Weekly Crypto Market Wrap: June 17-23, 2024

Published on: Jun 19, 2024|4 min read

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London: 19 June 2024 (TraderMade): This week, the crypto market saw significant movements. Bitcoin's 19-day green streak ended, Ethereum faced resistance, and Ripple continued its downtrend. Key developments included a surge in crypto investment products and regulatory milestones.

Key Takeaways

Bitcoin's rally halted, reaching a support level by week's end.
Ethereum consolidates around $3,800, showing market indecision.
Ripple drops below key levels, signalling a bearish outlook.
Crypto investment products see $2 billion in inflows in June.
ASX approves its first Bitcoin ETF.
TON surpasses Ethereum in daily active addresses.
Institutional crypto investments hit $1 billion in May.

Bitcoin

Bitcoin has stabilized at previously established levels. The price remained unchanged for a day before breaking out to other levels. By the end of the week, it reached a support level.

On Wednesday, Bitcoin jumped above $70,000 before pulling back. It continued lower for the rest of the week. The weekend saw a slight push higher, but on Monday, Bitcoin dipped again. The Federal Reserve now projects only one rate cut for 2024. Higher rates pressure risk-driven assets like crypto.

Low liquidity and a strong USD contribute to Bitcoin's decline. Fed Chair Jerome Powell stated the bank lacks confidence in lowering rates despite eased inflation. However, Powell noted no one expects rate hikes as the base case.

Ethereum

Ethereum has been consolidating, pulling back to around $3,800. Despite early momentum, ETH faced resistance at $3,800. It entered a consolidation phase, signalling market indecision. Recently, ETH's price dropped to about $3,500, surprising many traders.

Potential causes include liquidity issues and macroeconomic factors. Bitcoin's fluctuations often impact Ethereum. Technical indicators show a sell-off, but reentry by buyers may suggest future growth. Moving averages reveal a bearish signal with shorter-term MAs crossing below longer-term ones.

However, Ethereum's fundamentals remain strong despite the recent downturn.

Ripple

XRP has been on a downtrend, steadily losing value. It fell below the 50-day EMA, then below the psychological support level of $0.50 and the 100-day EMA. The annual low of $0.44 is the next significant support level. Given current market conditions, reaching this level seems likely.

The 200-day EMA remains well above the current price, indicating a long-term bearish trend. A lack of significant purchasing power is a primary factor in XRP's decline. Macroeconomic uncertainties lead to investor caution, affecting overall market conditions.

Key Developments

Crypto Investment Products See Major Inflows

June has been a remarkable month for crypto investment products, with inflows surpassing $2 billion. This surge in investments underscores the growing institutional interest in the cryptocurrency market.

ASX Approves First Bitcoin ETF

In a landmark decision, the Australian Securities Exchange (ASX) approved its first Bitcoin ETF, signalling a significant step forward for cryptocurrency adoption in Australia. This approval is expected to attract new investors to the market.

TON Surpasses Ethereum in Daily Active Addresses

The TON blockchain has overtaken Ethereum regarding daily active addresses, reaching an all-time high. This milestone reflects TON's growing popularity and the increasing utility of its network.

Institutional Investments Surge in May

May witnessed a significant uptick in institutional investments in the crypto market, totalling $1 billion. Ethereum and a newcomer, Notcoin, were the primary drivers of this surge, showcasing their appeal to institutional investors.

Additional Highlights

Trump's Advocacy Former President Donald Trump has expressed his desire for all remaining Bitcoin to be "made in the USA." Bitcoin could be crucial in helping the country win the AI arms race.
Binance Milestone Binance has achieved a major milestone, reaching 200 million users, which accounts for nearly one-third of all crypto holders worldwide. This growth cements Binance's position as a leading cryptocurrency exchange.
Former Binance CEO's Holdings It has been revealed that former Binance CEO Changpeng Zhao (CZ) owns 64% of Binance Coin (BNB) 's circulating supply. This significant holding has implications for BNB's market dynamics.
Terraform Labs Closure Terraform Labs is set to shut down following a $4.5 billion settlement with the SEC. This development marks the end of a tumultuous period embroiled in legal challenges for the company.
Fed's Stance on Interest Rates At the recent FOMC conference, Fed Chair Jerome Powell stated that the central bank is not ready to cut interest rates yet, projecting a single cut later this year amid cooling inflation. This stance has influenced market dynamics, particularly in the crypto space.
Bank of Japan's Adjustment The Bank of Japan has announced plans to trim its bond-buying program while keeping interest rates steady in response to a weakening Yen. This move reflects the bank's efforts to balance economic stability and currency strength.
UK Economy Flatlines The latest monthly GDP report from the UK shows a stagnant economy, raising concerns about the country's economic outlook. This flatlining has implications for the broader financial markets, including cryptocurrencies.

Conclusion

This week has been challenging for the crypto market. Bitcoin, Ethereum, and Ripple all faced significant technical and macroeconomic hurdles. Investors remain cautious amid an uncertain economic landscape. As always, staying informed and adaptable is key to navigating these volatile times.