Near-Record ETF Inflows, G7 Central Banks Commence Rate Cuts

Crypto Market Update

Risk assets are experiencing a broad rally today, supported by relatively constructive macro data. The significant data point released today was the ISM Services PMI, which came in at 53.8, an expansionary figure above the expected 50.8, and well above the prior month's 49.4. Importantly, prices paid came in at 58.1, below the expected 59, which is a positive sign from an inflation perspective. As expected, the Bank of Canada cut its benchmark overnight rate by 25 basis points to 4.75%, commencing the cutting cycle among G7 countries. The market anticipates a similar cut from the ECB tomorrow. #BTC has rallied back to above $71k, attempting to break through the May 20th high of $72k. #SOL is following suit, up a similar amount and attempting to move above $175, while #ETH is still churning sideways just above the $3800 level. Major outperformers of the day include a pair of memecoins, #ORDI and #FLOKI, as well as #STX, which has followed through on its strong performance yesterday, up another 10%. Rates are moving lower across the curve yet again, with the 10Y below 4.3% for the first time since early April. Major equity indices are in the green, with tech showing strong outperformance.

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