Will demand fall noticeably over the summer months?

Thought of the week

Historically, the summer months are often quieter and less volatile than the rest of the year, provided there is no market-relevant news. This year could be a little different due to the Ethereum ETF issue, but the falling demand for gold futures could be an indicator of a decline in demand over the next 60 days.

Digital Asset News

Since the end of May 2014, more than 100 billion US dollars have been raised for cryptocurrency start-ups.
Looking back, there have been ups and downs amid regulatory uncertainty and market volatility. But over the last four years, both the cap and floor have been raised, despite continued ups and downs.
Data from TVL aggregator DefiLlama shows that the cryptocurrency industry raised a total of USD 101.35 billion on 16 June 2024. In May 2014, just five years after the founding of Bitcoin (and one year before the launch of Ethereum), funding for cryptocurrency start-ups totalled a comparatively meagre USD 17.14 million.
Ten years later, in May 2024, funding in the industry has now reached USD 280.25 million, significantly more than ten years ago, but far less than the previous month’s figure of USD 777.11 million.
This illustrates that a lively and structurally valuable investment landscape around digital asset companies exists and will continue to grow.

According to Eric Balchunas, ETF analyst at Bloomberg, the long-awaited Ethereum spot index funds (ETFs) could begin trading in the United States as early as 2 July.
“We are moving our projected Ethereum spot ETF launch date to July 2,” Balchunas wrote accordingly in a June 15 post on X (formerly Twitter), noting that the U.S. Securities and Exchange Commission’s (SEC) feedback on ETF applicants’ S-1 filings has been “pretty cursory, nothing major,” and therefore asked for feedback from applicants within the week.

“There’s a good chance they’ll declare them effective next week and have them off the table before the holiday weekend. Anything is possible, but that’s our best prediction,” he added, referring to American Independence Day, which is celebrated every year on 4 July.
Gary Gensler, head of the SEC, said “sometime in the summer” is likely, but the acceleration could have a positive impact on the markets.

Deutsche Telekom has announced that it will start mining Bitcoin, taking the next big step towards crypto.
The major German telecommunications company has been operating its own Bitcoin node and several nodes in the Lightning Network since 2023.

Dirk Röder, Head of Web3 Infrastructure and Solutions at Deutsche Telekom, explained this in a presentation at the BTC Prague crypto conference:
“Since 2023, we have been operating a Bitcoin Node and several Bitcoin Lightning Nodes […]. I would also like to let you in on a little secret: We will soon be looking into digital monetary photosynthesis as well.”
Former Cointelegraph employee Joseph Hall then asked Röder to clarify whether he could explain the significance of this “digital monetary photosynthesis” in more detail and asked specifically whether Deutsche Telekom would get involved in mining Bitcoin. And Röder’s subsequent answer left no doubt:
“We will.”

Digital Asset Market

Market report including trading idea

The majority of digital assets experienced a trading week that was characterised by smaller but often negative movements.
There were no significant topics in the media that actively influenced the price trend, but the inflation data from the US was better than expected and hopes of falling key interest rates were quickly dashed by Jerome Powell’s statements, so that negativity prevailed.
Over the week as a whole, the market is down around -4.5%.
The message for the coming week is that a positive consolidation could strengthen the market fundamentally.

Chart technology

From a chart technical perspective, Bitcoin remains in a narrow trend channel between $65,000 and $70,000. Larger volumes in the market could lead to a trend formation at any time, but spot demand would have to pick up significantly for this to happen.

The next price targets in the event of a positive trend: ~$68,500, ~$70,000, ~$71,500

The next price targets in the event of a negative trend: ~$65,000, ~$63,000 ~$61,500

Trading idea

The focus should be on possible volatile trend breakouts. These could also tend to be negative this week. Good entry points could arise as soon as the market picks up speed or forms strong support zones. Bitcoin & Ethereum in particular could then represent a good investment.