10 Jul, 23

Weekly Crypto Market Wrap, 10th July 2023



Download the PDF

Zerocap provides digital asset liquidity and digital asset custodial services to forward-thinking investors and institutions globally. For frictionless access to digital assets with industry-leading security, contact our team at [email protected] or visit our website www.zerocap.com

Week in Review

  • BlackRock CEO states Bitcoin is an “international asset,” discusses ETF filings.
  • ConsenSys exec believes Account Abstraction will drive a billion users in Asia to Web3.
  • Ethereum co-founder Vitalik Buterin believes recently-released Ordinals have revived Bitcoin building culture.
  • Crypto Twitter has a persistent “fake followers problem,” with Shiba Inu (SHIB) leading the rank of top project accounts with the most fake followers.
  • SEC claims Coinbase was aware of securities law violations in recent letter.
  • South Africa set to mandate crypto exchange licenses by end of year.
  • Meta launches Instagram-based, Twitter competitor Threads – Twitter threatens to sue Threads, alleges Meta hired former Twitter staff.
  • Gemini files lawsuit against Digital Currency Group (DCG) and Barry Silbert over “Genesis and Earn” program.
  • Google updates privacy policy to allow data scraping for AI training.
  • FOMC: Federal Reserve sees more rate hikes ahead, but at a slower pace.
  • OPEC chief states group interest in adding new members.
  • Bank of England Governor Bailey rejects call for UK inflation target higher than 2%, states credibility is at risk.

Winners & Losers

Data source: TradingView

Market Highlights

  • Bitcoin (BTC) has sustained its trading within the 30k – 31k range at the outset of Q3, 2023. A recent attempt to break out of this range was met with strong selling, with the market seemingly hesitant to bid Bitcoin higher as we await the first ETF decision due in August. Whilst on-chain prediction markets see a less than 13% chance that Blackrock’s ETF is approved by Aug-31, Optimism still remains high with the participants continuing to support the 30,000 support level.
  • The uncertainty in the macroeconomic environment continues to weigh on the cryptocurrency markets with mixed non-farm payroll data pushing traditional markets lower. A weaker NFP print showed the labour market is potentially slowing which was unexpected due to the better-than-expected jobless claims data. The strong labour market has been a major factor in the performance of traditional risk assets and BTC this year. Recession headwinds will strengthen on the back of a slowing labour market and a hawkish federal reserve.
  • US Non-Farm Payrolls data – Saw the US Economy add 209,000 new jobs in June, falling short of analyst estimates of 225,000.

Graph source: TradingEconomics

  • All eyes will be on the US Consumer Price Index (CPI) print on Wednesday, which may sway the course of the markets in the coming weeks. Whilst the Fed will be focused on core inflation, headline inflation is forecasted to drop to 3.1% (from 4%), the lowest since March 2021.  Cryptocurrency markets may continue to be choppy in the near term as the bullish ETF sentiment battles the macroeconomic uncertainty. A major decision on the ETF or an unexpected print during the CPI will likely be the driving factor on whether BTC can break beyond this tight range it is trading within.
  • Shifting our attention back to the ETF dialogue, BlackRock CEO Larry Fink’s endorsement of Bitcoin (BTC) last week can be seen as another catalyst for cryptocurrency’s growing acceptance amongst Wall Street veterans. Fink, previously a known sceptic of cryptocurrencies, stated that BlackRock’s aim is to streamline and reduce the costs associated with trading and investing in Bitcoin. Fink’s recognition of Bitcoin as a potential revolutionary financial vehicle signals a significant narrative shift from asset managers and senior executives that we’ve seen publicly. The welcomed shift in stance underscores BlackRock’s responsiveness to client needs, which is further validation of Bitcoin’s entry into a mainstream asset in TradFi.
  • Open Interest (OI) in CME Bitcoin futures has experienced a surge in recent weeks, appearing to be a ripple effect of the recent ETF news. We can observe that the net open interest traded via asset managers has doubled in just the past two weeks. Intriguingly, hedge funds have been shorting this recent rally above 30,000 and have consistently added short interest since the beginning of this year. While the exact reasons behind the current hedge fund positioning remain unclear, one could argue that hedge funds are exploiting the futures basis, which has been increasing as of late due to added exposure from traditional asset managers. Typically, dated futures contracts have traded at a premium relative to the spot price. Proprietary trading firms have historically held a net short position in futures, which may shed light on the recent hedge fund positioning to capture the uptick in the futures basis.

Data source: The Block – CTFC CoT

What to Watch 

  • BoE’s Governor Bailey speaks at London’s Financial and Professional Services dinner, on Monday.
  • US CPI, BoC’s Monetary Policy and Rate Statement reports, BoE’s Governor Bailey speaks at Financial Stability report conference, on Wednesday.
  • UK’s GDP and US’ PPI, on Thursday.

Research Lab

Innovation Analyst Beau Chaseling takes us on a journey through the Avalanche platform, detailing its unique features including consensus mechanism, architecture, and governance model while also highlighting Avalanche’s innovative approach to scalability and interoperability.

Peer into the evolution of Uniswap with Beau Chaseling’s latest piece for the Research Lab. From its inception as a groundbreaking decentralized exchange protocol to its innovative V2 enhancements, the article offers a deep understanding of Uniswap Labs’s journey while explaining liquidity pools, automated market makers and the introduction of flash swaps.

