The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk News Reporter Was this newsletter forwarded to you? Sign up here. |
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Welcome to a new week! Here’s what you need to know today in crypto. |
- Bitcoin recovered from a slump that took it down to just above $54,000.
- Germany still holds 39,826 BTC, worth $2.2 billion.
- Bitcoin mining adjusted to halving between April and May, says Jefferies.
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CoinDesk 20 Index: 1,950 +0.1% Bitcoin (BTC): $57,087 −0.6% Ether (ETC): $3,039 +0.9% S&P 500: 5,567.19 +0.5% Gold: $2,382 −0.3% Nikkei 225: $2,382 −0.3% |
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During the European morning, bitcoin recovered from a slump that had seen it sink to just above $54,000. BTC subsequently recovered to climb above $58,000 and is currently trading at around $57,200, down about 0.4% in the last 24 hours. The CoinDesk 20 Index meanwhile has climbed 0.33, after also crashing during the Asian morning. Data from CoinGlass shows there have been $175 million in long liquidations over the last 24 hours after bitcoin lost 13% last week, a decline comparable to that it experienced in the aftermath of FTX's collapse. |
Germany's bitcoin sales and Mt. Gox's reimbursements have recently shaken up the crypto market, and the drama may not be over yet. The eurozone's biggest economy still holds 39,826 BTC worth $2.2 billion, according to data tracked by Arkham Intelligence. The stash, a potential source of selling pressure, represents nearly 9% of BTC's 24-hour trading volume of $25.3 billion, suggesting further price turbulence. Early this year, the German Federal Criminal Police Office seized 49,857 BTC from the operators of Movie2k.to, a privacy website that was last active in 2013. Since mid-June, the government has liquidated over 10,000 BTC, putting downward pressure on the cryptocurrency's going market rate. Bitcoin mining was more profitable in June than May as the price of the cryptocurrency rose 2% and the network hashrate dropped by 5%, and as the market adjusted to the effects of the halving, investment bank Jefferies said in a research report on Monday. “June was a month of modest recovery from the immediate impacts of the halving that were most pronounced in May,” analyst Jonathan Petersen wrote. Hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain and is a proxy for competition in the industry and mining difficulty. The quadrennial reward halving, which occurred in April, slowed the rate of growth in bitcoin supply as miners' rewards were cut by 50%. |
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Digital Asset Funds Flip Positive for First Time in 4 Weeks |
Digital asset investment products saw $441 million of net inflows last week, breaking a three-week string of net outflows, according to CoinShares. The products last registered net inflows in the week ended June 7, when investors added more than $2 billion. Bitcoin (BTC) accounted for $398 million of the inflows. CoinShares noted it is unusual for BTC to represent only 90% of the total. Solana stood out among altcoins, with SOL-linked products registering $16 million. CoinShares attributed the flows to recent price weakness prompted by defunct crypto exchange Mt. Gox preparing to initiate repayments to creditors and the German government's law-enforcement agency moving large amounts of bitcoin to exchanges. Investors likely saw this as a buying opportunity, CoinShares said. However, the sentiment was not reflected in blockchain equities, which saw $8 million in outflows to take their year-to-date total to $556 million. |
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- The chart shows a timezone-wise break up of BTC's 17% slide in four weeks.
- Asian session accounts for most losses, suggesting that "many retail traders in Asia have been liquidated," according to 10x Research.
- Source: VeloData
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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