Last week, the cryptocurrency market experienced a sharp rise, with a notable 16.53% rise in market capitalization from $1.01 trillion to $1.177 trillion. While the initial part of the week saw largely sideways movement but major announcements around Bitcoin ETFs fuelled the crypto markets upwards towards the end of the week. Fed Chairman Jerome Powell testified on 21st June and addressed a lot of topics in better depth than during the conference after the recent rate hike. The US indices showed no significant move as the macro conditions haven’t changed much for better or worse.
Bitcoin Price Analysis:
Over the past few days, the BTC/USD pair has been slowly going up. It went from $24,719 last week to over $30,700+ this week. The pair has moved past the 38.2% Fibonacci retracement line on the 4H chart. Buyers will try to push the price up to the $30,700-$32,500 resistance zone. This is an important level for the bears to defend because a break and close above it could start a new move up.
On the other hand, if the price drops sharply from where it is now and closes below $26,500, it will show that bears still sell when prices go up. The BTC/USDT pair could then go back to the strong support zone between $25,000 and $21,357
Fed Chairman Jerome Powell shared a lot of commentary around major factors that the Fed is keeping track of. Most of the commentary was in line with the concerns and outlook that we have shared over the past few months in our market outlook. The Summary of Economic projections, which was a big nail and was finally addressed with the commentary aligning with further hikes if the parameters related to inflation indicate so. The Core CPI data has been heated for some time now if the situation continues to remain the same, the already high chances of more rate hikes will become imminent, as highlighted in our previous commentary. Fed watch tool show that there is more than a 70% chance that rates will go up by 25 basis points in July.
Blackrock was seen to file for Bitcoin ETF, which further led to multiple industry and traditional giants applying for it within a short span. Firms like Fidelity, Invesco, Bitwise, Valkyrie, and WisdomTree have filled out fresh applications to provide Bitcoin ETF access to their huge customer bases. Blackrock has been making some big strategic investments and collaborations in the crypto space, and this just takes the confidence in the industry to the next level. Institutional custody providers saw a huge inflow of BTC, thus reaffirming the high pending interest for Bitcoin exposure by institutional investors. This event came as a breather amidst the ongoing legal struggles that the crypto industry is facing. A lot of early crypto firms are applying for different licenses to shift and set up businesses outside of the US. This contrasting behavior between different firms has flared a small tussle between the upstarts and the established players.
Bitcoin returns were 20.70% for this week. The Alpha Blue Chip Focused Strategy returns were 5.87% during the same period (15 JUN – 22 JUN). The Top Cap Digital Assets Strategy and Arbitrage Opportunities & Balanced Strategy returns were 3.98% and 0.23%, respectively.