* Index used:

  Bitcoin    EthereumGoldEquities        High Yield Corporate Bonds      CommoditiesTreasuryYields
BTCETHPAXG        S&P 500, ASX 200, VT      HYG  SPGSCIU.S. 10Y


What were the major events in the crypto market for the week of 10th July 2023?

Major events included BlackRock CEO’s endorsement of Bitcoin as an “international asset”, ConsenSys exec’s belief that Account Abstraction will drive a billion users in Asia to Web3, and Ethereum co-founder Vitalik Buterin’s belief that recently-released Ordinals have revived Bitcoin building culture. Other notable events were the SEC’s claim that Coinbase was aware of securities law violations and South Africa’s plan to mandate crypto exchange licenses by the end of the year.

What was BlackRock CEO’s stance on Bitcoin during the week of 10th July 2023?

BlackRock CEO Larry Fink endorsed Bitcoin as an “international asset” and discussed ETF filings. This marked a significant shift in narrative, as Fink was previously a known sceptic of cryptocurrencies. His recognition of Bitcoin as a potential revolutionary financial vehicle signals a significant narrative shift from asset managers and senior executives.

What was ConsenSys exec’s belief about Account Abstraction and Web3?

A ConsenSys executive believed that Account Abstraction will drive a billion users in Asia to Web3. This indicates a strong belief in the potential of blockchain technology and its ability to revolutionize the internet and the way we interact with it.

What was the market response to the SEC’s claim against Coinbase?

The SEC claimed that Coinbase was aware of securities law violations. The market response to this claim is not explicitly mentioned in the article, but such allegations typically lead to increased scrutiny and could potentially affect the company’s stock price and reputation.

What were the plans for crypto exchange licenses in South Africa?

South Africa planned to mandate crypto exchange licenses by the end of the year. This move indicates a growing recognition of the importance of regulatory oversight in the crypto space and could potentially lead to increased stability and trust in the market.


Zerocap Pty Ltd carries out regulated and unregulated activities.

Spot crypto-asset services and products offered by Zerocap are not regulated by ASIC. Zerocap Pty Ltd is registered with AUSTRAC as a DCE (digital currency exchange) service provider (DCE100635539-001).

Regulated services and products include structured products (derivatives) and funds (managed investment schemes) are available to Wholesale Clients only as per Sections 761GA and 708(10) of the Corporations Act 2001 (Cth) (Sophisticated/Wholesale Client). To serve these products, Zerocap Pty Ltd is a Corporate Authorised Representative (CAR: 001289130) of AFSL 340799

This material is intended solely for the information of the particular person to whom it was provided by Zerocap and should not be relied upon by any other person. The information contained in this material is general in nature and does not constitute advice, take into account financial objectives or situation of an investor; nor a recommendation to deal. . Any recipients of this material acknowledge and agree that they must conduct and have conducted their own due diligence investigation and have not relied upon any representations of Zerocap, its officers, employees, representatives or associates. Zerocap has not independently verified the information contained in this material. Zerocap assumes no responsibility for updating any information, views or opinions contained in this material or for correcting any error or omission which may become apparent after the material has been issued. Zerocap does not give any warranty as to the accuracy, reliability or completeness of advice or information which is contained in this material. Except insofar as liability under any statute cannot be excluded, Zerocap and its officers, employees, representatives or associates do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this material or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this material or any other person. This is a private communication and was not intended for public circulation or publication or for the use of any third party. This material must not be distributed or released in the United States. It may only be provided to persons who are outside the United States and are not acting for the account or benefit of, “US Persons” in connection with transactions that would be “offshore transactions” (as such terms are defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). This material does not, and is not intended to, constitute an offer or invitation in the United States, or in any other place or jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer or invitation. If you are not the intended recipient of this material, please notify Zerocap immediately and destroy all copies of this material, whether held in electronic or printed form or otherwise.

Disclosure of Interest: Zerocap, its officers, employees, representatives and associates within the meaning of Chapter 7 of the Corporations Act may receive commissions and management fees from transactions involving securities referred to in this material (which its representatives may directly share) and may from time to time hold interests in the assets referred to in this material.  Investors should consider this material as only a single factor in making their investment decision.

Past performance is not indicative of future performance.

Like this article? Share
Latest Insights

10 Jul, 23

Web 2 versus Web 3: Key Differences

The internet has undergone significant transformations since its inception, evolving from static Web 1.0 pages to the dynamic and interactive Web 2.0. Now, we stand

10 Jul, 23

Blockchain Business Applications: Improving Any Sector

Blockchain technology, initially synonymous with cryptocurrencies like Bitcoin, has evolved into a multifaceted tool with significant applications across various traditional business sectors. This evolution is

Weekly Crypto Market Wrap, 17th June 2024

Download the PDF Zerocap provides digital asset liquidity and digital asset custodial services to forward-thinking investors and institutions globally. For frictionless access to digital assets

Receive Our Insights

Subscribe to receive our publications in newsletter format — the best way to stay informed about crypto asset market trends and topics.

Want to see how bitcoin and other digital assets fit into your portfolio?

Contact Us
Ready to sign up?
Create an Account