Coinbase Institutional Market Call US/China Tariff Progress, Stablecoin Update & Coinbase Acquires Deribit
This week, we delve into the significant progress on US/China tariffs announced over the weekend, including reciprocal rate cuts effective May 14th, and discuss how crypto assets reacted during off-market hours, leading to notable moves. In the Bitcoin segment, we analyze ETF flows, question if BTC dominance has peaked, and provide an overview of the OP_RETURN proposal aiming to remove the 83-byte limit. We also touch upon the flows observed on our desk during recent market moves.
For Ethereum, we explore its recent price performance and give details on the upcoming Pectra upgrade. Market-wise, we cover the recent momentum in meme coins and other assets that have lagged this year, alongside updates on key technicals and resistance levels.
On the macro front, we review the April CPI data, note the absence of tariff impacts in current figures, and discuss a Republican budget bill heading for a House vote on Tuesday, which could introduce more economic stimulus later this year. We provide a crucial update on the stablecoin bill, including the Senate's rejection of the "Genius Act" and the upcoming House vote on the "Stable Act." Despite some positive developments, we consider why the market might be underpricing these and discuss revised timelines potentially pushing into 2025. We also cover recent M&A activity in the stablecoin space, such as the Mountain Protocol acquisition.
Further topics include the rise of new companies building Bitcoin treasury solutions for corporates, insights from a strategy conference in Orlando, and Sol Strategies tokenizing part of their capital structure with Superstate. We also highlight Pump.fun's initiative to give back to creators.
Finally, we cover major Coinbase news: the agreement to acquire Deribit, the leading crypto options exchange; the launch of 24/7 BTC & ETH futures in the US; a new Coinbase advertisement; sponsorship of the WNBA's Golden State Valkyries; and the release of over 10,000 pages of documents from our ongoing FOIA campaigns.
Topics Covered:
- Tariffs & Global Trade: US/China tariff reductions, crypto as a weekend proxy, market liquidations.
- Bitcoin Deep Dive: ETF flows, BTC dominance, OP_RETURN proposal, desk flow analysis.
- Ethereum Insights: Price performance analysis, Pectra upgrade details.
- Market Dynamics: Momentum in meme coins & laggards, technical analysis, resistance levels.
- Macroeconomic Outlook: April CPI review, potential impact of new Republican stimulus bill.
- Stablecoin Legislation: Senate's "Genius Act" rejection, House "Stable Act" vote, revised timelines, market pricing.
- Stablecoin Sector News: M&A activity, Mountain Protocol acquisition.
- Corporate Crypto Adoption: Growth in BTC treasury solutions, insights from strategy conference.
- Ecosystem Innovations: Sol Strategies tokenization, Pump.fun creator revenue sharing.
Coinbase News: