Bitcoin
The next seven days for Bitcoin resulted in a loss of 3.74%. Most of the week was spent trying to stay near the $70,000 mark. However, this was not possible. And now BTC is closer to $65,000. Trading volumes continue to remain relatively small.
Source: tradingview.com
Probably the most important news of the past week was the publication of inflation figures in the United States. The results were better than expected. Inflation slowed to 3.3% in May. The consensus forecast was 3.4%. The consumer price index, excluding food and energy, turned out to be better than expected – 3.4% versus 3.5%. This state of affairs gave investors hope that the US Federal Reserve would lower its key rate. But so far this has not happened. The rate remains at the same level, in the range of 5.25-5.5%. Until the end of the year expected reduction with a probability of 80%. However, Federal Reserve Chairman Jerome Powell, as usual, was ambivalent about the economic situation. In his opinion, it is even possible to increase the key rate, but in the base scenario such a turn
not considered. From the point of view of analysts of the trading crypto platform K33, the weakening of US monetary policy
can deduce Bitcoin to new price records.
Analytical platform Glassnode presented statistics according to which large players account for about 27% of all Bitcoin in free circulation. In absolute terms, they hold about 4.23 million BTC. Largest volume
is listed on the balances of spot BTC-ETFs, 862,000 bitcoins. It is obvious that big business considers the largest cryptocurrency not only a good remedy for inflation, but also believes in growth. Otherwise I wouldn’t have kept it.
But Axel Adler Junior, an employee of the analytical platform CryptoQuant, noticed a decrease in demand for Bitcoin from retail investors by 17% over the past 30 days. A similar picture was observed in January, when the decrease in the indicator was 18%. Interestingly, after this Bitcoin increased from $40,000 to $70,000. In all likelihood, Adler
hintsthat history may repeat itself.
From the point of view of technical analysis, the situation is ambiguous. If we look globally, the largest cryptocurrency by capitalization continues to remain sideways, between the support levels of $65,513 and resistance of $73,794. The price is still above the 50-day moving average (indicated in blue), which speaks in favor of the bulls. But the RSI indicator is declining and has fallen below 50 – this is already a bearish signal.
Source: tradingview.com
Index
fear and greed compared to last week, it decreased by three points, to 74. This indicates the prevalence of greed among Bitcoin investors.
Ethereum
The cost of ether from June 7 to June 14, 2024 decreased by 5%. If at the beginning of the month it seemed that the second largest cryptocurrency by capitalization was about to overcome the $4,000 mark, now there is no question of this, and the price has fallen below $3,500.
Source: tradingview.com
The main news that influenced the price of ETH, as well as BTC, was inflation in the United States and forecasts for changes in loan rates. However, overall Ethereum is doing well.
Asset management company Bitwise has noticed an improvement in payments via Ethereum. The organization’s analysts believe that the platform has achieved amazing success in non-cash transfers, withdrawals and transactions (compared to the traditional financial system). The average fee for a $5,000 trade in Ethereum is $0.86, according to Bitwise. At the same time, the cost of an average non-cash transfer in the traditional system in the amount of $5,000 will cost $45, and a withdrawal of funds will cost even more – $150. Delighted Bitwise representatives summed up:
“Ethereum has reduced commissions by an order of magnitude. This is a tenfold improvement (if not more) compared to traditional participants in the financial system. Historically, a technology that is ten times better at something cannot be stopped.”
The topic of spot ETFs for ether continues to develop rapidly. One by one, companies fill out Form S-1. This week it’s ProShares’ turn. In the document, the organization disclosed the role of all participants who will be involved in one way or another in the process of implementing the ProShares Spot Ethereum ETF. The key role will be taken by Bank on New York Mellon (BNY Mellon), which will act as a transfer agent, administrator and custodian of funds, process purchase and sale orders, and monitor ownership records. Other key positions got:
- Coinbase Custody, which will store the ether;
- Coinbase will serve as the executing agency;
- Delaware Trust Company will serve as trustee;
- ProShare Capital Management is the fund’s sponsor.
The technical picture is very similar to that of BTC. Overall, the value of ETH is decreasing. However, the indicators give too different signals. The price is still above the 50-day moving average (in blue), which is in favor of the bulls. But the RSI is falling below 50, which indicates that the bears are beginning to seize the initiative. Support and resistance levels: $3,355 and $3,974.1, respectively.
Source: tradingview.com
Cardano
Like Bitcoin and Ether, the Cardano cryptocurrency decreased in price from June 7 to June 14, 2024. The drop was 6.2%. Since the second half of May, Cardano has continued to experience a black streak. During this time, the ADA token lost more than 17% of its value.
Source: tradingview.com
Despite the fact that the price of Cardano has not pleased investors lately, the platform is doing well. Already at the end of June it will receive an update – the Chang hard fork, known under the full name Cardano Improvement Proposal (CIP) 1694. The platform is already ready for its implementation, the developers assure. It is necessary that at least 70% of staking pool operators install a new node (node). Once this happens, the “Age of Voltaire” will begin in Cardano. Forums and blogs associated with CIP 1694 say that the innovation will allow ADA token holders to vote on important decisions within the platform. When implementing the second stage, updates should also become
available such functions as proxy participation and withdrawal of rewards. They will allow you to propose and sponsor projects within the ecosystem.
The Chat-GPT4 neural network expressed the opinion that it is preferable to invest in Binance Coin or Cardano, which recently updated its historical maximum. Artificial intelligence is betting on BNB in the short term. But in the long term, he considers it more profitable to invest in Cardano. As reasons, the neural network
calls: platform update, strategic partnership with the government of the province of Entre Rios in Argentina, as well as an increase in total transaction volume to 91 million and an average of 50,000-70,000 per day.
The analytical platform Santiment provides data according to which Cardano ranks second in terms of interest on social networks. In first place, naturally, is Bitcoin. The public is mainly interested in Cardano
requests: NFT smart contracts, comparison with Ethereum, growth of network decentralization.
From the point of view of technical analysis, the situation is clear – the initiative is on the part of ADA sellers. This is confirmed by several factors:
- the price is below the 50-day moving average (indicated in blue);
- the RSI indicator falls and is 38.41 – less than 50.
It is very important for the bulls to stay above the support level and also the 2024 minimum – $0.39961. If this fails, the decline will continue. It is worth talking about a change in trend only after overcoming the resistance level of $0.52246.
Source: tradingview.com
Conclusion
The week for cryptocurrencies was marked by falling prices. Despite the fact that inflation in the United States has slowed, there are still no specifics regarding the Fed’s key rate cut. This means that cheap loans have not yet been delivered. This became the key to sales.
This material and the information contained herein do not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
