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Morning‌‌ ‌‌Update—June 21st—Macro and Crypto Markets

Morning‌‌ ‌‌Update—June 21st—Macro and Crypto Markets

Do repost and rate:

Rated:112

Last Friday, in traditional markets, we saw a pretty strong risk-off session. The dollar index rose, as it had in the previous sessions already, and, with a stronger dollar, equities looked more expensive and were sold further. We also can see gold falling; losing as much as 7% over the last week.

BTC is not immune to this. One can see that it’s been going down for the past six sessions or so, from the recent high at $41,000 to Sunday’s intraday low at $33,300 -that’s a 20% differential.

While the move might sound scary, in reality we’re still just trading in the range discussed in previous briefings, between 32K and 42K. We’re essentially going sideways with several days up and then down.

The BTC dominance remains steady, currently at 45.25, neither up nor down. Looking at yesterday’s session, though, we can see alts outperforming. A big factor in Sunday’s drop is the public picking up on the BTC hashrate drops but so I suspect alts, mined differently, just looked more attractive.

Amongst the best performers, we saw COMP, GRT, AAVE and LINK. On the latter, LINK, it’s interesting to see exchange reserves falling further, suggesting less and less selling pressure, which ultimately is a positive.

Despite the negative news in the BTC space with regards to China cracking down further on miners and thus having a real impact on the global network’s hashrate, I find comfort in positive data found on Glassnode. One chart tracking the exchange inflows and outflows shows a restart of negative position change, essentially that more people are taking BTC’s out than putting them in to sell. Another one, somewhat similar, shows a bounce in illiquid bitcoins, meaning coins that aren’t moving around; with the move down from 60K, a lot of players moved bitcoins but it seems that this has died down somewhat.

Away from on-chain data and price action, it’s great to see Portugal granting the first crypto exchanges operating licenses, meaning a piece of regulation specifically made for crypto exchanges as opposed to general payment/banking services.

Along with this development, it was interesting to see two banks -BBVA and Goldman Sachs- move forward with ramping up their own bitcoin trading activities and trading capabilities offered to clients.