3 June 2021
Nature is … healing
After May’s downpours, could June bring a fresh start?
At long last June is upon us, with markets rolling at full tilt as investors recover from the chaos of a remarkably chaotic two weeks. As our friends in the Northern Hemisphere usher in summer’s lush pastures, green is also returning to lagging portfolios around the world.
BTC’s monthly chart offers a clear, searing summary of May’s market movement, with the industry’s largest asset observing a 35% retrace from its open at $57.8k to a subdued close in the $37k region. Despite being only days old, June has begun with a confident recovery, solidifying support as Bitcoin marches to reclaim $40k. Ahead at $41k lies the infamous 200 Day Simple Moving Average (SMA), an indicator that garnered fresh interest as BTC crossed below it in May for the first time since April last year. Typically, the SMA is used to provide an indication of whether an asset is in a bull or bear market, and whether trends are likely to continue or reverse. Given that BTC has remained above the 200 SMA since it passed $8k, many analysts believe the recent crossing could spell a premature end to the bull run. However, with BTC once again knocking on the door of $40k, a cross back above the 200 SMA could ignite a fresh wave of optimism that carries the world’s most controversial asset past its already dizzying all-time highs.
Dominance
Bitcoin dominance has stabilized in the 42% region, down 3% since late May as investors tentatively diversify their positions back to higher-risk alts. Ethereum has retained its hold on the bulk of altcoin dominance, still inching ominously closer to BTC’s market share. While DOGE enjoyed revitalized hype following this week’s Coinbase listing, Binance Coin (BNB) has snuck its way past Tether into the hallowed Top 3. BNB, the native token of the Binance Smart Chain (BSC) network, has observed an 18% gain since the start of June, commanding a current market cap in excess of $63bn.
Forward Focus
Institutional players have been busy this past week, with major corporations diving further into the expansive world of blockchain. Antivirus provider Norton has announced a new feature which will allow individuals to partake in mining cryptocurrency via their software, though it remains to be seen how such a suite would work, given the intensive hardware requirements and fee considerations involved in mining activities. Visa, perhaps finally realizing the necessity of crypto adoption to sustain their business model, is looking into enabling seamless crypto-to-fiat payments for customers and merchants, focusing on cryptocurrencies, stablecoins, NFT’s, and CBDC’s.
Many crypto natives descended upon Miami this past weekend for the 2021 Bitcoin conference. Long time internet friends had the opportunity to meet in person for the first time and as they followed the white rabbit down the hole, were reminded that we’re all mad here. Likely the most interesting discussions included an overview of the exchange landscape (SBF, Caitlin Long, and the announcement that El Salvador intends to present a bill to have bitcoin recognised as legal tender in the country.
This week’s steady optimism may have been somewhat tempered for South African traders as SARS sent out information requests asking taxpayers to declare their crypto holdings. While not the most exciting development, steps towards regulation such as these are necessary for the maturation and widespread adoption of emerging crypto technologies.
In less than a decade, crypto has not only divorced itself from connections to illicit dark-net dealings, but has solidified its place as a real-world asset that governments and corporations worldwide are working to adopt. With the rate of development in the blockchain arena moving in exponential strides, it’s hard to fathom what the future hodl’s.
