$BTC 24 Hour High $41,690
$BTC 24 Hour Low $39,664
$ETH 24 Hour High $2644
$ETH 24 Hour Low $2512
Happy Wednesday from HKbitEX! We have had quite an exciting week here – the passing of the Bitcoin bill in El Salvador, Elon’s latest tweet and the closing of MSTR’s $500m bond offer. In addition, it was also the first green weekend in over a month. While there are still ups and downs in the market, we are seeing more positive signals coming through, and more importantly, $BTC has finally broken the major $40k resistance. However, given the current “fear to extreme fear” index, the upcoming biggest single unlocking day of GBTC funds, and a negative premium relative to spot on July 19, market sentiment remains highly uncertain. That being said, as we expect increasing volatility, it would be a good idea to stay from leveraging market, to set your stop-loss and always, DYOR!
The $BTC and $ETH market
$BTC is up by around 28% from a weekly low of $31k. The Tuesday pump is believed to be related to the recent U.S. ransomware attacks that involve $BTC, but I’d prefer to describe the bloodbath to be the result of institution’s selling news and extreme fear in market sentiment, allowing the bears to take advantage. Things have since started to turn, with the passing of El Salvador’s Bitcoin Law last Wednesday driving $BTC to above $37k. Furthermore, Elon’s weekend tweet emphasizing the possibility of Tesla re-accepting $BTC pumped the market to a $2000 surge and the first re-testing of the $40k level since the start of June. At the time of writing, $BTC’s market dominance is on the rise again to around 46%, and it is now trading at $40,373 with $42,000 as its next major resistance level and $38,500 as its next key support level.
$ETH wise, market is down by 7.5% from last week. Failure in defending the $2500 resistance level has resulted in $ETH heading lower, touching a low of $2256 before rebounding. $ETH has in the meantime has broken its previous ascending price channel and traded mainly between $2300 and $ 2600. We have also recorded the lowest RSI on $ETHUSD since June last week, indicating that the bears have started to gain momentum. This rise was short-lived though, as $ETH soon rebounded back to its neutral level following the market recovery. Whether it can remain neutral or not marks an important signal for the future trend. Looking into the $ETH/$BTC pair, the market is now at 0.076, up from the previous $0.055 low, meaning that $ETH is now trading relatively weaker when compared to $BTC. At the time of writing, $ETH is trading at $2516, with $2650 as its next major resistance level, and $2250 as its next key support level.
El Salvador’s legislature has successfully passed a bill that will recognize bitcoin as a satisfactory form of payment for any monetary debt last Tuesday (8/6). The bill was passed with 62 out of 84 possible votes. Following the approval, the country requires all business to accept payments in crypto. Companies will also be required to provide alternatives that allow the user to make transactions in bitcoin, as well as be able to seamlessly convert from bitcoin to USD.
According to THE BLOCK, “State Street has built up an entirely new business unit dedicated to digital assets, tokenization, and cryptocurrency assets. Announced last Thursday (10/6), the new unit — dubbed State Street Digital — will be led by Nadine Chakar, an executive Vice President at the firm.” State Street has partnered with a number of companies offering bitcoin products, serving as the administrator for a planned bitcoin ETF set to list on the Frankfurt Stock Exchange. It also acts as the appointed transfer agent for VanEck's Bitcoin Trust.
According to an announcement last Monday (7/6) from ForUsAll, a leading retirement investment platform for small businesses , it has introduced the new Alt 401(k) which allows employers to provide alternative investment options within 401(k) plans.
Key features of the Alt 401(k) include:
- A full turn-key automated 401(k) for employers, with both traditional and alternative investment option.
- Employees are able to transfer up to 5% of their balances into a secure account that has exposure to certain cryptocurrencies
- Employees will be able to buy, hold, and sell over 50 different cryptocurrencies
- Employees will receive ongoing portfolio monitoring and education
According to a press release from MicroStrategy (NASDAQ: MSTR) this Monday (14/6), MicroStrategy has successfully closed its previously announced offering of senior secured notes due 2028. The notes bear interest at an annual rate of 6.125%. It is estimated that the net proceeds from the sale of the notes and the related guarantees will be approximately $488 million, after deducting initial purchaser discounts and commissions and estimated offering expenses payable by MicroStrategy and the firm intends to use the net proceeds from the sale of the notes to acquire additional bitcoin. It is also reported that MSTR has filed an S-3 with SEC on the same day, saying that it may sell as much as $1 billion worth of its stock for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement. MicroStrategy currently holds more than 92,000 BTC on its balance sheet, an amount worth roughly $3.7 billion.
Alts & DeFi
Alts and DeFi wise, Defi TVL (Ethereum network) decreases to $62.58B at the time of writing. For some well-known tokens, over the week, Yearn Finance ($YFI) records a 23.57% decline, Aave ($AAVE) is -23.07%, Compound ($COMP) is -23.98%, Uniswap ($UNI) is -20.67%, Polkadat ($DOT) is -16.82%, Chainlink ($LINK) is -24.95%, Cardano ($ADA) is -15.48% and Polygon ($MATIC) is -14.74%.