InvestMacro

After the drop to 20,200 USD the leading crypto returned to 21,096 USD. The asset seems stuck near 20,000 USD, with a breakaway of which a pathway to 10,000 USD can open.

As you remember, sales started after the June meeting of the US Federal Reserve system. The market is seriously worried about a slow-down in the US economy due to the toughening of the credit and monetary policy. Previous view remains valid: the Fed plans to lift the interest rate at each meeting scheduled for this year. Will the economy manage – good question.

Currently, futures for the Fed’s interest rate suggests growth by 75 base points at the July meeting with a probability of 87%. Capitalisation of the crypto market is now evaluated as 892 billion USD. It dropped under 1 trillion USD for the first time in 18 months. The share of the BTC is 44.0%, ETH – 14.8%.

Top 10: leaders of falling

Since yesterday, the most liquid coins lost quite a decent part of their weight. For example, the BTC once fell by 6.6%, the ETH lost 8.8%, while the SOL suffered even more (-9.4%). The meme coin DOGE dropped by 5.4%. Only the ADA remained more or less stable (-4.0%).

Novogratz: money will return to crypto

But only when the Fed stops lifting the rate, and the economy stabilises. This is what Mike Novogratz, Galaxy Digital CEO, said at the Morgan Stanley Financial conference. This looks quite logical, yet Novogratz is generally famous for being optimistic about the market’s future.

SkyBridge Capital: you will be sorry you didn’t buy it

The SkyBridge Capital trust increased its reserves of the BTC and ETH, using the best of the crash of crypto. The head of the company thinks that those who do not buy now will soon regret it. SkyBridge Capital values the investing potential of the instruments really high.

The BTC is so low that it looks like an illusion. However, this is the reality – on Wednesday the leading cryptocurrency goes on falling, trading at 21,363 USD. All the negative forecasts have come true, and in quite a short time. The BTC broke through all important support levels and dropped to the important threshold of 20,000 USD.

Panicking is based on the decline of the US stock indices S&P 500 and Nasdaq that the BTC correlates with. The indices, in their turn, fell after an inflation report in the US that demonstrated sky-rocketing of inflation in May by 8.6% y/y. This is the high of the last 40 years.

With all this, expectations of decisive actions from the Federal Reserve system at the meeting in June grew noticeably. The meeting will end today. The Fed can save the cryptomarket from freezing, and yet it can bring it down even deeper.

Today a close eye should be kept on the S&P 500 futures; it critically needs to return to 3,800-3,820 points. If this happens, chances are that the indices and crypto will bounce off. Otherwise, let us remember this market beautiful.

If anything good happens, we will have time to discuss a positive scenario. However, the negative scenario is a breakaway of 20,000 USD downwards with a new goal at 10,000 USD. Anyway, the market is empty, so falling will be at a cosmic speed.

ETH: it can be cheaper

The price of the key altcoin dropped to 1,130 USD with a new sales goal at 1,000 USD. The ETH can fall even lower if the market situation remains so bad.

Binance resumed BTC withdrawal

The Binance exchange returned to full-scale work after certain issues and resumed withdrawing the BTC again. Earlier, some problems occurred to the system of transactions withdrawal, which meant users could not withdraw their BTC. With global market sales, these events heated up nervousness.

Considering the fact that everything around it is falling, declining, and plunging, the BTC is doing a good job. On Friday, the major cryptocurrency is balancing at $30,075.

The US stock market plummeted yesterday. The S&P 500 index broke 4,100 пунктов and may continue falling towards 3,600 if the conditions remain as questionable and disturbing as before. There is a correlation between S&P 500/NASDAQ and the BTC, although it’s been much weaker this week.

The BTC and the uptrend didn’t get along very well recently – but it’s rather clear why due to the market conditions. However, bears are also in no hurry to attack. The range of $28,000-$31,590 doesn’t let the BTC go, and the longer its borders remain solid, the stronger a breakout of this “flat” later will be .

The US inflation statistics for Mat will be the highlight of the day. The report is very important in anticipation of the upcoming US Fed meeting scheduled for the next week. In the evening, global markets may get more volatile.

