Dear Teroxx Community,

This week we saw a digital asset market that was largely sideways, however some altcoins were able to make larger positive moves.

Weekly overview

As usual, we are also providing detailed videos for those who want to delve deeper into the subject.

Latest crypto news

Even though the altcoins are currently in the spotlight, market leader Bitcoin still has a lot of room to grow. More and more Bitcoin (BTC) are leaving the major crypto exchange Coinbase, which is a positive sign for the further price development of the market-leading cryptocurrency. Since the American crypto exchange was one of the most important exchanges in the current record year, it can be concluded that investors prefer to hold their Bitcoin for the long term instead of selling them again soon.

The payment company Square, under the aegis of Twitter CEO Jack Dorsey, benefited massively from the Bitcoin surge in Q1. U.S. payments company Square Inc, which relies heavily on Bitcoin for strategy and conviction, doubled its projected revenue last quarter thanks to the market-leading cryptocurrency’s record run.
Financial services provider Refinitiv had previously forecast that Square’s stock would come in at 16 cents per share in Q1 2021, however, the payment services provider actually managed to climb to 41 cents earnings per share (EPS) in the period. Bitcoin alone brought in $3.5 billion in revenue for the company, a 1,000% increase over the past 12 months.
Square’s Q1 net income also jumped 79% year over year, coming in at $964 million. More than half of that profit can be attributed to the Cash app – the company’s mobile payments app where cryptocurrencies can also be purchased.

After much back and forth, Goldman is finally launching a trading desk for cryptocurrencies. The news comes just a few hours after it was announced yesterday that Goldman is now offering so-called “non-deliverable forwards” (NDFs), a financial product similar to futures, for bitcoin. The bank deliberately chooses the path of such a derivative, so that it does not have to expose itself to the risk of holding the cryptocurrency, because the respective contracts are settled in U.S. dollars, not in Bitcoin. There has been a real back-and-forth at Goldman regarding cryptocurrencies. Already at the end of 2017, there had been first rumors about a trading desk, which, however, did not materialize at first. In 2019, Goldman Sachs CEO David Solomon then even denied the alleged plans. Now, the investment bank seems to have made a U-turn, at least in this respect.

Technical term of the week

Altcoin season: Describes a market phase in which alternative digital assets “outperform” bitcoin (rise more strongly in percentage terms). We see this scenario more often after major positive moves in Bitcoin, when it enters a sideways phase. Subsequently, the focus shifts to the altcoins and they see large volume gains.

Crypto Market

Last week we saw market moves that pulled bitcoin off of local lows, but failed to provide any new positive momentum. After Bitcoin saw a sell-off from the levels around $58,000 and formed support at ~$54,000, these price losses were recovered over the week, but the resistances at ~$59,000-$60,000 could not be attacked or broken. Overall, bitcoin has been “going sideways” since early May. This brings opportunities in the altcoins. These have increased volume and perform strong positive movements in phases. However, not all altcoins were able to “push”, which meant that not the entire market rose over the week. Nonetheless, the market capitalization saw slight gains, which underpins a positive trend in altcoins.

BTC/USDT, 60

Bullish outlook: $60,000 remains the biggest resistance currently. A sustained break of this could take the market to new highs.

Bearish outlook: $55,000 continues to serve as major support. A loss of this level would make a test of $50,000 likely.