Bitcoin as digital gold and hedging inflation. Really? BTC is under water while the metal you can hold breathes air; Cryptos Rebound Sunday

Don’t miss CoinDesk Consensus 2022the mandatory crypto and blockchain festival of the year in Austin, Texas this June 9-12.

Good morning. Here’s what happens:

prices: Bitcoin recovers $ 20,000; another crypto rally.

Insights: Old-fashioned gold surpasses its digital version.

Watch the latest episodes of CoinDesk TV for insightful interviews with crypto industry leaders and analytics. And sign up for First Moverour daily newsletter, which puts in context the latest movements in the crypto markets.

Prices

bitcoin (BTC): $ 20,510 + 8%

ether (at): $ 1125 + 13.2%

Biggest profits

The biggest losers

Markets

S&P 500: 3674 + 0.2%

DJIA: 29,888 -0.1%

Nasdaq: 10 798 + 1.4%

Gold: $ 1840 -0.5%

Bitcoin recovers $ 20,000; Other Cryptos Rebound

Rally on Sunday returned bitcoin above the $ 20,000 threshold it had held for much of last month, but analysts remained unconvinced that the jump would be lasting.

Bitcoin recently traded at around $ 20,500, up 8% from the previous 24 hours. At one point the day before the largest cryptocurrency by market capitalization he had fallen below $ 17,800, its lowest level since mid-December 2017, when bitcoin was close to the peak of the bull. This decline also fell below the maximum of this rise cycle, disproving the theory that bitcoin would not violate the high water mark of the previous cycle.

Ether, the second-largest cryptocurrency by market capitalization, followed a similar price pattern, falling to an almost five-year low below $ 1,000 before rising late over the weekend. He recently changed hands for about $ 1,120, more than 13 percent more than the day before. Other major altcoins were well on the green with LTC and AXS at over 17% at one point.

“We marked $ 19,000 – $ 20,000 and $ 16,000 – $ 17,000 as areas of interest and Bitcoin jumped out of the latter,” wrote Joe DiPasquale, CEO of BitBull crypto fund manager at CoinDesk. “However, unless it successfully maintains $ 20,000 with high volumes and bidding, we would not expect the rally to continue.”

Technology Nasdaq closed an otherwise awful week for shares with a modest 1.4% increase on Friday, while the S&P 500 rose by a fraction of a percentage point. S&P, which includes a significant technology component, fell 5.8% for the week and entered a bear market, meaning it is down at least 20% from its previous peak. The Dow Jones industrial average fell slightly.

Investors remain concerned about high inflation, which peaked at 40 in May, the continuing economic consequences of Russia’s invasion of Ukraine and the growing likelihood of a global recession. Last Wednesday, the US Federal Reserve raised interest rates with the biggest increase in more than a quarter of a century – three quarters of a percentage point – its last step in halting rising prices. Other central banks have also recently raised interest rates amid continuing rising energy prices.

Meanwhile, cryptocurrency markets also had to absorb a series of catastrophes, extending to early May, when the stable coin TerraUSD (UST) collapsed. Last week, the cryptocurrency lending platform Celsius announced that it was stopping withdrawals and the crypto hedge fund Three Arrows Capital is facing possible bankruptcy after suffering at least $ 400 million in liquidation, according to a report. Coinbase and a number of other major digital asset exchanges have also announced sharp job cuts. The index of fear and greed has remained in the territory of extreme fear for weeks and is now at 6, near its lowest level of all time on a scale from zero to 100.

BitBull’s DiPasquale expects volatility in cryptocurrency prices over the next few days due to the expiration of options, but added that “the macro trend is likely to remain a sword until we see the Federal Reserve change or at least weaken its position at the FOMC meeting in July.”

Insights

Analog gold surpasses its digital version

Bitcoin is called the best store for value by its fans; a digital version of gold that maintains all the best features of gold such as inflation hedging, while being more efficient and liquid thanks to blockchain technology, which Bitcoin protocol has pioneered.

But as the cryptocurrency faces a severe winter, it is perhaps one of the worst in history large crypto institutions On the edge of failurebelief in this paradigm is being tested.

In fact, compared to gold, bitcoin has been declining by more than 55% since the beginning of the year. Gold, by contrast, rose 2.45%.

(TradingView)

(TradingView)

And as bitcoin and ether ended the week in Asia, trying to break below $ 20,000 and $ 1,000, respectively, data shows that the worst is yet to come.

Data in the chain, spotted by CryptoQuant, shows that many bitcoins are on the move. CryptoQuant’s Yang Yu believes that either crypto hedge funds fill long-term collateral or market makers fill liquidity to fulfill sales orders to their clients.

“For what it’s worth, they’re bears in the short term, anyway,” he tweeted.

Keep in mind that a little over a week ago, bitcoin was at $ 30,000.

Important events

Holiday on June 16 in the United States

The fourth annual NFT industrial event (NFT.NYC)

9:30 AM HKT / SGT (1:30 AM UTC): National Bank of China interest rate decision

CoinDesk TV

In case you missed it, here is the latest episode from The hash On CoinDesk TV:

Tron’s TRX jumps as DAO has $ 220 million to buy tokens, investors withdraw $ 1.6 billion from Tether’s Stablecoin

The hosts of “The Hash” discussed the new wave of Tether buyouts as a fear of spreading a market infection, Tron DAO, which has $ 220 million to buy tokens and more.

Headlines

The moon only makes Bermudans love stable coins more: Digital assets are the future, Bermuda Prime Minister David Burt said at the Consensus 2022 conference. He is not worried that his country will be closed by jurisdictions such as the EU.

Terraform Labs, founder, VC companies, sued for allegations that investors were misled: The plaintiff claims that the so-called “Terra Tokens” resemble securities, regardless of the perception of investors.

Bitcoin fell below $ 20,000 for the first time since December 2020; Ether falls below $ 1K: The continuing dive into traditional financial markets and the panic over crypto lending platforms sent bitcoin to teenagers for the first time in more than 18 months.

Longer reading

Difficult times in cryptocurrency lead to price and macro risk: Only the first of a series of risks that we think about in these days of cryptocurrency.

Today’s crypto explanation: How to buy ether

Other votes: The crypto billionaire says the Fed is driving the current downturn

Spoken and heard

“Now that the failures of two key systemic ventures – Celsius and the Terra Luna project – are shaking the crypto markets, I hope that people in this industry can finally appreciate the value of asking questions and finding failures. and holding people accountable for their shortcomings is the way the industry will improve and grow. “(CoinDesk Chief Content Officer Michael Casey) … “Despite our efforts, we failed to get the whales to reduce the risk or even get in touch with them. With the way things are unfolding with the unresponsiveness of the whale, it is clear that action needs to be taken to mitigate the risk. “(Solana DeFi platform in a blog post)

UPDATE (June 19, 2022, 12:35 UTC): Adds information about the fear and greed index.

Related Posts

Leave a Reply

Your email address will not be published.