Market Overview
The crypto market capitalisation has stabilised at a low of $2.14T, having lost its recovery momentum in the second half of June after touching the 61.8% line. Consequently, there is a risk of a bearish expansion pattern forming, with the potential for a decline to a market capitalisation of $1.6T, a quarter below the current level. A break below the early-June lows would confirm this scenario, although increased buyer activity is evident near current levels. In any case, the stock market and the US dollar remain the key drivers, while cryptocurrencies are reacting to changes in the fundamental backdrop.
Bitcoin is trading below $63K, once again hovering near its seven-day lows. At these levels, the leading cryptocurrency remains close to its 200-week moving average. A dip towards this line in 2022 marked the start of nearly six quarters of poor performance, with prices hovering near this curve; in 2018, such a period lasted six months, and in 2015, nine. In other words, history suggests we should brace for a crypto winter rather than a rapid rebound.
News Background
Strategy purchased an additional 520 BTC last week for $34.9 million. The company now holds 847,363 BTC, acquired for $64.1 billion at an average price of $75.7K per Bitcoin.
Investment firm Strive acquired 759 Bitcoins last week for $50 million at an average price of $65.9K per coin. The total Bitcoin on Strive’s balance sheet now stands at 19,864 BTC. Since January, the company has increased its holdings by approximately 3,700 BTC.
BitMine has increased its Ethereum reserves to 5.67 million ETH, having purchased an additional 52,203 ETH over the past week. BitMine’s reserves now account for 4.7% of the total Ethereum supply.
BitMine Chairman Tom Lee remains optimistic about ETH despite incurring multi-billion-dollar losses on his positions. In his view, the crypto market is currently in the early stages of a ‘crypto spring’.
Mexican billionaire Ricardo Salinas Pliego has compared investing in Bitcoin to investing in property. He urged investors not to fixate on short-term price fluctuations but to view BTC as a means of preserving wealth for many decades.
The FxPro Analyst Team
