Markets
Second week of June 2024
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There were many big changes in the world of cryptocurrencies in the second week of June 2024. There were big price changes, regulatory changes, and strategic predictions. Check out the top 10 news that changed the crypto market during this period.
Bitcoin (BTC) Price Drops to $69K, Leading to $450 Million in Liquidations
The drop came after a good jobs report in the US, which dashed hopes of a Federal Reserve Interest Rate cut. The market also fell because Roaring Kitty’s YouTube live stream was not very interesting. The sale caused liquidations worth US$450 million, the largest amount since mid-April.
Mainstream Crypto Adoption Has Increased in Recent Months, Says Canaccord
Galaxy Digital has a lot of institutional exposure and works with big names in the ETF Market, such as Inveco, DWS and Itaú, which is good for its future. Additionally, the value of the company’s Helios mining facility in Texas could increase if power-hungry AI companies continue looking for ways to work with bitcoin miners.
AI-Linked Crypto Tokens Underperform as Apple Event Fails to Impress Traders
AI-related tokens on the CoinDesk Computing Index fell 2.5%, less than Bitcoin (BTC) and the CoinDesk 20 Index as a whole.
of the apple event revealed its AI plans, such as Apple Intelligence and a partnership with OpenAI. However, after the news broke, Apple shares fell almost 2%, showing that the market was disappointed, despite the main US stock indexes rising.
Federal Reserve should cut US interest rate as restrictive stance is increasing inflation, Democrats say
They say keep interest rate high for a long time is slowing down the economy and doing nothing about the main causes of inflation. The senators want to move away of the 2% inflation target because high rates make things like housing, construction and car insurance more expensive, which could cause a recession.
They point out that rates have already been cut by the European Central Bank and the Bank of Canada and say the Fed should do the same.
Will Trump defeat Biden? Polymarket traders are betting on this.
Prediction Markets about Polymarket show that Donald Trump has a 56% chance of defeating Joe Biden to become President of the United States in 2024. The FiveThirtyEight polling average, on the other hand, shows a much smaller margin.
Non-US Polymarket users may favor Trump because they are required to do so through an agreement with the Commodity Futures Trading Commission. Trump supports cryptocurrency. But past trends show that these markets often reward those who are ahead of the competition.
Polymarket traders also do not think Trump will be convicted of another crime before the election; they think it’s only 14% likely.
Crypto and AI Could Be a $20 Trillion Megatrend, Says Bitwise
An asset manager called Bit by bit said in a report that artificial intelligence (AI) and cryptocurrency could add $20 trillion to the world economy by 2030. The resources that bitcoin miners possess, such as powerful chips and advanced cooling systems, are a good match for AI needs in data centers, chips and electricity.
The report talks about partnerships like CoreWeave’s agreement with Scientific Center for AI services worth $3.5 billion. AI and cryptography could work together in areas other than mining, such as verifying information and creating virtual assistants. This means that both industries have a lot of room to grow.
SEC Approval of ETH ETFs Paves the Way for Ethereum Dominance
Ethereum (ETH) exchange-traded funds (ETFs) were recently approved by the SEC. This could have a greater effect on Ethereum than Bitcoin. Bitcoin will always be a secure way to store valuebut Ethereum has a lot of competition from other smart contract platforms.
The SEC’s approval is expected to make regulations clearer, which will attract institutional investors and strengthen Ethereum’s position as a leader in the blockchain space. Ethereum is still the most popular place for developers to workand is home to major projects like EigenLayer, Ethena, and BlackRock’s BUIDL.
If the price of ETH rises, it could further boost the Ethereum DeFi economy. This could make Ethereum the “Amazon” of the digital asset economy.
Bitcoin (BTC) Price Gives Back Gains on Aggressive Fed Outlook
The Federal Reserve held its key federal funds rate steady at 5.25% to 5.50% and said it would only cut rates by 25 basis points this year, below its original forecast of three cuts. Although there has been some progress towards the 2% inflation target, Fed Chairman Jerome Powell highlighted that inflation is still too high.
Inflation slowed in May, according to the US Consumer Price Index report. This initially helped cryptocurrencies and stock markets. But the Fed’s “hawkish” outlook tamed these rises. As the market closed, Bitcoin (BTC) fell to $67,300, erasing previous gains. US stocks and bonds also gained, but not as much as before.
MicroStrategy (MSTR) Is Building the World’s Largest Bitcoin (BTC) Company, Says Bernstein
Bernstein believes Bitcoin could reach $1 million by 2033 and be worth $200,000 at its peak in 2025. The firm has started covering Microstrategy, which is the largest company that owns Bitcoin. They gave the stock an outperform rating and a $2,890 price target. The 214,400 bitcoins that MicroStrategy owns are worth about $14.5 billion. Since 2020, the company has used bitcoin as a reserve asset.
Michael Saylor, who started the company, made MicroStrategy a leading Bitcoin company. Bernstein believes Bitcoin will be worth $500,000 by 2029 due to high demand for spot ETFs and limited supply.
Nigeria Drops Tax Charges Against Binance Executives Tigran Gambaryan and Nadeem Anjarwalla: Family Spokesperson
O IRS (FIRS) of Nigeria has dropped tax charges against Tigran Gambaryan and Nadeem Anjarwalla, two Binance executives. The charges were amended to only name Binance through its local representative.
Even so, the two executives continue to be named in a money laundering case. Gambaryan, responsible for preventing financial crime at Binance, is still detained and faces serious health problems. There will be another trial date for the money laundering case on June 19.
Gambaryan’s family wants the U.S. government to help release him immediately because his health is deteriorating.
Key Takeaways
- Bitcoin falls for $69K: After a good US jobs report, Bitcoin fell to $69,000, which caused $450 million in liquidations.
- More people are using cryptocurrencies: Canaccord raised Galaxy Digital’s price target to C$23, citing strong partnerships with institutions.
- AI-Linked Tokens, like Render and Fetch, don’t work well. When Apple had a bad event, AI dropped 3-5%.
- Democrats want the Federal Reserve to lower interest rates: Senators called on the Federal Reserve to cut rates by 5.5%, saying high rates slow the economy.
- Prediction markets put Trump ahead: Polymarket gives Trump a 56% chance of winning the 2024 election, which is much more than most polls say.
- A big trend in cryptography and AI is that they could add $20 trillion to the world economy by 2030, according to Bitwise.
- Effects of Ethereum ETF approval: If the SEC approves Ethereum ETFs, it could give Ethereum a big boost in the market.
- The Federal Reserve kept interest rates the same and said they would only cut fees once this year, which affected the price of Bitcoin.
- MicroStrategy Bitcoin Bet: Bernstein believes that Bitcoin could reach $1 million by 2033, which shows MicroStrategy’s plan.
- There was tax charges against Binance executives in Nigeria, but those charges were dropped. However, the executives are still investigated for money laundering.