General News Summary + Market Updates – June

July 10, 2024

 

Cryptocurrency Market Update

We have often mentioned that past bull markets typically experience significant drops on their way up. Recently, Bitcoin (BTC) has fallen by 25% from its peak, with many altcoins decreasing by 50-70%. This is one of those substantial drops that test your conviction.

The Market

Although this correction is severe, it is not unusual. Excluding the top 10 assets, the market seems to be in a wave 4 consolidation phase within a primary bull cycle. We are currently in a major support zone, with technical indicators suggesting oversold conditions.

Market Outlook

Despite recent disappointing market action, several factors could drive a swift recovery:

  • Launch of US ETH spot ETFs: Introducing new liquidity.

  • Potential dovish shift in Federal Reserve guidance: Easing monetary policy.

  • Increased investor risk appetite: Renewed interest in higher-risk investments.

  • Possible new US administration: Supporting crypto-friendly regulations.

Many protocols are generating positive cash flows with significant revenues and growing activity metrics. Institutional adoption has surged, positioning the market fundamentally stronger than five years ago. This strength will eventually be reflected in prices.

Long-Term Perspective

Maintaining a long-term view is crucial. The entire digital asset class is valued at less than $2 trillion, compared to $16 trillion for gold, $115 trillion for global equities, and around $900 trillion for all global assets. Thus, significant growth potential remains for digital assets.

ACROSS THE HEADLINES

Silvergate Bank Sued For Misleading Investors 

“The U.S. Securities and Exchange Commission (SEC) has charged Silvergate Bank and three former executives, including former CEO Alan Lane, former Chief Risk Officer Kathleen Fraher, and former CFO Antonio Martino, for allegedly misleading investors about the bank’s Anti-Money Laundering (AML) compliance program.” 

 

Bitcoin Falls After U.S. Sends $240M Worth of Silk Road-Related BTC to Coinsbase 

“Bitcoin (BTC) fell back towards $60,000 on Wednesday, after a wallet tagged to the U.S. Government moved about $240 million worth of seized BTC to a Coinbase Prime address, igniting concerns among traders that the digital assets will likely to be sold.” 

 

First Mover Americans: Bitcoin Bulls Hopeful Entering July as ETF’s Record $130M Inflows 

“The first day of the month saw U.S.-listed ETFs record nearly $130 million in inflows – the most since early June – after more than $900 million in outflows over the month.” 

 

Trump-Biden Tussle Sees PoliFi Sector Lose Lustre as BODEN Drops 95% From Peak 

“TRUMP, the largest Trump PoliFi token, is down 10% on-day and 34% in the last week. TREMP, the counterpart to Boden, is also down double digits: nearly 10% in the last 24 hours, and 37% on-week. “

 

Long Dormant Whale Sends $61M BTC to Coinbase, On-Chain Data Shows 

“Out of the blue, a whale wallet that had been inactive for six years sprung to life early Friday, moving bitcoin {[BTC}} to Coinbase as the leading cryptocurrency faded the spike above $62,000.” 

 

June Crypto Exploits Declined By 54.2% 

“The largest crypto heist in June involved BtcTurk, where attackers drained over $100 million from the exchange.” 

 

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