The crypto asset market was mostly up on the 28th, despite tightening regulations in the UK and China. Bitcoin traded around $ 34,000 at the time of this writing, up 4% in the last 24 hours.
The Financial Conduct Authority (FCA) issued a warning on the 26th to the UK business of Binance, a crypto asset (virtual currency) trading service. Prior to the announcement, Bitcoin fell nearly 13% over the weekend, but buyers soon appeared and did not fall below $ 30,000. Bitcoin has fallen about 40% since April.
● Bitcoin (BTC): $ 34,409.44 (+ 4.64%: last 24 hours)
● Ethereum (ETH): $ 2110.96 (+ 15.66%)
● S & P 500: 4291.8 (+ 0.26%)
● Gold: $ 1778.36 (+ 0.38%)
● 10-year US Treasury: 1.472% (25th: 1.53%)
“To be clear, Binance is not banned by British authorities. This does not represent a shift in UK regulators’ policy towards crypto assets,” said Quantum Economics, a foreign exchange and crypto asset research firm. CEO Mati Greenspan wrote in a newsletter published on the 28th.
Other analysts have pointed out improved technical analysis as a bullish signal.
Last week’s weekly chart closing was “a bullish signal of a possible trend reversal,” said Alexandra Clark of UK crypto broker GlobalBlock.
Bear market drawdown
According to data site Koyfin, Bitcoin’s “drawdown” is currently around 45%. In the bear market in 2018, the drawdown reached 80% and it took about two years to recover.
Bitcoin generally suffers sharp and fast drawdowns before bear markets such as 2017 and earlier this year. As prices move from an uptrend to a downtrend, sellers take the lead.
Currently, some analysts expect Bitcoin to be in the $ 30,000-40,000 range. “We expect Bitcoin to level off in the coming weeks until there is a decisive move,” said Pankaj Balani, CEO of the crypto exchange Delta Exchange.
“If the global macro environment deteriorates due to lower global liquidity, Bitcoin could break the key level of $ 30,000 and hit the previous bull market high of $ 20,000. Until then, Bitcoin is likely to stay in this range, with a classic bull trap at over $ 42,000, “Barani said.
Bitcoin mining profit decline
Minor profits declined amid falling Bitcoin prices and exposure to regulatory pressure from China.
“The mining market is down about 65.5% from March and April levels. Currently, the 7-day average of mining revenue is around $ 20.73 million, the lowest level recorded in 2020. It’s still 154% higher than that, “blockchain data analytics firm Glassnode wrote in a newsletter yesterday.
Withdrawal of funds from Ethereum fund is the largest ever
According to a report released by crypto asset management company CoinShares on the 28th, withdrawal of funds (outflow) from crypto asset funds will be $ 44 million (about 4.9 billion yen) in the week until June 25. ), And the outflow of funds was the fourth consecutive week.
In particular, the withdrawal of funds from the Ethereum fund reached a record high of $ 50 million. This move is reversed from the trend up to 2021. Ethereum-related investment products have raised $ 934 million as investors diversified their money from Bitcoin.
●Fed Vice-Chair Qualls speaks positively to Stablecoin: Fed Vice-Chair Randal Quarles at a banking conference in Utah on the 28th, the United States should find a way to say “yes” to stable coins Said. This is in contrast to Lael Brainard’s recent warning that stable coins could pose a risk to consumers and businesses.
●Cyber attack on DeFi stable coin: SafeDollar, a DeFi (decentralized finance) stable coin based on the Polygon blockchain, was hit by a cyberattack. SafeDollar’s trading has been suspended and investigations are underway. Safe Dollar is worth $ 0.
●Elon Musk supports Dogecoin’s fee-cutting proposal: Elon Musk has announced on Twitter his support for a proposal to reduce transaction fees for Dogecoin (DOGE). Dogecoin temporarily rose to $ 0.262 and then fell to $ 0.255 at the time of this writing.
｜ Translation: coindesk JAPAN
｜ Editing: Takayuki Masuda
｜ Image: CoinDesk
｜ Original: Market Wrap: Cryptocurrencies Rise Despite Binance UK Warning