LTC: Korean exchanges against

Major Korean exchanges are planning to delist Litecoin after the MimbleWimble upgrade in the asset network. The upgrade was intended to enhance confidentiality and made all Litecoin-based transactions non-transparent. The upgrade goes against South Korea’s anti-money laundering regulations, which have an aggressive stance against privacy coins. Bimeiti and at least 4 other crypto exchanges have already delisted LTC.

Binance will give away Shiba Inu tokens

New Binance users will get popular meme Shiba Inu tokens for free. The exchange is looking to attract more attention to its products, online courses and quizzes, and a giveaway is one of the most effective tools for that.

Ethereum: final rehearsal

The Ethereum network’s oldest testnet, Ropsten, was successfully merged to Proof-of-stake. In fact, it looks like a final rehearsal before the transition of the entire network to Ethereum 2.0 scheduled for August, and it’s a very important event for the company, its tokens, and the whole crypto market. Ethereum 2.0 is expected to be faster, more effective and might solve the key scalability issues.

The BTC rate is declining for the second day in a row. Today, it is trading at $30,228 USD, while yesterday it fell to $29,200, its weekly low.

There were some signs of local demand early in the week but not for long – the major cryptocurrency is now stuck between $29,200 and $31,590. The closest strategic resistance is at $29,000 – if bears break it, they may continue pushing the asset down to $28,000 or even deeper. At the same time, stock indices are reaching stability and bears are in no hurry to attack them. The fact that the BTC is losing its correlation with S&P 500 means that emotions are flooding the crypto but not the stock segment.

Meanwhile, we’ll keep an eye on what might happen.

BNB: a war on SEC has been declared

SEC, US Securities and Exchange Commission, started investigating Binance – it wants to know whether crypto exchange Binance Holdings Ltd’s initial coin offering in 2017 broke the agency’s rules. The point is to find out whether the coin was an unregistered security or not. The SEC often pays attention to such aspects and has investigated a lot of crypto projects in the past.

This week was really unlucky for Binance: Reuters reported that “for five years, from 2018 to 2021, the world’s largest cryptocurrency exchange Binance served as a conduit for the laundering of at least $2.35 billion”. The company disagrees with these accusations but doesn’t want to open its books.

At some point, BNB lost 11% – they have been selling it for the third consecutive day. On Wednesday, the token is retreating to $286.74 and there are chances it might reach $260.00.

Australia will replenish its budget with crypto

The mayor of the Gold Coast, one of the Australian towns, suggested that cryptocurrency could be used by residents to pay local taxes. So, now the regulating bodies are working on ways how digital assets may go into the budget and how to work with them in the future. For starters, there might be 95% in usual money and 5% in crypto. If this scheme works, it will help to understand what to do next.

On Monday, the BTC is growing, though yesterday the market had its doubts about this being possible. Main movements concentrate around $31,181. $29,000 remains an important threshold. Any steps over it downwards will become a bearish signal for a decline to $28,000, from where there will be a lot of chances for falling to $20,000. At the same time, there is evidence of a wave of growth forming. If the crypto manages to secure above $31,500, the way to $32,300–$32,700.

However, it must be acknowledged that current growth looks fragile. There is, indeed, evidence of the correlation with the US stock indices breaking down, yet this also provokes questions. All in all, it would be wise to keep an eye on the market and avoid decisive actions.

Chipotle: fast food can be paid for in crypto

Digital assets, meanwhile, are getting incorporated in our daily lives deeper and deeper. For example, one of the world’s largest fast food chains, Chipotle, is now accepting payments in crypto via the Flexa platform. An app will let clients pay for their orders in any of the 98 cryptocurrencies available, including ETH and BTC. The app requires downloading Gemini or the SPEDN platform for digital money storage.

The fact that daily goods can now be paid for in crypto can make digital money more attractive to users.

Buterin: banning PoW is a bad idea

Ethereum creator Vitalik Buterin criticised the ban imposed on carbon-produced electric crypto mining by the state of New York. He states that charging fees for carbon emissions would be more efficient so that part of the money could be used for compensations to people with low incomes.

