Dear Teroxx Community,
This week we saw a digital asset market that once again ran through a consolidation. This means that the prices of most digital assets hardly changed on a weekly basis, but we saw a push on monday morning – so a trend could start!
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
Investment products for the market-leading cryptocurrency Bitcoin (BTC) are already noting “massive” inflows of capital on the first days of the new month of June, indicating that buying interest in the crypto market leader is picking up noticeably. So while the bitcoin price is desperately seeking buying interest to prevent further losses, at least on another level it is evident that interest in BTC is far from extinguished.
According to Arcane’s data, institutional investors in particular have invested disproportionately in bitcoin ETPs in the current month and the previous month.
Accordingly, a record amount of more than 205,000 BTC is currently invested in the Bitcoin ETPs under review, including, for example, the leading ProShares Bitcoin Strategy ETF.
Christopher Waller, a governor from the Board of Governors of the U.S. Federal Reserve, emphasized during the SNB-CIF Conference on Cryptoassets and Financial Innovation in Zurich that regulation of the crypto industry is needed for it to achieve the long-awaited mass adoption. “New technology – and the lack of clear rules – has mostly resulted in new assets being created, but many existing ones have been destroyed,” as Waller appropriately points out.
While experienced investors know how to behave in unregulated markets and may not even want regulation, without regulation, however, there is still a clear lack of trust among the masses.
For financial intermediaries, on the other hand, regulation is desirable because otherwise they run the risk of being held liable by inexperienced crypto investors. Thus, the opinion of the central bankers is clear: Appropriate regulations strengthen and protect the markets!
Venture capital investments in the crypto industry have almost doubled since last year, but have fallen by 38.2 percent since April. According to recent data from Dove Metrics, venture capital investments in cryptocurrencies have declined 38.2 percent overall in the past month, from $6.8 billion in April to $4.7 billion in May. However, they are up 97.8 percent year-over-year.
Data on the distribution of investments show that 21 percent went to infrastructure companies and 14 percent to startups in the DeFi sector. CeFi and NFT projects each accounted for 13 percent.
This shows that venture capital funds prefer to play it safe and invest in core technologies that actually bring innovation to the crypto space.
Technical term of the week
Risk capital: Describes a small portion of an investor’s liquid assets that is invested in markets that have enormous but at the same time riskier growth potential. Often, depending on the risk appetite, this value is between 1%-10%.
Digital asset market
The trend channel, which has prevailed for several weeks now, was confirmed again, but we saw a nice market push on monday morning, as the world markets opened green – this could be a bullish sign for the coming week!
Bullish outlook: If the local high at ~$32,000 is broken in the long term – $35,000 per bitcoin and $2,000 per ether would be the overarching price target.
Bearish Outlook: If the trend channel is broken to the downside, the support zone at ~$27,500 could be retested.
