Crypto Weekly 3-8 July 2023
The U.S. Securities and Exchange Commission (SEC) has clarified to Nasdaq and the Chicago Board Options Exchange that the submitted documents for the launch of a Spot Bitcoin ETF are still unclear and insufficient, particularly regarding the issue of collective surveillance. However, the asset manager, Fidelity Investments, who confirmed the application, can resubmit their documents after providing clarifications.
Fidelity Investments, a global asset manager, has filed a request to establish a Spot Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC) as the 7th applicant this year.
Eric Balchunas, a seasoned ETF analyst at Bloomberg, stated that there is a 50% chance of BlackRock receiving approval for a Bitcoin ETF, and a 70% chance of Grayscale winning the case with the U.S. Securities and Exchange Commission (SEC) regarding the conversion of Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF. Bloomberg expects a conclusion by August.
CoinShares reported that the filing for a Bitcoin ETF has led to a significant influx of funds into digital asset investment products, reaching the highest weekly total since July 2022, with a combined value of $199 million over a consecutive 9-week period.
The Hong Kong government has established a dedicated agency consisting of experts and state officials to promote sustainable growth in the Web3 industry within the country. The budget has been approved to attract leading companies and talented individuals to collaborate in building an advanced ecosystem.
MicroStrategy has made an additional purchase of 12,333 BTC, using $347 million in cash, at an average price of approximately $28,136 between April 29th and June 27th, resulting in a total Bitcoin holding of approximately 152,333 BTC, valued at around $4.6 billion at the current price of approximately $30,300.
Ethereum Name Service (ENS) has announced plans to expand to Layer 2 due to significantly increased gas costs for transactions, thus providing more options for users. Last year, ENS had over 2.2 million domain name registrations, and the number continues to grow, currently reaching 2.73 million unique names with 700,000 unique addresses.
Transaction activity on the Optimism network increased by 67% following the Bedrock upgrade on June 7th. Nansen’s analysis found that the transaction volume went from less than 300,000 daily transactions prior to the upgrade, to over 550,000 transactions by mid-June. The average daily fees remained at only $50,000 by the end of June.
Weekly Technical Analysis: 3-8 July 2023
Bitcoin (BTC)
BTC is starting to move sideways after failing to break through the initial resistance at $31,000. Despite experiencing selling pressure below the $30,000 level, there is a swift buying force indicating readiness to support the price. The support level is not expected to fall below $28,000, with a target resistance at $35,000.
Ethereum (ETH)
ETH is moving sideways and underperforming compared to Bitcoin. It may continue to consolidate for a while before gathering strength for another upward adjustment. The support level to consider for buying is at $1,700, while the short-term target resistance is set at $2,100. Trade within this price range for now.
Compound (COMP)
COMP has experienced a significant upward adjustment of 75.8% in the past week, showing a strong and continuous upward momentum for the second consecutive week. This trend still has the potential to continue upwards as the price has not made any new lows. As a preliminary approach, you mayconsider using the support level at 1,800 THB as a buying and profit-taking point in the short term, with a target price at 2,800 THB.
Maker (MKR)
MKR has seen a 28.6% increase in the past week, indicating a recovering trend and an upward momentum. It is possible to apply a “Buy On Dip” strategy, taking advantage of buying opportunities during price declines. The initial support level is around 28,000 THB, and if the price manages to hold above this level, the first resistance level is around 35,000 THB. This can be considered as a short-term selling point.
Trading and Investment Considerations For The Week
During a joint meeting with the European Central Bank, Jerome Powell, the Chairman of the Federal Reserve, mentioned that the Fed meeting in July may result in an interest rate hike. This aligns with the previous announcement that there might be two interest rate hikes this year. However, it is still uncertain whether the inflation will decrease to the Fed’s target of 2% this year or the next.
Meanwhile, the announcement of the US GDP for the first quarter showed a growth of 2%, surpassing expectations of 1.4%. Nevertheless, this growth rate is lower than the previous quarter’s 2.6%. Despite this, Bitcoin’s price can still resist the monetary policy trends of the Fed, even if the outcomes are negative.
Another factor affecting the price of Bitcoin is the opinion of the US SEC that the submitted documents for Bitcoin ETF establishment by various fund management companies lack clarity. This has generated selling pressure as the rise in Bitcoin’s price at this level is primarily driven by the ETF news.
However, the revision and resubmission of these documents should not be regarded as a rejection, and there is still a chance for approval, which could lead to a recovery in Bitcoin’s price and the continuation of its upward trajectory. It is still believed that the momentum from the major financial institutions applying for Bitcoin ETFs will continue to support the cryptocurrency market for some time.
This week’s highlights include the release of the Federal Reserve’s meeting minutes, known as the FOMC Minutes, on Wednesday, July 5th. Additionally, on Friday, July 7th, the Non-Farm Payrolls data, which measures employment outside the agricultural sector, will be announced. It is expected to be around 200,000 positions, a decrease from the previous month’s 339,000 positions. The unemployment rate is also expected to remain at 3.7%, the same as the previous month.
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://cointelegraph.com/news/us-sec-deems-spot-bitcoin-etfs-filings-as-inadequate-report
https://cointelegraph.com/news/fidelity-renews-push-for-spot-wise-origin-btc-trust-making-it-7th-applicant-this-year
https://www.theblock.co/post/236904/microstrategy-bitcoin-12333-btc-for-347-million
https://cointelegraph.com/news/blackrock-bitcoin-etf-grayscale-sec
https://cointelegraph.com/news/bitcoin-crypto-investments-largest-weekly-inflow-since-july-2022
https://cointelegraph.com/news/ethereum-layer-2-optimism-transactions-surged-following-bedrock-upgrade-nansen
https://cointelegraph.com/news/hong-kong-establishes-task-force-web3-development
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