Macro Overview
- US Q1 GDP came out to be positive, growing at 2.0% surpassing the anticipated forecast of 1.4%.
- Another promising development was seen with the recent U.S. initial jobless claims data, which reported 239,000 compared to the projected 265,000.
- The UK passed a landmark bill establishing crypto and stable coins as regulated financial activities. The bill which was first introduced in July 2021, will bring crypto asset businesses under the supervision of the Financial Conduct Authority (FCA).
- However, after the recent press release from the US Fed chairman, market sentiment is increasingly skewed toward the anticipation of tighter monetary policy. Specifically, market participants are now pricing in an 82% probability of a 25 basis point rate hike at the next Federal Reserve meeting. Should this expectation come to fruition, it would bring the federal funds rate to a range of 5.25-5.50%, reflecting the central bank’s response to stronger economic growth and employment data.
Crypto Markets Overview
- Bitcoin’s correlation with tech stocks has diverged further, standing at just 3% in June, compared to an average of 60% in 2022. indicating that crypto assets are increasingly charting their course.
- Bitcoin’s market cap dominance soared above 58%, its highest level since 2021, mainly driven by growing interest from institutional investors like BlackRock and Fidelity filing to launch spot Bitcoin Exchange Traded Funds (ETFs); Micro Strategy purchasing additional 12,333 BTCs for about $347 million, growing its cryptocurrency holdings to 152,333 BTC
- Bitcoin ETF race boosts crypto investment products to $33.4 Billion AUM in June. Digital asset investment products have seen their total assets under management surge 9.05% over June to reach $33.4 billion, after rising around 69.5% year-to-date.
- BTC % held on exchanges fell to its lowest level in over 5 years signaling that investors are becoming more confident in the long-term future of Bitcoin.
- Tether, the stablecoin issuer for USDT, signed a groundbreaking MoU with the Georgian government to develop a state-of-the-art P2P infrastructure. This partnership aims to attract global attention and investment, transforming Georgia into a decentralized tech hub.
- Ethereum deposit contract value reaches a new all-time high at 25.8Mn worth $48.7Bn. Close to 20% Supply of ETH is staked right now with the supply ratio. This represents a doubling since the start of the year and suggests that there is growing interest in staking ETH.
- Venture capital firms have invested a record $707 million in metaverse projects in the first half of 2023. This represents 44% of all web3 investments in the same period.
Bitcoin Technical Analysis
Source: TradingView
Summary:
- BTC price remained in a sideways zone between $28,850 and $31,350 this week.
- At around $31,000, there is a supply zone where BTC is accumulating for its next move.
- BTC is currently above the 20,50,100, and 200 EMA Daily, indicating a bullish outlook.
- If BTC breaks the resistance at $31,400, it has the potential to reach the $32,000 level.
- Technical indicators are signaling a neutral-to-buy signal for BTC.
Ethereum Technical Analysis
Source: TradingView
Summary:
- ETH recently retested the 50EMA (Exponential Moving Average) and bounced back after breaking out from a descending trendline last week.
- With the general market being bullish, ETH appears strong for the medium term.
- On a macro view, the chart shows that ETH is receiving inclined support, further supporting a bullish outlook.
- However, ETH needs to overcome two important resistance levels at $2022 and $2164 respectively.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The Content is for informational and educational purposes only. The Content is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or securities or virtual digital assets or to participate in any investment or trading strategy.The Content or any part of it is not legal, financial, investment or tax advice. The calculations, data, risk return formulations, performance or market capitalization indicators are based on the independent data sourced by CoinDCX or third parties. Past performance is not indicative of any future results.
