Crypto Weekly 19 – 25 June 2023
Blackrock, the world’s largest asset management firm overseeing assets worth over $9 trillion, plans to submit a proposal to establish a Bitcoin ETF that invests in the spot market to the SEC. In this endeavor, Blackrock will collaborate with Coinbase as the custodian. Historically, BlackRock has a incredible success rate in its ETF applications, with the SEC approving 575 against just a single rejected one.
Bitwise Asset Management has filed a revised proposal with the SEC to establish a Bitcoin ETF that invests in the spot market, following a previous rejection. The rejection was stated to be due to insufficient guarantee in risk management and asset size.
The Hong Kong Monetary Authority aims to introduce regulations for stablecoins by 2024, after completing the public consultation process. The central bank of Hong Kong is demanding that stablecoin issuers maintain a 100% reserve and prioritize price stability.
BOCI Bank, a subsidiary of Bank of China, has issued a $200 million digital derivative bond on the Ethereum blockchain in Hong Kong. UBS will handle the sales for clients in the Asia-Pacific region.
Tether has minted over $1 billion worth of USDT on the Ethereum blockchain. Tether’s CTO Paulo Ardoino has clarified that the minted USDT has not actually been issued into circulation and is earmarked for next-period issuance requests and chain swaps only, meaning it will not impact the overall market cap of USDT. Currently, Tether holds the top market share among stablecoins, despite regulatory challenges in the United States.
Glassnode released a report after the SEC filed lawsuits against Binance and Coinbase, revealing significant withdrawal of funds from Binance, particularly in stablecoins, with Binance’s stablecoin balance falling by over 20.9%. This indicates a decrease in investor confidence in the market.
Under the leadership of former Twitter CEO Jack Dorsey, Block announced the upcoming launch of Bitkey, a wallet specifically designed to store Bitcoin in both application and hardware form. It is expected to be available in six countries, including the United States, Canada, the United Kingdom, Brazil, and Australia, by the end of this year.
Uniswap, a major DEX, unveiled its next upgrade plan called Uniswap V4, focusing on enabling Smart Contracts to execute actions within specified time intervals and making it easier to create new pools.
Polygon Labs announced the launch of Polygon 2.0, a Zero-Knowledge (ZK) Layer 2 blockchain that allows users to assert their rights without revealing sensitive information. Additionally, it improves the network’s processing speed.
Weekly Technical Analysis: 19 – 25 June 2023
Bitcoin (BTC)
BTC showed signs of a slight recovery after a heavy correction in the previous week. However, if it fails to surpass its $28,000 resistance level, the short-term trend remains bearish, with a possibility of BTC testing its support at $25,000 once again. Sideways movement is expected until additional positive factors provide support for BTC.
Ethereum (ETH)
ETH also experienced a recovery alongside BTC. However, the price trend remains weak, with the possibility of ETH falling to retest its support at $1,700 remaining. If support can remain intact, it may indicate a short-term profit-taking trend as ETH looks to challange resistance at $1,900, which it will have to surpass before a potential uptrend.
Alpha Venture DAO (ALPHA)
Alpha Venture DAO (ALPHA) showed a +11.9% increase during the past week, but the overall trend remains bearish. In the short term, attention should be focused on the support level at 3.30 Baht. If this support holds, there is a chance for further recovery towards the short-term target at 4.40 Baht. However, if it fails to surpass this level, a further downward correction is possible.
Uniswap (UNI)
UNI experienced a -11.6% decrease over the past week, and the trend is currently recovering from its previous lowest point. The support level to consider for buying is around 145 Baht. If price drops below this level, it may indicate a market hesitancy in UNI investment. Keep an eye on the resistance level at 167 Baht if a new low is not established, the trend still has the potential for further recovery.
Trading and Investment Considerations For The Week
The Federal Reserve’s recent monetary policy meeting resulted in an as-expected decision to maintain interest rates at 5-5.25%. However, the crypto market is now focused on the regulatory oversight policies of the SEC in the United States. Despite the FED’s updated economic projections, forecasts, and dot plot revealing plans for two additional interest rate hikes in 2023 and no rate cuts until 2024, no significant negative impact was seen on Bitcoin prices. Nevertheless, the likelihood of additional investor funds flowing into Bitcoin in the final quarter of this year may be reduced.
This week, FED Chairman Jerome Powell will provide his semi-annual monetary-policy report to the House Financial Service Committee on Wednesday 21 June and the Senate Banking Committee on Thursday 22 June. Powell’s speech could provide key insights on the state of the US economy, and his statements could affect market sentiment.
Altcoins, for the most part, have generated lower returns compared to BTC, and it is potentially not the opportune time to accumulate for long term investment due to the lack of positive factors supporting their growth. One potential trading strategy could focus on short-term trading and profit-taking opportunities in BTC and ETH, which have shown signs of recovery in their price trends.
Disclaimer:
-Cryptocurrency and Digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to own risk profile.
– Past Returns/Past Performance does not guarantee future returns/performance.
*Materials on Bitazza Weekly Newsletter are intended to be used and must be used for informational purposes only. The views, information, or opinions expressed are solely those of the individuals involved and do not necessarily represent those of Bitazza and its employees. The information contained herein is not intended to be a source of advice or financial analysis with respect to the material presented, and the information and/or documents contained in this website do not constitute investment advice.
Sources:
- https://watcher.guru/news/sec-sues-coinbase-citing-u-s-securities-law-violations
- https://cointelegraph.com/news/coinbase-reminds-world-it-tried-to-embrace-regulation-as-sec-sues-for-violations
- https://www.coindesk.com/policy/2023/06/06/sec-seeks-temporary-restraining-order-to-freeze-binanceus-assets/
- https://www.theblock.co/post/233295/gary-gensler-crypto-coinbase-binance
- https://cointelegraph.com/news/sec-coinbase-binance-lawsuits-surge-defi-trading-volumes
- https://cointelegraph.com/news/ark-invest-buys-coinbase-shares-the-same-day-sec-serves-lawsuit
- https://cointelegraph.com/news/hong-kong-legislator-invites-coinbase-to-the-region-amid-sec-scrutiny
- https://cointelegraph.com/news/circle-is-latest-recipient-of-major-payment-institution-license-in-singapore
- https://cointelegraph.com/news/optimism-successfully-completes-bedrock-hard-fork-reducing-deposit-times-layer-1-fees
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