$BTC 24 Hour High $36,106
$BTC 24 Hour Low $32,741
$ETH 24 Hour High $2273
$ETH 24 Hour Low $2011
Happy Monday from HKbitEX! It has been another bloody week here for the digital asset markets. The new announcement from the Feds last Wednesday (16/6) brought the whole market down, resulting in an over $100B evaporation from the crypto market. Though there appears to be an increasing trend of adoption, see, for example, the new partnership between Maps.me and USDC, the market has generally been controlled by the bears and was quite choppy over the week. In my opinion, the whole market looks very unstable, with a lack of clear signal or momentum. A good practise would be to wait for a clear picture to emerge and only focus on the spot market, trade with a stop-loss and DYOR!
The $BTC and $ETH market
$BTC is down by around 17% from last week’s high of $41k. The Wednesday slump was no doubt due to the announcement from the U.S. Federal Reserve that it may raise interest rates by late 2023. $BTC was down by more than $6000 in the few days immediately following the Fed announcement, where it broke beneath the 20-day MA and headed beneath $35,000. On a 1-hour chart, $BTC is now trading in a downtrend channel: it needs to break this downtrend channel and stabilise above $35,700 to turn bullish, while a break below $32,000 will turn the market bearish and we may expect a mid-term bear market. One other indicator that should be considered is $BTC’s trading volume: this has remained below 50K BTC since June, way lower than the volume in mid-May of ~150K BTC. Usually, low volumes equates to low interest from investors and the markets could easily turn bearish. As at the time of writing, $BTC’s is trading at $34,033 with $35,500 as its next major resistance level, and $32,500 as its next key support level.
$ETH wise, the market is down by 18.5% as compared to last week. Failure to overcome the $2650 resistance level, together with the Fed’s interest rate announcement has pushed $ETH lower, reaching a low of $2040 before rebounding. On a daily chart, $ETH has been trading inside a symmetrical triangle pattern over the week, however active selling by the bears may be the final push to breaking the lower boundary of the formation, resulting in $ETH trading below 2000. Additionally, when we look into the $ETH/$BTC pair, the market is now trading at 0.061 from the previous high of $0.077, as $ETH is now trading relatively weaker when compared to $BTC. As at the time of writing, $ETH is trading at $2030 with $2400 as its next major resistance level, and $1900 as its next key support level.
According to The Block last Tuesday (15/6), Asset management firm Bitwise has raised $70 million in a new funding round. The round, which was co-led by Electric Capital and Elad Gil, values the firm at $500 million dollars. Bitwise is looking to use the new cash to court new clientele and enhance its brand as a trusted partner in holding cryptocurrency for the long term.
According to an announcement from Circle last Thursday (17/6), Circle and Maps.me (a mobile app provides offline maps using OpenStreetMap data) will offer consumers using USD Coin (USDC), a seamless consumer journey from purchase USDC with a credit card, through to holding a MAPS token within a Maps.me Wallet. The announcement also mentioned that participants in the crypto program will also gain access to more deals on Maps.me, such as cashback on travel reservations and discounts on telecom plans.
According to a press release from Galaxy Digital (TSX: GLXY) last Friday (18/6), Galaxy Digital will serve as Goldman Sachs's liquidity provider for its Bitcoin futures block trades with CME Group as the bank expands its cryptocurrency offerings. "Our goal is to equip our clients with best execution pricing and secure access to the assets they want to trade," said Max Minton, Head of Digital Assets for Goldman Sachs' Asia-Pacific Division. "In 2021, this now includes crypto, and we are pleased to have found a partner with a broad range of liquidity venues and differentiated derivatives capabilities spanning the cryptocurrency ecosystem to help fulfil this goal."
Alts & DeFi
Alts and DeFi wise, Defi TVL (Ethereum network) decreases to $53.38B at the time of writing. For some well-known tokens, over the week, Yearn Finance ($YFI) recorded a 9.07% decline, Aave ($AAVE) is -13.93%, Compound ($COMP) is -13.71%, Uniswap ($UNI) is -10.88%, Polkadat ($DOT) is -9.34%, Chainlink ($LINK) is -6.52%, Cardano ($ADA) is -6.34% and Polygon ($MATIC) is -1.50%.