Last week, the Senate of New York imposed a ban on mining for two years.

BTC improved pretty much in the last couple of days. On Wednesday, the major cryptocurrency is trading at $31,540. The crypto market capitalisation is currently $1.313 trillion and the BTC share is about 46%.

Some important resistance is now at $30,700. After fixing above this level, the BTC may continue rising towards $32,250 or even $33,500. On the other hand, if the asset gets back inside the range of $29,000-$30,000, a new bearish impulse might be much stronger than the previous one.

The correlation between S&P 500/Nasdaq and the BTC is rather weak right now. However, one should remember that it may revive at any moment – the US stock market remains rather unstable.

Top 10 cryptos: top gainers

The following assets have demonstrated good results recently – ADA (+28%), ETH (+6%), and BTC (+4.5%). A little bit behind but still quite good – DOGE (+3.44%), SOL (+3.41%), and BNB (+1%).

Terra: another hack

Mirror Protocol, a decentralized application on the Terra chain, was hacked last October but a $90 million hack went unnoticed and was discovered just recently. Just days after the discovery, the DeFi protocol suffered a further attack on 30 May. The crypto community believes that the hack went unnoticed because Terra pays little attention to the data analysis.

Crypto police will start operating in South Korea

South Korea will be the first country in the world to set up a digital asset committee, a ministry-level regulator. The committee will operate independently of the two primary financial regulators and keep an eye on the entire sector. The committee appeared in response to the recent declines in UST and LUNA.

Shiba Inu: too intriguing

The author of a meme coin called Shiba Inu, who still remains unknown, deleted their social network profiles. Ryoshi hasn’t been active on social networks, Twitter, for example, for over a year. The SHIB rate remains volatile and the emotional deeds of its creator will surely attract a lot of new users.

The BTC has been growing for three days in a row. On Monday, the leading cryptocurrency is rising to $30,550, which is quite a decent result. However, in the medium run, the crypto still looks complicated and dubious.

Over past week, the BTC lost 4.10%, the price secured in a channel between $28,500-$30,500. The support area of $29,000-$30,000 does not look as sturdy as before anymore; however, keeping an eye on it is still necessary. For now, most attempts to secure above %30,000 have failed; the quotes are being dragged down. The situation worsens due to the emotional strain: investors anticipate a crash in the US stock market. There is a correlation between the BTC on the one hand and the S&P 500 and Nasdaq – on the other. If anything goes wrong with the indices, sales will occur in the BTC. Or at least, this is what normally happens.

Quite curiously, over the couple last day, the S&P 500 and BTC lost their correlation. The US index grew by 6.58%, while the crypto market kept selling altcoins. Why so? Most likely, it was due to serious doubts that crypto exchanges will be able to grow by themselves, without additional support. By this trading day, the capitalisation of the crypto market is assessed as $1.198 trillion (losing 87 billion USD over the last week). The BTC share of the market is 46%.

To not lose the upward momentum, the BTC needs to secure above $31,700. If the price drops below $28,000, the way to $20,000 will be open.

This week, Chinese actions towards Taiwan are definitely worth attention. The situation has lots of risk in it. The question is, where and how they will show themselves.

ETH: correction might be successful

The key altcoin is successfully correcting after a decline last Friday. The current level is $1,907; buys have been occurring for three days in a row. It is too early to speak about even a successful bounce off the bottom of $1,702; but if the ETH secures above $1,943, the real decision of the market to buy will be obvious.

Stepn: China is forbidden

The Stepn project that implies earning tokens for walking and running, announced restrictions of the app in China. Access will be closed on 15 June. The decision must be explained by the desire of the company to go by the law: NFT and metaverses in China are considered to provide opportunities for organising financial pyramids.

To use the Stepn app, users need to buy NFT sneakers. Their use will yield the GST and GMT tokens. After the news about leaving China, both coins grew significantly.

The project is based on the Solana and BNB Chain blockchains.