Crypto Weekly 26 June – 3 July 2023
Invesco, a global asset management company, has filed for the launch of a Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC), following Blackrock and WisdomTree Investments’ previous filings for Bitcoin ETFs.
Volatility Shares Trust is preparing to launch a Leveraged Bitcoin Futures ETF, although it has not yet received approval from the SEC. The fund aims to generate double the returns from investing in Bitcoin by using margin funding, and this is seen as an important step towards the establishment of a Bitcoin Spot ETF in the future.
Major financial institutions in the United States, such as Citadel, Fidelity, Charles Schwab, Sequoia Capital, Virtu Financial, and Paradigm, have jointly introduced a new digital asset platform called EDX. The platform initially focuses on trading major cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
The Chairman of the Federal Reserve has suggested to the Financial Services Committee of the House of Representatives that the central bank should have a role in approving stablecoins for payment, considering them as a form of currency.
During a session in the Parliament of the United Kingdom, members have called for the passage of financial services and market legislation, which aims to strengthen the country’s financial services industry after Brexit. The legislation also includes the regulation and oversight of digital assets to prevent a future financial crisis in the UK.
The International Monetary Fund (IMF) has called for the regulation of the use of cryptocurrencies in some countries, particularly in Latin American and Caribbean countries that have adopted Bitcoin and other digital currencies as legal tender. However, despite calling for more stringent regulations, the IMF believes that a complete ban on crypto usage may not be the best approach.
Deutsche Bank, the largest financial institution in Germany, has applied for a license to oversee digital assets with BaFin, the financial regulatory authority of the country. The bank also plans to invest in cryptocurrency companies in two countries.
CACEIS Bank, the asset servicing unit of the major French bank Crédit Agricole, and Santander, a major Spanish bank, have obtained a Crypto Custody license in France to enhance the security of digital asset storage for institutional clients.
Ripple has been granted a major payment institution license from the Monetary Authority of Singapore, enabling it to offer products and services for digital payments, including domestic and international transactions using XRP. Besides Ripple, Circle has also previously obtained a license, as well as crypto.com.
Bitcoin Dominance has reached 50%, touching this level for the first time in two years on June 19th. The total market value of Bitcoin is around $519 billion, while Ethereum’s market value stands at 20%. Michael Saylor believes that Bitcoin Dominance will reach 80% in the coming years.
Weekly Technical Analysis: 26 June – 3 July 2023
Bitcoin (BTC)
BTC prices have surged due to the news of preparations for the submission of Bitcoin ETFs. In the short term, BTC has yet to overcome the resistance level at its previous peak of $31,000. This week, BTC may undergo a retracement as its RSI enters the overbought zone. If the retracement does not fall below the $28,000 level, there is a chance for the trend to adjust upwards. The mid-term target is set at $35,000.
Ethereum (ETH)
ETH has adjusted upwards following BTC’s trend. ETH has a chance to recover further if after the retracement this week it doesn’t fall below the $1,700 support level. If ETH can maintain its momentum, it will look to test the $2,100 resistance level in the medium-term. If it successfully surpasses this level, it will enter a full upward phase after having been stuck sideways from some time.
Serum (SRM)
SRM is up by +151.6% over the past week. After a prolonged period of volatility without a clear direction, for a genuine recovery, its support level at 3.50 THB must remain intact. After that, SRM will have to break through the previous resistance level at 6.00 THB for a true upward reversal to occur.
Compound (COMP)
COMP is up by +35.9% in the past week. However, the relatively quick price recovery has led to significant selling pressure. This week, focus on the support level at 1,240 THB. If it can hold, it might serve as a buying and selling point for short-term profits at around 1,520 THB. But if the support level cannot be maintained, there may be a loss.
Trading and Investment Considerations For The Week
The price of Bitcoin has increased by over 15% in the past week, causing the market to become more active. This is due to major financial institutions in the United States preparing to file for a Bitcoin ETF with the SEC. Market participants are anticipating the entry of significant institutional money into the cryptocurrency market.
Altcoins have also experienced a recovery, but the increase in Bitcoin Dominance to a new high of 50% may not have allowed altcoins to fully recover. However, there is a high chance that altcoins will gradually recover in the upcoming period if Bitcoin Dominance begins to decrease.
Nevertheless, the rapid price surge may result in a cooldown for Bitcoin this week. However, if there is no significant selling pressure, there is still a chance for accumulation. It is advisable to focus on large-cap coins.
Key highlights for this week include the speeches and perspectives on the state of the US economy by the Chairman of the Federal Reserve on Wednesday and Thursday, June 28 and 29. The content discussed may have ramifications for the upcoming announcement of US GDP figures on June 29.
The market expects the US economy to have grown by 1.4%, an increase from the previous figure of 1.3%. The announcement of economic figures may influence the monetary policy decisions of the Federal Reserve in the upcoming meeting. Although it has been previously disclosed that there is a chance of two more interest rate hikes this year and no interest rate cuts, if the economic figures turn out worse than expected, it could ultimately have a positive impact on the price of Bitcoin.”
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.
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