Market update

2024-07-09-1US.png

The bull market appears to have been temporarily suspended due to the prospect of large amounts of Bitcoin flowing on to the markets from Mt Gox, and the German government. Bitcoin finished the week down 11% at A$83,793 (US$56,242), while Ethereum was hit even harder and pulled back 14% to A$4,471 (US$2,999). Everything else was in the red including Solana (-8%), XRP (-12%), Dogecoin (-11.6%), Cardano (-10%) and Shiba Inu (-3.5%). On the upside, Santiment says that the MVRV scores for Dogecoin, Uniswap, Ethereum, Link, XRP and Cardano indicate a potential buy the dip opportunity. Wall Street traders are also pricing in a 72% chance the Federal Reserve will cut interest rates in September which should make macro conditions more favourable. The Crypto Fear and Greed Index is at the lowest point since January 2023 at 28, or Fear.

2024-07-02-1US

After dropping below A$89K (US$59K) in the wake of the Mt Gox repayments news, Bitcoin has recently staged a recovery and the price jumped 4% a day or so ago. BTC is currently trading at A$94,354 (US$63.1K) which puts it 4% up on the same time last week. Ethereum is trading around A$5,160 (US$3,451) which is 3% up on the same time last week. Solana led the altcoin gains with an 11% rise thanks to speculation over a potential ETF, XRP gained 0.15%, Dogecoin (3.5%), Cardano (7%) and Shiba Inu (7%). The US Bitcoin ETFs ended June in the black, with a net A$1.03 billion (US$688 million) of inflows. However, the final week of June saw around A$56M (US$37.3M) in outflows. Historically July is a positive month for crypto markets with an average gain of 7.42%. The Crypto Fear and Greed Index is at 53, or Neutral.

2024-06-25-1US

Bitcoin spent most of the week trading slowly down from A$100.6K (US$66.3) to A$97K (US$64K) before taking the elevator down A$7K (US$4K) yesterday as news emerged that Mount Gox would finally start to repay $9.4B in Bitcoin and Bitcoin Cash to creditors from next month. The dump calls into question the efficient market hypothesis in relation to crypto given the repayments have been known about for a very long time and have caused a number of drops in the past year. But even prior to the latest news things were looking downbeat though with Bitcoin whale activity dropping 40%, futures traders turning bearish, and Santiment’s weighted sentiment index negative for a month straight. At the time of writing Bitcoin was down 8% on the same time last week at A$90,462 (US$60.3K) while Ethereum was down 3% to A$5,030 (US$3,356). Solana was down 2%, XRP (-3%), Dogecoin (-8.8%), and Shiba Inu (-5%) while Cardano was flat (-0%). The Crypto Fear and Greed Index is at 51 or neutral.

2024-06-18-1US

Despite Bitcoin’s 30 days volatility hitting historic lows, a wave of volatility overnight saw around A$438M (US$290 million) in liquidations across the market. The US Fed took a hawkish tone and kept interest rates on hold at 5.5%, so the combined effects of inflation, high interest rates and Bitcoin miners capitulating, has been weighing on prices. Bitcoin finishes the week down 4% to trade at A$100,940 (US$66.6K) while Ethereum also lost 4% and is trading around A$5332 (US$3520). Solana was down 9.8%, but XRP actually gained 2.1% after its nemesis, SEC crypto unit boss David Hirsch resigned (no, he didn’t join  Pump.fun, that was a gag.) Dogecoin lost 10%, Cardano fell 8.1% and Shiba Inu was down 7%. The Crypto Fear and Greed Index is at 71 or Greed. 

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With massive ETF inflows, Bitcoin looked like it was heading toward new all-time highs last week, but it came crashing back to earth following stronger than expected US jobs data, which increases the chances of inflation numbers and interest rates remaining elevated. Record leverage build up on Bitcoin futures was flushed out as Bitcoin fell from A$108.5K (US$71.9K) to A$104.6K (US$68.9K). A US Federal Reserve meeting and CPI data are due out this week, with analysts scrapping predictions for a July rate cut. However, Europe and  Canada have already cut rates. Bitcoin finished the week flat at A$104,884 (US$69.5K) while Ethereum eased back 2.7% to A$5,545 (US$3,673). Elsewhere it was a sea of red with Solana (-3.8%), XRP (-4.7%) and Cardano (-4.1%) all falling. The slide in meme stock GameStop also appeared to weigh on memecoins, with Dogecoin losing -8.6% and Shiba Inu decreasing -6.7%. The Crypto Fear and Greed Index is at 72 or Greed. 

2024-06-04-1US

Bitcoin briefly topped the A$105.4K/US$70K mark earlier today, but is yet to convincingly break out above. We’ve been consolidating in this region since March, albeit with some dips below A$90K/US$60K. Bitfinex analysts suggest that long-term holders’ selling was a key reason for Bitcoin’s retreat from all-time highs, but on-chain data suggests these holders have begun to reaccumulate. The amount of Bitcoin and Ethereum on exchanges has fallen roughly 10% this year to historically low levels. Unfortunately, Bitcoin’s active addresses are also at five-year lows. Bitcoin finishes the week flat at A$102,495 (US$69,037), while Ethereum lost 2.8% to trade around A$5,582 (US$3,772). Most other coins eased back a little: Solana fell 5%, XRP (-2%), Dogecoin (-6%), Cardano (-2%) and Shiba Inu (-3.5%). The Crypto Fear and Greed Index is at 73 or Greed.