Crypto Roundup — June 22nd

Sofie Hendrick
Jun 22 · 3 min read

The stock market has tightened its grip on cryptocurrency again, with the two markets trading in tandem over the past week.

Bitcoin has fallen 1% over the last seven days after an attempted recovery was capped at $9,600. Meanwhile, the S&P 500 is flat after efforts to restart the U.S. economy were thwarted by an acceleration of new coronavirus cases.

Delta has partnered with eToro to allow users to invest via an accredited and bespoke platform.

As several analysts have pointed out, the correlation between equities and cryptocurrency appears to strengthen during times of uncertainty. This is shown by the CBOE Volatility Index (VIX), also known as the “Fear Gauge”, which has ticked up this week as bitcoin traveled alongside stocks.

This Week’s Highlights

  • Ethereum Stalls as DeFi Surges
  • Chainalysis Confirms Institutional Presence

Ethereum Stalls as DeFi Surges

DeFi is the word of the week. This segment of the cryptocurrency market is heating up with a sudden surge taking the amount of Ether locked in DeFi smart contracts to over $1.5 billion, according to DeFi Pulse.

This activity is reflected in the number of transactions on the Ethereum network, which has pushed up to a level not seen since the price spiked to $360 in June 2019.

At present, however, the price of Ethereum hasn’t responded to the rising activity. The second-largest cryptocurrency climbed 1.5% over the past week to trade at $235, but is still capped by poor market sentiment and bitcoin’s sideways crawl.

Chainalysis Confirms Institutional Presence

Blockchain detective firm Chainalysis has turned its attention to analyzing the bitcoin market, finding that professionals are now responsible for “85% of all the USD value of Bitcoin sent to exchanges.”

These large traders account for only 4% of the number of transfers, but “are the most significant contributors to large market movements,” according to Chainalysis. This data confirms the growing presence of big traders, as highlighted by Fidelity in a recent report.

Delta has partnered with eToro to allow users to invest via an accredited and bespoke platform.

The Week Ahead

Bitcoin’s ongoing correlation with stocks makes it vulnerable to broader market turmoil. This could come to a head on Wednesday with the release of the June World Economic Outlook from the IMF, which is widely expected to be negative.

Friday is set to be a big day in the cryptocurrency derivatives market, with a number of options contracts set to expire alongside quarterly futures. As expiry dates typically boost volatility, and bitcoin has now been stuck in a range between $8,800 and $10,400 for almost two months, traders are likely to be hoping for a sudden move to bring an end to the sideways market.

Written by a team of experienced financial analysts at eToro.

This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results.

Delta — Bitcoin & Crypto Portfolio Tracker

Delta — Keep track of Bitcoin & 5000+ other…

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store