Crypto Wrapped: June 27th — July 3rd
Another week, another dip for crypto. Not quite to the same degree that we have seen over the past few weeks, but still not a period that will be looked back on with any favor. With markets down by low double figures week on week, we’re still very much in the grips of a bear market, and we’re seeing no indication of this relieving yet.
Was it another busy week for crypto, or a quiet one in the end?
Not as busy as previous weeks, but it wasn’t as quiet as traders would have liked. Looking at Bitcoin, further ground was lost to the market’s rough conditions, as it fell to $19k at the back end of the week. This was all despite a July 1st short rally, which saw it pull back over $1.5k in a brief flutter of new month optimism. Generally, markets are down between 10–20% week on week, with the notable exceptions of TRON and Cosmos — both down by approximately 4%, so a softer fall for them. Nonetheless, the market only went in one direction.
What about Ethereum amongst all of this?
It feels like Ethereum has been just above $1k for an eternity now! It still is keeping its head above the $1k benchmark, but actually it had a rough week overall. ETH is down by approximately $200 & 16% from its position last week — a repeat of that performance throughout the coming week will see it fall below $1k. The market for the crypto second to Bitcoin very much followed the same trajectory as other markets — a brief, but short lived rally as Q2 transitioned into Q3.
Any news coming out of the United States?
Well, with the first half of the year now complete, there’s been a lot of time spent reflecting on what that has entailed. It’s not been positive overall, with markets in their lowest positions since the 1970s and cryptocurrencies more than 50% below their value on January 1st. The Federal Reserve is scheduled to meet towards the end of July, so expect to see markets respond accordingly around that time. The June jobs report won’t be far away either, and this is often used to measure the condition of the economy. Keep your eyes peeled for any sudden announcements in the meantime too as the market jitters along into the third quarter of the year.
What’s going on away from the day to day?
Vauld have suspended withdrawals over the last few hours, adding them to the list of struggling crypto exchanges. With trading volumes down overall, exchanges are losing a significant source of their revenues. Add that with the value of Bitcoin and major cryptocurrencies taking the tumbles that they have, and there’s a lot of downward pressure being felt. Unfortunately, some exchanges are feeling the pinch, and if market conditions continue on the trajectory that we’re expecting, it’s unlikely that Vauld will be the last.
On the flip side, El Salvador ‘bought the dip’ (again) and purchased 80 Bitcoins at $19,000 each. The Central American country now owns close to 2,500 BTC, and holds very little company as a country putting its faith in crypto. Nonetheless, such a purchase is proof of its unwavering commitment.
There’s also now only 2 million Bitcoin left to be mined. Still the wheel continues to turn…
Are there any cryptocurrencies that are up?!
Actually, there are a few that are up! They are mostly on the fringes of the crypto world however, as major markets are still very much underperforming. We have noticed that Celsius, the token of the cryptocurrency loan company sharing the same name, has picked up by approximately 10% over the past 7 days. However, it is still very much in the grip of a dispute with its users, who are currently locked out from accessing their funds on the platform, so we aren’t completely optimistic this will remain the case.
What’s the mood like in the market overall?
Sentiment is clearly still bearish. There are too many factors that are pulling the market right now for crypto traders to feel comfortable with making significant investments. Binance CEO Changpeng Zhao observed that it could well take a couple of years for Bitcoin to reach its record high of $69k, and talk in the industry continues to revolve around the idea there’s possibly more bad news on its way. ‘Recession’ is a term that we haven’t yet managed to shake off…
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