Market wrap: Bitcoin outperforms major cryptocurrencies in June
Bitcoin traded lower on Wednesday as traders took profit at the June close. The world’s largest cryptocurrency is on track for a record 41% second quarter price drop, breaking a four-quarter winning streak that saw prices rise six-fold to nearly 65,000 $ in April.
The sell-off of crypto in the last quarter was sparked by regulatory crackdowns, concerns over tightening monetary policy, environmental concerns and slowing institutional demand. Sales stabilized in June, leaving bitcoin in a narrow range between $ 30,000 and $ 40,000.
Bitcoin was trading at around $ 34,000 at the time of publication and has fallen by around 4% in the past 24 hours.
“Price fluctuations reinforce the idea that volatility is a fundamental part of an emerging and expanding market,” Steve Elrich, CEO of crypto exchange Traveling Digital wrote in an email to CoinDesk. “Investors are always buying the decline.”
- S&P 500: 4,300.4, + 0.2%
- Gold: $ 1,769.5, + 0.5%
- The 10-year Treasury yield closed at 1.458%, down from 1.473% on Tuesday
Relative performance in June
Bitcoin outperformed other large-cap cryptocurrencies in June with a decline of 2.7%, compared to declines of over 30% for XRP, EOS and LINK.
The decline in altcoins has stabilized bitcoin’s dominance ratio, or its relative market share, at around 45%. There are signs, however, that the demand for altcoin has increased in recent weeks.
“While bitcoin remains in our top weekly net buys, we see other altcoins growing in popularity as a result of its decline, most notably SHIB and ETH which took the top two spots of the week,” Elrich wrote.
Bitcoin and Ether volatility remains high, albeit lower than January 2020 highs. While both cryptocurrencies have experienced extremely volatile swings over the past year, traditional markets have remained relatively calm.
Probability of Bitcoin options
The bitcoin options market predicts a 65% chance that the price will stay above $ 20,000 by the end of the year. And there is a 20% chance of bitcoin going back above $ 50,000 according to options data provider Distort.
Bitcoin techniques are also improving as signs of downside exhaustion appeared on charts last week, according to DeMark indicators. This suggests that buyers could remain active above the $ 30,000 medium term support.
Lower yields following the “cross of death”
Bitcoin registered a “death cross” when the 50-day moving average fell below the 200-day moving average on June 19. Typically, a death cross signals a change from an uptrend to a downtrend and occurs after an initial sell-off in prices.
Returns following a cross-death event can vary and tend to be low to negative. “We conclude that [the death cross] is not a consistent downward price predictor over periods of 1, 3, 6 and 12 months ”, tweeted CoinShares on June 22.
Bitcoin hashrate stabilizes
Bitcoin’s hashrate has stabilized after dropping for 10 consecutive days, and industry experts speculate that the worst fallout from China’s recent mining crackdown may be over.
Bitcoin’s seven-day average hashrate stood at 90.6 exahashs per second on Tuesday, up slightly from 90.5 EH / s on Monday. The number is still down by about half from the peak rate reached in mid-May, according to data from Glassnode.
The majority of the reduction stems from China’s decision to shut down cryptocurrency mining operations in the country, with some from Iran, according to Sam Doctor, chief strategy officer at BitOoda, a platform digital asset financial services.
“We believe that there isn’t a lot of active hashrate left in China,” the doctor said in an email to CoinDesk.
Altcoin balance sheet
- Etherum extraction: Ethereum 2.0 validator balances vary wildly from 30 ETH to 65 ETH. The main reason for the extreme disparity is not because some validators are more profitable than others or because some validators started earning rewards on the network earlier than others. About 168 out of 178,000 validators simply deposited their minimum stake of 32 ETH twice, by accident, explained CoinDesk’s Christine Kim.
- USDC Extension: USDC, the now native stablecoin of four blockchains, could soon be listed on eight to ten other networks, CoinDesk has learned. It would be the largest $ 25 billion stablecoin expansion to date, potentially overtaking the eight blockchains that support USDT from Tether, the market leader with a market cap of $ 63 billion.
Most digital assets on CoinDesk 20 ended up going down on Wednesday.
Notable Winners at 9:00 p.m. UTC (4:00 p.m. ET):
Annual funding (YFI) -4.43%