Market update

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.

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. 

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. 

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.

The past week was arguably one of the most historic for crypto in a decade, with SkyBridge Capital’s Anthony Scaramucci summing it up as “a big year this week in crypto.” Pro-crypto legislation passed with bipartisan support in the US House of Representatives, the Ethereum ETF was approved, and Donald Trump promised to defend crypto from critic Elizabeth Warren and her “goons.” It suggests a sea change in crypto’s political fortunes and is a potential catalyst for the second stage of the bull run. Bitcoin topped the A$106K (US$70.6K) mark earlier today but at the time of writing the price was flat on seven days ago to trade at A$104,210 (US$69.5K). Ethereum gained 6.9% over the past week and is trading around A$5,839 (US$3,883). The ETF approval appears to have taken some of the gloss off of ETH killer Solana which pulled back 8.4%, and ETH competitor Cardano (-6.1%), XRP was flat, Dogecoin gained 2.5%, and Shiba Inu was flat. The Crypto Fear and Greed Index is at 74 or Greed. 

Crypto markets surged this morning after reports the SEC may actually approve an Ether ETF this week. At the time of writing Bitcoin was up 13% for the week to A$106,790 (US$70.5K) and Ethereum was up 24% to A$5,535 (US$3,661) — however markets were rising fast. Everything else was up including Solana (26%), XRP (6%), Dogecoin (9.6%), Cardano (14%) and Shiba Inu (9.1%). The Crypto Fear and Greed Index is at 76 or Greed.