting protocol M^0

M^0 (M Zero) is a decentralized stablecoin minting protocol that raised $35 million in Series A financing led by Bain Capital Crypto. The official announcement states that it has been deployed on the Ethereum mainnet and will go live in the coming weeks.

M^0 is a stablecoin minting protocol based on Ethereum, where approved entities can create a stablecoin called M, which is “only over-collateralized by US Treasuries”. To mint M, entities need to obtain permission from the protocol management. Once approved, they will provide their own standardized “high-quality” collateral, which validators will inspect to ensure it meets the standards.

On Wednesday, M^0 announced that other investors in this round of financing include Galaxy Ventures, Wintermute Ventures, GSR, Caladan, and SCB 10X. Luca Prosperi, Chairman of the M^0 Foundation Board, stated that this round of financing is in the form of equity and tokens, and M^0 has issued two types of governance tokens - POWER and ZERO, but they are subject to a lock-up period.

M^0's Series A financing took place a year ago, in April 2023, when the company raised $22.5 million in seed financing led by Pantera Capital. The Series A financing brought M^0's total funding to $57.5 million. Prosperi pointed out that the demand for Series A financing was 2.5 times the amount raised.

Market Analysis: BTC consolidates at high levels, alts rise across the board

Market Trend

1. BTC: BTC is consolidating around $71,000 and may be looking for a new direction. The consolidation period is usually a reflection of market sentiment, and investors should closely monitor key support and resistance levels. The inflow of nearly $900 million in spot ETF indicates strong interest from institutional investors, potentially signaling future upward potential.
2. ETH: Surpassing $3,850: The breakthrough of ETH may trigger further pump, especially driven by Layer 2 solutions and DeFi projects.
3. BNB: BNB broke through $700, reaching a new all-time high, demonstrating strong market demand. Projects in the BNB ecosystem (such as BB, BURGER) have also benefited from this.

Macroeconomics

1. U.S. Stocks Soar: The strong performance of the stock market typically boosts the investment sentiment of risk assets, including cryptocurrencies.
2. Rate Cut Expectations: The market's expectation of a rate cut in September has increased to 70% in the United States, and the Bank of Canada has already cut interest rates. This may lead to more funds flowing into high-risk assets such as cryptocurrencies.

Market Hotspots

1. Meme Zone: SLERF, GME, PEOPLE and other assets have performed well, with gains exceeding 20%. Investors can follow these high-volatility assets, but should pay attention to risk management.
2. BNB ecosystem: Projects such as BB and BURGER benefit from the pump of BNB and may have further upside potential. Consider looking for investment opportunities in these projects.
3. Pow Zone: KAS pump 20% to hit a new all-time high, may introduce the krc20 standard in the future. Similar to Ethereum's erc20 standard, this may attract more projects to be issued on-chain on the Kas.
4. TAIKO: Listed on Gate.io, but the price performance is average. Market Cap of 2.5 billion USD, which may be considered overvalued, investors should be cautious.

Overall, the current market is strong, but the cryptocurrency market has high volatility, and investors should be mentally prepared.

Macro: Data supports Fed easing, S&P 500 and Nasdaq hit record highs, global stock markets pump

On Wednesday, June 5th, driven by technology stocks, the S&P 500 and the Nasdaq reached new closing highs. The market digested economic data that could support the expected policy easing cycle by the Fed.

Performance of the indices: Dow Jones Industrial Average rose by 0.25%, S&P 500 rose by 1.18%, Nasdaq rose by 1.96%.

The May private employment report released on Wednesday showed that the tight labor market situation has eased, which may prompt the Fed to start cutting interest rates this year. Tuesday's report indicated that the number of job vacancies in April fell to the lowest level in more than three years.

Technology stocks lead the 11 sectors of the S&P 500, followed by the communication stocks and industrial stocks. The chip sector pumped 4.5%, driven by Nvidia and Taiwan Semiconductor Manufacturing Company. Nvidia's market capitalization exceeded $30 trillion for the first time, surpassing Apple to become the world's second most valuable company.

The strong pump on Wall Street, the decrease in volatility, the decrease in bond yields, and the relative stability of the US dollar, combined with these factors, should be Favourable Information for Asian investors on Thursday.

India's stock market rose over 3% on Wednesday, recovering half of Tuesday's losses. India's National Stock Exchange Nifty 50 Index and the BSE Sensex Index are currently above Friday's levels, following volatility triggered by election results and final results.

In the currency market, the euro showed a slight strength on Thursday, as the European Central Bank (ECB) is expected to announce its policy decision, with traders believing that a rate cut is almost certain. Meanwhile, the dollar weakened as the market once again bet on the Fed's expected launch of a loose cycle this year. The euro rose 0.07% to $1.0876, with traders looking forward to the ECB meeting later in the day for guidance on the bank's interest rate outlook.

The yen regained some of its losses from the previous trading day, pumping up 0.4% to 155.50 yen per dollar.

In terms of commodities, oil prices rose in early Asian trading on Thursday. The market expects the Federal Reserve to cut interest rates in September, and the market rebounded from the sell-off caused by the increase in US inventories and OPEC+ supply increase plans. Brent crude futures rose 27 cents, or 0.34%, to $78.68 per barrel, while US West Texas Intermediate crude futures rose 36 cents, or 0.49%, to $74.43 per barrel.

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 content, and the copyright belongs to Gate.io. Please indicate the author and source if you need to reprint, otherwise legal responsibilities will be pursued.