Archive for  June 2021

Home / June 2021
20 Posts

Cryptocurrency prices surged on June 29 as Bitcoin (BTC) price pushed through the $35,000 resistance level and lifted the total market cap by $93 billion, with $50 billion of that total flooding into altcoins. Bitcoin gained 7% on the day to reclaim the $36,000 level, prompting traders to forecast a rebound to the $38,000 to $41,000 level if (BTC) can convert the $35,000 level into support. Data from Cointelegraph Markets Pro monitored noteworthy positive moves in a number of key altcoins when the market went green, including Polygon (MATIC), SushiSwap (SUSHI), and PancakeSwap (CAKE).

Ethereum investment products have experienced a record outflow of $50 million this past week, signaling bearish sentiment among institutional investors. According to CoinShares’ “Digital Asset Fund Flows Weekly” report, Ether products have now seen outflows for three weeks in a row, with $64.3 million exiting the sector since the week ending June 6. Despite the drawdowns, $943 million has flowed into Ether investment products since the start of 2021. The crypto investment product sector experienced outflows for the fourth week in a row, with $44 million leaving the industry in the last seven days. According to the study, $313 million has been taken from institutional crypto products since mid-May.

Unfazed by legislators’ repeated warnings of a fresh crypto crackdown, Indian investors have poured $38.8 billion into cryptocurrencies over the last year. According to data from blockchain analytics firm Chanalysis that was reported by Bloomberg on June 28, crypto investments increased during mid-2020 before going parabolic as the markets surged into new all-time highs towards the end of the fourth quarter. Chainalysis believes that the total amount invested in cryptocurrency in India has increased from $200 million to $40 billion in the last year, with the business predicting that 15 million Indians are exposed to cryptocurrency.

The current quarter is also on course to be the second-worst for BTC in the nearly eight years since it began in 2014. According to Skew, Bitcoin is presently down over 46 percent for the quarter, the worst quarter since Q1 2018 — when it lost nearly 50 percent of its value in only three months as a result of the fallout from 2017’s all-time highs. Since the start of 2019, Q2 2021 is just the fourth quarter that has seen a drawdown for Bitcoin’s value, with BTC’s price falling roughly 10.6% during Q1 of 2020, 13.6% in Q4 2019, and 21.5% in Q3 2019.

An OG cryptocurrency dating to 2014 is making an aggressive push towards interchain operability, following up the launch of a new privacy protocol and wrapped token bridge to Binance Smart Chain with the launch of yield farming last month. With the goal of enabling frictionless and extremely cheap cross-border transactions, the fully decentralized Navcoin protocol launched a wrapped version of its NAV coins — Wrapped NAV, or wNAV — in April, establishing a link to the Binance Smart Chain and, through it, the world of decentralized finance (DeFi). The Binance BEP-20 token wrap opens decentralized exchanges (DEX) to NAV and xNAV. Ultimately, the goal is to ensure that more wNAV liquidity is concentrated in DEXs. To that end, bridges to Solana and Ethereum are planned for the next 12 months.

Bitcoin (BTC) shed $1,000 in minutes on June 21 as fresh news from China succeeded in routing bulls yet again. According to Cointelegraph Markets Pro and TradingView data, BTC/USD struck a local low of less than $32,500 on Monday. The cause, which disrupted a day of recovery from another drop, appeared to come from China once again in the form of a significant bank statement confirming that it would not enable the use of its services for Bitcoin or cryptocurrency transactions. Involved was China’s third largest bank, the Agricultural Bank of China.

An unusual phenomenon called ‘backwardation’ is taking place in Bitcoin (BTC) futures trading, mainly the June contract, which expires on June 25. Fixed-month contracts typically trade at a little premium, indicating that sellers seek more money to defer payment for a longer period of time. On healthy markets, futures should trade at a 5% to 15% annualized premium, in accordance with the stablecoin lending rate. This is known as contango, and it is not limited to crypto markets. This is an alarming red warning if this indication declines or goes negative. This is referred to as backwardation, and it shows a negative mood.

Bitcoin fell closer to a crucial support level, as the Dow and S&P 500 fell after the Federal Reserve said that it will raise interest rates twice in 2023. The price of Bitcoin (BTC) fell further immediately after Federal Reserve Chair Jerome Powell said that the Fed will move up its plan and schedule two interest rate rises in 2023. Bitcoin price was already seeing weakness in the early trading hours after losing the $40,000 level to mark an intra-day low at $38,300. The Dow and S&P 500 also pulled back 0.77% and 0.54% respectively.

Goldman Sachs analysts stated on May 22 that Ether had a “high likelihood of replacing Bitcoin as the primary store of value.” Furthermore, the research highlighted the expansion of the decentralized finance (DeFi) sector as well as the nonfungible token (NFT) ecosystems being created on Ethereum. Coincidentally, the next day, Ether’s price fell to $1,750. On June 14, CoinShares released its weekly fund flows report and Ether investment products had the largest outflows, totaling $12.7 million. According to Cointelegraph, the impending $1.5 billion options expiry on June 25 might be a turning point for Ether. This number is 30% more than the March 26 expiry, which occurred when Ether’s price fell 17% in five days to reach $1,550.

After El Salvador passed the bill making bitcoin legal tender alongside the U.S. dollar, a growing number of lawmakers in neighboring countries have either expressed their interest in making a similar move. A number of Latin American Lawmakers have indicated an interest in cryptocurrency. Paraguay, Argentina, Panama, Brazil, and Mexico are among the countries involved. Tonga and Tanzania are also said to be interested in bitcoin. El Salvador could set a trend of nations adopting bitcoin. JPMorgan recently said that “similarly situated” countries could follow El Salvador’s move to make bitcoin legal tender. Meanwhile, the International Monetary Fund (IMF) says it sees legal and economic issues regarding this move by El Salvador.