Weekly Crypto Market Wrap: 4th June 2024
London: 4 June 2024 (TraderMade): This week in the crypto world was filled with significant events and shifts that could shape the market in the coming months. From major moves in Bitcoin to advancements in blockchain technology, here's a comprehensive review of the week's top stories.
Gox Wallet Moves $9 Billion Worth of Bitcoin.
In a monumental step towards resolving the long-standing Mt. Gox saga, $9 billion worth of Bitcoin was transferred to a single address. This move is part of the creditors' repayment plan, marking a significant milestone in the decade-long aftermath of one of crypto's earliest and most infamous exchange collapses.
BlackRock Dethrones Grayscale as Largest Spot Bitcoin ETF
In a surprising turn of events, BlackRock has overtaken Grayscale to become the world's largest spot Bitcoin ETF. This shift underscores BlackRock's growing influence in the crypto market and signals increasing institutional interest and confidence in Bitcoin as an asset class.
Cathie Wood: Crypto Becomes an Election Issue
ARK Invest's Cathie Wood made headlines, claiming that spot Ethereum ETFs were approved because crypto has become an election issue. "It was absolutely not going to be approved," Wood stated, highlighting the political undercurrents influencing regulatory decisions as the U.S. heads into another election cycle.
Mastercard Introduces "Crypto Credential"
Mastercard has launched a new peer-to-peer blockchain service dubbed "Crypto Credential." This initiative aims to enhance security and trust in crypto transactions, providing a standardized framework that could facilitate broader adoption and integration of blockchain technology in everyday financial services.
Biden Vetoes SAB 121 Repeal
In a decisive move, President Biden vetoed the repeal of SAB 121, maintaining the SEC's authority over crypto assets. This decision reinforces the regulatory landscape, ensuring the SEC's continued oversight and potentially curbing some of the market's more speculative behaviors.
Gemini Returns $2.2 Billion to Earn Users
After an 18-month freeze, Gemini has returned $2.2 billion to its Earn platform users. This resolution relieves many investors who had been unable to access their funds and restores confidence in the platform's commitment to its users.
Bank of Israel Launches Digital Shekel
The Bank of Israel announced the launch of its own CBDC, the Digital Shekel. This initiative positions Israel among the growing list of countries exploring the potential of CBDCs to enhance financial inclusivity and streamline monetary policy.
HTX Surpasses Coinbase in Daily Trading Volume
In a remarkable shift, Seychelles-based exchange HTX has overtaken Coinbase in daily trading volume. This development highlights the dynamic and competitive nature of the crypto exchange market, with emerging platforms rapidly gaining traction.
US Economic Indicators: Mixed Signals
US consumer confidence has shown signs of recovery, yet inflation concerns persist. The US GDP grew at a 1.3% annual rate in Q1 2024, but weekly jobless claims remain higher. These mixed signals from the broader economy are contributing to a cautious yet optimistic outlook in the crypto markets.
Technical Analysis: Macro & BTCUSD
There's a promising technical setup brewing for BTCUSD, which bottomed out at $67,000 after multiple rejections at this level. The RSI indicator lies in oversold territory, and perpetual funding rates are building. With a relatively quiet week on the US macro front, we anticipate a potential retest of the $72,000 level.
A breakthrough here could push BTC to new all-time highs, especially with the US CPI numbers looming next week.
Key Levels to Watch
- Support: $60,000 / $67,000
- Resistance: $70,000 / $73,130 (ATH!)
Spot Desk Insights
The crypto market has taken a hiatus this week, with major coins trading within a narrow range. The desk observed a rotation from altcoins back into BTC and ETH, indicating opportunistic accumulation at current levels.
Market sentiment remains bullish, with anticipation building around upcoming US elections and economic data releases.
Sectors in Focus
- Real World Assets (RWA) Tokens: Mantra (OM) and Ondo Finance saw significant gains, reflecting the growing interest in tokens linked to real-world assets.
- AI Integration: Projects like Arcblock are gaining momentum, driven by the intersection of AI and blockchain technology.
- Notcoin (NOT): This Telegram mini-app surged 328% this week, spurred by new staking functions and user growth.
Token Watch: $ONDO
Ondo Finance aims to bridge traditional finance and DeFi through RWA tokenization. A recent partnership with BlackRock has bolstered its position, with OUSG now offering liquid exposure to short-term US Treasuries. With TVL rising and a strong uptrend, $ONDO presents a compelling opportunity.
As the crypto market navigates these dynamic times, staying informed and strategically positioned will be key. Contact our desk for bespoke trading strategies and access to a wide array of altcoins.
