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🥜 What just happened?
PLUS: Why this time is different
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What we’ve cooked up for you today…
🏦 Why is Bitcoin dumping?
🕰️ Is this time different?
🔥 That’s five in a row now
💰 And more…
MARKET WATCH ⚖️
Only the top 20 coins measured by market cap feature in this section
WHY IS BITCOIN DUMPING? 🏦
BREAKING: Bitcoin dips as ETFs break 19-day green streak, rumble over US inflation
Bitcoin fell 3.35% in the last 24 hours, hitting a weekly low of $66,800.
And it wasn’t just Bitcoin…
Pretty much every other major cryptocurrency experienced a major fall in price in the last 24 hours.
Why? 🤷♂️
Well, the US inflation data and the FOMC are scheduled for this week.
AND, the Bitcoin ETFs recorded their first daily outflow in a month.
Yesterday saw outflows from:
Grayscale: $39.5 million
Invesco Galaxy: $20.5 million
Valkyrie: $15.8 million
Fidelity: $3 million
BlackRock and Bitwise only saw net inflows of $6.3m and $7.6m respectively - nowhere near enough to counter the outflows
The Federal Open Market Committee (FOMC) is scheduled for this week - this is where they determine monetary policy (interest rates)
FYI, no one is expecting the Fed to announce a rate cut this Wednesday.
And Bitcoin’s price has typically “dumped” before the FOMC.
But Twitter user @CryptoJelleNL pointed out something very interesting…
The past 4 FOMC events have all coincided with local bottoms and >20% rallies for Bitcoin.
A bounce could be closer than most people think. 👀
Also it’s worth pointing out, a 3% dip is really nothing to worry about in the world of Bitcoin…
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IS THIS TIME DIFFERENT? 🕰️
The 2021 top was dominated by short sellers.
But this time we have the ETFs… This time is different…
That’s the latest thoughts out from Willy Woo.
Willy Woo was the pioneer of many of the on-chain analytics we use today.
In a recent Twitter article, Willy Woo made some observations on why he believes the 2024-25 bull market is nothing like the 2020-21.
The 2021 top was something that we’ve never seen before - it was dampened by futures short positions.
(investors betting that the price will fall)
Willy explains that this caught many analysts (including himself) by surprise.
This wasn’t possible during the 2014 and 2017 cycles.
Back then only spot markets existed and you had to own BTC to sell it.
“Given most coins were bought by hodlers, only a tiny fraction of coins could actually be sold. Thus we only ever had exponential blow off tops, created by no new buyers coming in at high prices.”
This lack of buying at higher prices means there was no demand cushion to soften the dips - that’s why the price crashed so hard during 2014 & 2017.
Willy explains that the 2021 top was unique, in that it was formed by outsiders selling down Bitcoin:
“Traders came in selling the pumps as they "accumulated" short positions with their USD collateral. Thus we ended up with an accumulation pattern, but in reverse. No exponential runaway top, just a muted slump.”
But this time, the ETFs are here…
And Willy notes that for a regulated TradFi investor, these ETFs are much cheaper than futures markets.
With all that said, this is what Willy expects to happen this cycle:
“As spot dominance returns, there's more chance of a proper bubble like the good old days. My mental model of this bull market is something of a merger between 2017 and 2020-21. i.e. BTC has the capability to punch a higher multiple than the 2019-2021 bull market.”
Basically Willy believes that this cycle WILL be different to the last one.
THAT’S FIVE IN A ROW NOW 🔥
Time for our weekly check in on digital asset fund flows. (globally, not just the US ETFs)
And the inflow streak is now up to five!
Last week’s inflows were MASSIVE, coming in at $2 billion.
This brings the 5 week streak of inflows to $4.3 billion.
As always, Bitcoin was the focus with $1.97 billion in inflows last week.
Short-Bitcoin saw its third consecutive outflow week with -$5.3 million.(sentiment remains positive)
Ethereum had it’s best week since March with $68.9 million in inflows.
But it was a relatively quite week for altcoins.
With XRP and Solana experiencing further inflows of $1.2m & $0.7m respectively.
The US once again experienced the majority of inflows, totalling $1.98 billion for the week.
Hong Kong, Canada and Switzerland saw net inflows of $26.1m, $12.7m & $10.6m respectively.
Sweden on the other hand experienced net outflows of $9.2 million for the week.
Last week was HUGE for digital asset funds.
Unusually, inflows were seen from almost all providers, with a continued (outflow) slowdown from Grayscale.
CoinShares believes that this turnaround in sentiment is a direct response to weaker than expected macro data in the US.
Some analysts have now brought forward their rate cut expectations.
(Just last week Canada cut interest rates)
Let’s hope this weekly inflow streak continues. 🙏
CRACKING CRYPTO 🥜
World's largest bank ICBC praises the evolution of Bitcoin, Ethereum as innovative financial assets. Researchers at the Industrial and Commercial Bank of China (ICBC) praised cryptos and digital assets in a research report on June 6.
Australia cracks down on online gambling with crypto, credit card ban. Australia has banned the use of crypto and credit cards for online gambling. Non-compliant betting companies face fines of up to $155,000.
Meme Sector Sees Sharp Sell-off as GameStop Losses Extend to 60%. A Solana meme parody of the actual company was down 25% in the past 24 hours.
Fireblocks adds Coinbase International for perpetual futures, spot trading. Fireblocks has expanded its services portfolio through a partnership with Coinbase.
WHAT WE’RE READING 📚
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CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
How much Bitcoin does Tesla currently hold? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: C) 9,720 BTC 🥳
Tesla currently hold 9,720 BTC.
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