June 10, 2024

Is the anticipated ‘summer break’ in the market now following?

Thought of the week

If the annual cycles are similar despite the new era in digital assets, the market could enter a calmer phase into September. However, the large inflows into Bitcoin spot ETFs from institutional investors paint a different picture.

Digital Asset News

As data shows, the Bitcoin price is slowly recovering towards the weekend.
The market-leading cryptocurrency suffered a downturn on Friday, which was largely due to ‘schizophrenic’ new labour market data from the US.
This was exacerbated by a slump in altcoins, which in turn was triggered by the return of the influential trading influencer Roaring Kitty.
BTC slid to an interim low of USD 68,450, while Ethereum even temporarily slipped below USD 3,600.
The analysts at QCP Capital, however, see the developments on the US market as ‘doubly strange’.
‘It was all confusing enough to take out risk ahead of next week’s announcement of the new inflation figures,’ as the analysts summarise on Telegram.
In addition to the publication of the new US inflation figures in the form of the Consumer Price Index (CPI), the FOMC meeting of the US central bank is also due next week, at which the future interest rate policy will be negotiated.

The crypto analysts point to the entry price of USD 67,500 at the beginning of the month as an important support level for Bitcoin, which must now be maintained. “If we lose these important marks now, I believe we will also lose some momentum from the upward trend. BTC must hold at least USD 64,000 – 65,000 to prevent this from happening.”

The US election campaign is in full swing and digital assets are taking centre stage!
Former US President Donald Trump has reiterated his endorsement of cryptocurrencies as part of his 2024 presidential campaign and is now announcing his goal to become the ‘crypto president’, according to a recent report by Reuters.

On 7 June, citing sources familiar with the matter, it was reported that Trump is said to have declared that he wants to be ‘the crypto president’ at a fundraising event in San Francisco organised by David Sacks, a partner in Craft Ventures, and tech billionaire Chamath Palihapitiya.
The event helped Trump to raise 12 million dollars to support his campaign for the presidential election on 5 November.

Among other things, Trump emphasised his support for cryptocurrencies and his plans to promote the industry at the fundraiser, while also hinting at the Democratic Party’s intention to take a contrary approach with strict regulation – commonly known in the US crypto industry as regulation by law enforcement.
This comes just a week after current US President Joe Biden was heavily criticised by the crypto industry after vetoing a resolution. Trump is taking a counter position here for political gain.
US-based crypto exchange Kraken is considering a funding round to raise more than 100 million US dollars for the company ahead of a potential initial public offering (IPO), according to media reports.
According to a report by Bloomberg on 6 June, citing people familiar with the matter, Kraken is considering a funding round to raise more than $100 million by 2025. According to the report, the exchange stated that it is ‘always exploring strategic paths’ towards global crypto adoption, but did not comment specifically on a potential IPO.

Kraken is facing a civil lawsuit filed by the US Securities and Exchange Commission (SEC) in November 2023. The regulator accuses Kraken of operating as an unregistered exchange and ‘making a business decision to defraud hundreds of millions of dollars from investors’, in alleged violation of US law.
In 2021, Coinbase became the first crypto exchange in the United States to go public and list its shares on the Nasdaq.

Digital Asset Market:

Market report including trading idea

The majority of digital assets experienced a quiet trading week, but the market continues to rank at high price levels.
After the media reports surrounding the Ethereum ETFs levelled off and the anticipated ‘calm’ returned, the price changes did not cause any surprises and volatility fell noticeably. However, this was without any major profit-taking or sell-offs, which means that positivity continues to prevail in the market and breakouts can occur at any time. The Bitcoin spot ETF inflows in the US make it clear that demand is always high and that the market is therefore fundamentally supported and strengthened!
Over the week as a whole, the market is down by around -2%.
The message for the coming week is that a volatile trend could emerge if the consolidation ends.

Chart technology

From a chart technical perspective, Bitcoin is now in a narrow trend channel between $68,000 and $72,000, which means that a new all-time high is possible at any time with ‘minor’ positivity, but also a trend reversal and the formation of new support levels below $65,000. The current consolidation tends to provide a positive backdrop here, as there is no large-scale profit-taking. This ensures a ‘longer-term’ willingness to invest on the part of market participants and a stabilised market situation.

The next price targets in the event of a positive trend: ~$70,500, ~$72,000, ~$75,000

The next price targets in case of negative development: ~$66,500, ~$65,000 ~$62,000

Trading idea

The focus should be on volatile trend breakouts. Good entry points could arise as soon as the market picks up speed. Altcoins in particular could then represent a good investment

Weekly Overview

As usual, we are also providing detailed videos for those who want to delve deeper into the subject.

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