Dear Teroxx Community,
This week we saw a digital asset market which again experienced major setbacks and this in step with the global financial markets.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
The downturn on the crypto market came in step with the stock market, as it also slid back into the red on June 10. While the S&P 500 has lost 2.9%, losses of 3.5% are again on the table for the Nasdaq Composite. Monday morning also began little encouraging for the price development, so that further selling pressure arose.
Trigger for the weakness are first and foremost the new American inflation figures, which are significantly worse than expected. As Cointelegraph had reported, inflation climbed to a “record” 8.6% last month, last recorded in December 1981.
Accordingly, the outlook is now pessimistic about BTC’s further price performance.
“Even if Bitcoin slips to 22,000 – 24,000, the prophecies of doom will still continue. So better not be too greedy when the time comes,” as trader Crypto Tony vicariously opines.
“Inflation is not at its peak yet, and Bitcoin hasn’t reached it either,” as MicroStrategy CEO Michael Saylor counters with purposeful optimism.
“Given the current macroeconomic situation, it doesn’t really matter that the price charts show that we are historically deep in oversold territory,” as crypto analyst PlanC comments in turn. To this he adds:
“As long as Bitcoin remains closely correlated with risky financials, I don’t see a drastic turnaround in the foreseeable future.”
So, price-wise, it is safe to assume that no quick fixes should be planned!
Probably the most important information service for institutional and professional investors now lists a total of 50 cryptocurrencies. As Alex Wenham, the Bloomberg product manager for cryptocurrencies, explains, the information service is thus reacting to the increasing “global interest of institutional investors” in the crypto market. Accordingly, they are increasingly looking for the ability to “smoothly incorporate digital assets into their workflow.”
Since 2018, Bloomberg previously listed the 10 largest cryptocurrencies in the terminal, including Bitcoin (BTC), Ether (ETH) and Ripple (XRP). Now, for the first time, there is an expansion to include 40 additional cryptocurrencies, including Solana (SOL), for example.
Su Zhu, one of the co-founders of the crypto investment fund Three Arrows Capital, is representative highly pleased about the expansion in the Bloomberg Terminal. For example, the latter wrote on Friday, “Pretty cool that they also link to the whitepapers of each project.” The adaptation of digital assets is progressing steadily, regardless of the price development.
Influential payments provider Mastercard is now expanding its payments network into non-fungible tokens (NFTs) and Web3.
As the financial services provider has now announced, it has already been working over the past year to incorporate NFTs into its own payment network. To that end, Mastercard has partnered with a number of leading NFT platforms to offer more than 2.9 billion cardholders direct access to the NFT market without having to buy crypto first.
Currently, interested investors must first purchase cryptocurrencies in order to then use them to buy NFT. Mastercard’s new feature would allow billions of card users to bypass this cumbersome process from now on and instead invest in NFTs directly.
“This integration aims to make crypto more accessible and accelerate the growth of the NFT ecosystem.”
Technical term of the week
Trend reversal: Describes a changing market situation. Mostly, this means a larger time horizon, so that new trends extend over days or weeks and are often followed by a clear price change. However, this effect can also be presented in smaller time intervals, so that there is always room for interpretation.
Digital asset market
Bitcoin was initially able to re-confirm support around $30,000 and make small price jumps with low volatility. Thus, a quick rise to ~$32,000 followed. However, resistance was found quite quickly and positive volume (buying power) dwindled. As a result, the market fell back quite quickly to the support levels, which could not be held subsequently. The market situation of digital assets was thus slightly negative and the global financial markets also experienced a heavy and negative week. The inflation figures from the U.S., the announcement of the ECB’s interest rate hike and general pessimistic outlooks on the near future sent almost all global financial markets down. Due to the correlation, digital assets also fell as a result. At the start of the week, these reports had not yet been processed in market terms, so that further sell-offs followed. Not only digital assets, but also the global financial markets are currently looking for support zones. Only after the establishment of these zones, a trend reversal could follow!
Bullish outlook: If the markets have overreacted, we could see a quick bounce to ~$28,000 – ~$30,000.
Bearish outlook: If global financial markets continue to fail to find a foothold, $20,000 in bitcoin could follow.
