Newsletter 77
7th June 2024
THE MARKET THIS WEEK
Crypto for Advisors: Layer 2s and Bitcoin’s Development The Bitcoin community has created a number of layer-2 blockchains that improve the functionality and efficiency of the network without changing the core software. Because of its decentralized, transparent, and secure features, Bitcoin (BTC) has completely changed the banking industry. Ethereum (ETH), the original cryptocurrency, led the way in the creation of the whole decentralized financial, or DeFi, ecosystem. Currently, Bitcoin is doing the same, bringing in a new phase of growth within its own ecosystem. With the rise in popularity of Bitcoin, issues with scalability and transaction speed also increased.
Despite billions of dollars flowing into ETFs, why isn’t the price of Bitcoin rising?
The United States’ spot Bitcoin ETFs have recently experienced inflows for the 19th day. The reason why the price of Bitcoin hasn’t increased is explained by traders. Many people are perplexed as to why the price of Bitcoin hasn’t surpassed its all-time high of $73,679 established in March, despite a record 19 days of inflows into spot Bitcoin exchange-traded funds (ETFs) headquartered in the United States. Analysts claim to know the solution.
The Benefits and Risks of Tokenizing Private Assets Although there are still technological obstacles, Moody’s digital economy analyst Cristiano Ventricelli contends that moving on-chain for alternative assets could be advantageous. Some of these obstacles may be overcome by tokenization, the process of turning conventional assets into digital tokens using blockchain technology. If it is successful, tokenization might completely change the options market. Token holders can obtain up-to-date information about their assets using Blockchain’s visible and unchangeable ledger, which promotes greater openness in markets that have historically been opaque.
Stocks of Bitcoin Miners Rise Amid Takeover Pandemonium Wall Street analysts believe that miners with excellent power contracts could become M&A targets because the stocks are cheap. Bitcoin mining stocks did better than other equities related to cryptocurrencies. Thursday, after a number of takeover proposals in the business made the market wonder who the next target may be.
Binance Resuming Cryptocurrency Mastercard Payments It is believed that MasterCard is starting to accept deposits and payments in cryptocurrency on Binance. Although Mastercard withdrawal services have not yet been restored, they are anticipated to do so in the future.
KEY METRICS
Total Crypto Market Cap : $2.65T
Bitcoin Market Cap : $ 1.32T
Ethereum Market Cap : $ 421.48B
ETH/BTC Ratio : 0.05
Ethereum Gas Price : 13 gwei
DeFi TVL : $208.03b
Fear and Greed Index : 77 (Extreme Greed)
Federal Reserve Balance Sheet : $7.28 T
BATTLE OF THE BULL AND BEAR
Bitcoin Bets Reach $37B High as ETF Inflows Break New Ground According to data, the long-short ratio has begun to move in favor of bulls since Wednesday, suggesting that some traders believe bitcoin will reach new all-time highs in the upcoming weeks. With open interest for BTC futures positions above $37.7 billion, bitcoin traders have broken previous records. The bullish long-short ratio and record inflows into spot bitcoin ETFs, along with the spike in open interest, suggest that the market is optimistic and that new all-time highs for bitcoin are expected in the upcoming weeks.
BTC price needs to hold $70K next as Bitcoin weathers ECB rate cut Bitcoin could be preparing an attack on liquidity at the $72,000 BTC price resistance line as the European The first interest rate reduction by the central bank in four years. This was the last roadblock before an assault on all-time highs, which is still anticipated by market players given how macroeconomic developments have strengthened the case for the cryptocurrency bull market.
After attempting to reach $72K, Bitcoin retreats, but global rate cuts, Fed data, and US data might lead to new all-time highs. The labor market and consumer price index reports that will be released in the coming days may have a significant impact on the direction of the bitcoin price. Bitcoin (BTC) is getting more and more packed within a small range after the most recent attempt to get beyond $72,000 failed on Thursday.
In May, 63% of the Bitcoin mined by the largest company was sold. In May, Marathon Digital sold a significant portion of its Bitcoin production as miners modified their operations following the halving event. When compared to the numbers of other miners, the substantial amount of BTC sold in May was notable. For example, Riot Platforms reported no Bitcoin sales in May while producing 215 BTC. CleanSpark, on the other hand, created 417 BTC last month but only sold a small percentage of the 2.43 BTC.
WEEKLY REVIEW OF IC15
The global cryptocurrency market was trading marginally higher. The IC15 Index was up 475 points to 91,200 at 4 p.m. Major gainers in the Index were Ethereum, BNB, Avalanche, and Tron in the 0–2% range, while Chainlink, Toncoin, Cardano, and XRP were the major losers in the 0- 3% range.
The Argentine National Securities Commission (CNV) has launched a national registry for Virtual Asset Service Providers (VASP) to maintain market integrity and control the industry. Paraguay’s lawmaker proposes a new bill to regulate Bitcoin mining in the country. The bill aims to curb illicit mining activities, stop electricity theft, and attract foreign investments in the mining industry to create jobs.
Saudi Arabia joins the Hong Kong Monetary Authority’s Project mBridge to become the fifth central bank member to reduce dependency on US dollars in oil trade. Turkey plans to introduce a very limited transaction tax on cryptos and stocks instead of taxing profits earned from these assets to bring justice and effectiveness to the tax policies
WEEKLY SPOTLIGHT
The price of cryptocurrencies was slightly rising on the global market. At 4 p.m., the IC15 Index was up 475 points to 91,200. Ethereum, BNB, Avalanche, and Tron were the Index’s top gainers in the 0–2% range, while Chainlink, Toncoin, Cardano, and XRP were the Index’s top losers in the 0–3% range.
In an effort to regulate the sector and preserve market integrity, the Argentine National Securities Commission (CNV) has established a national registration for Virtual Asset Service Providers (VASP). A politician from Paraguay has proposed a new measure to control Bitcoin mining there. The measure seeks to prevent electricity theft, curtail illegal mining operations, and entice foreign investment in the mining sector in order to generate jobs.
Saudi Arabia is the fifth central bank to join the Hong Kong Monetary Authority’s Project mBridge, a move aimed at reducing reliance on US dollars in the oil trade. Instead of taxing the earnings derived from these assets, Turkey intends to impose a very low transaction tax in order to improve the fairness and efficiency of the tax laws.
The Digital Securities Sandbox was established by the Bank of England and the Financial Conduct Authority (FCA) to help traditional financial institutions incorporate cutting-edge technologies like blockchain. Furthermore, following the FCA’s approval of the prospectuses from WisdomTree and 21Shares, the London Stock Exchange (LSE) will list cryptocurrency exchange-traded products (ETPs) for the first time.
