Our experts have analyzed the situation on the crypto market and told how it can change in the short term for BTC and the market as a whole

BTC ended the week with the best result since March 2023. The high of the week was recorded at $31,431.

Several factors increased BTC attractiveness to investors:

– BlackRock has applied to launch a spot crypto ETF. The American investment company was founded in 1988. And is one of the largest asset managers in the world with more than $9 trillion in assets at the end of 2021.
– Following BlackRock, four other organizations filed with the SEC: Fidelity, Invesco, Wisdom Tree and Valkyrie.
– The launch of the EDX Market digital asset platform. Citadel Securities, Fidelity Digital Assets and Charles Schwab Corp. invested in developing the platform.
– The SEC and Binance.US reached an agreement to avoid an asset freeze.
– The U.S. Supreme Court decided to stay the Securities and Exchange Commission’s (SEC) lawsuit against cryptocurrency exchange Coinbase.

The key event of the week was a two-day speech by US Federal Reserve Chairman J. Powell. Speaking to Congress on Thursday, he reiterated his view that further rate hikes are necessary to curb inflation. The strengthening dollar had no effect on Bitcoin dynamics. Investors were resigned to the prospect of further interest rate hikes.

The U.S. dollar began to recover amid risk aversion. This week its recovery may continue. As investors will become more cautious and avoid risky investments. They will keep an eye on inflation data in the U.S. and Europe. As well as speeches by central bankers at the ECB forum.

Important events of the week and prospects

One of the key reports to be released in the U.S. next week is the Personal Consumption Expenditures (PCE) report. And that will be released on Friday (June 30). The core PCE is expected to rise 0.4% in May. And the annual rate will remain at 4.7%. In addition, we will get personal spending and income data. Although the GDP data, which will be released on Thursday. And is an update, market participants can ignore it. Jobless claims will also provide new clues about the state of the labor market.

Buyers have been able to push the cryptocurrency’s price up to the $31,000 level of April 14, 2023. And that’s very good for them, as it has opened the road to the $34k level.

The technical picture on the hourly timeframe indicates a possible correction to $29,650.

Our experts note that the growth phase will last until the third decade of July. However, sentiment on the crypto market changes quickly. Therefore, fixing on long positions is possible, if the news become negative. In this case it may take until August to reach the target area.

Our experts talked about the causes of growth in the price of Bitcoin and how it will behave in the near future

Between June 15 and June 22, 2023, the most capitalized cryptocurrency, Bitcoin (BTC), went up nearly 24%. The coin crossed the local maximum, which was fixed on April 14, 2023 at the level of $30,958.

Bitcoin, followed by the whole market of digital assets, went up on the background of a number of positive news. Our experts believe that the driver could be the renewed race by major corporations for the right to obtain permission. This will make it possible to launch the first Bitcoin-based spot exchange traded fund (ETF) in the U.S. market and the interest of large companies in cryptocurrencies.

On June 15, it became known that BlackRock, a major investment firm, filed an application with the SEC to launch a bitcoin trust. This company’s initiative, if approved, could simplify institutional access to the crypto industry, our experts say.

On June 20, Deutsche Bank, one of Germany’s largest financial conglomerates, announced its intention to provide cryptocurrency services. In parallel, Wall Street giants Citadel, Fidelity and Charles Schwab launched their own decentralized crypto exchange. On June 21, one of the world’s largest investment firms, Invesco, applied to launch a spot Bitcoin ETF. All this news had a positive impact on cryptocurrency rates.

Major companies enter cryptoindustry

Interestingly, large companies enter the crypto industry despite the fact that it is under pressure from the U.S. Securities and Exchange Commission (SEC).

It is noteworthy that not only members of the crypto community do not approve of the SEC’s actions. But also representatives of the authorities. For example, Warren Davidson, a member of the House Committee on Financial Services, suggested that the current head of the regulator, Gary Gensler, should be fired.

Also after this news was the statement of the head of FRS Jerome Powell about the need to connect the Federal Reserve to regulate the stablecoin market. Which he called “a form of money” rather than securities.

Powell’s hints about the possibility of further rate hikes should also not be forgotten. Since the U.S. inflation target has not yet been reached. And rate changes could put pressure on the stock market, followed by the movements of cryptocurrencies.

To summarize the intermediate results, active market growth was realized amid unprecedented pressure from U.S. regulators on the crypto industry. The interest of large corporations in cryptocurrencies in the current market conditions looks suspicious.

Possible further growth

In order to expect further growth, for example, to the levels of $40 thousand and $45 thousand. It is necessary for the price to fix above the maximums of April in the nearest days.

Our experts expect further growth of BTC price this year. A lot of fundamental factors point to it. But it’s hard to say for sure whether the growth of recent days is the movement that will lead the price to further significant growth.

It is possible that the slight sideways dynamics, observed over the last couple of months, will continue on BTC for a while longer.

Our experts tell us what we need to know about the new EDX exchange for institutional investors with support from Fidelity and Charles Schwab

A new crypto exchange, EDX, started operating in the U.S. It is backed by such well-known players in the market of traditional finance as Citadel Securities, Fidelity and Charles Schwab. This development could change the digital asset landscape amid increased U.S. attention to the sector.

According to the press release, EDX was launched to “meet the needs of the world’s largest and most advanced financial institutions.” And many of which are still interested in cryptocurrencies. But they are skeptical of existing platforms, also because of the regulatory uncertainty they now find themselves in. The launch of the site coincided with a surge in Bitcoin. It was just after news of an application for a Bitcoin ETF by BlackRock.

The EDX Markets exchange for institutional investors only was first announced in September 2022. In addition to Bitcoin, the exchange allows trading in three other cryptocurrencies – Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). None of them were equated with securities in the sensational lawsuits from the SEC against major cryptocurrency exchanges Binance and Coinbase.

Unlike existing crypto platforms, EDX offers a so-called non-custodial model. And that means it won’t store customers’ digital assets during trading. Instead, EDX works with a third-party custodian. According to EDX Markets CEO Jamil Nazarali, the expectation of regulators. That crypto exchanges should be separated from broker-dealer functions, similar to the structure of traditional financial markets, will create opportunities for EDX.

Major Investors

The first capital to develop the exchange came from venture capital firms Paradigm, Sequoia Capital and Virtu Financial. By the time of launch, EDX had raised additional funding from new investors, including Miami International Holdings, GTS, GSR Markets and HRT Technology. At the end of the year, the company plans to launch its own EDX Clearing service for trades on the exchange.

The Sequoia portfolio also includes other major cryptoservices. The company has invested, for example, in projects such as Filecoiln and LayerZero. Paradigm focuses exclusively on the crypto market and has supported dozens of blockchain startups, including Uniswap, OpenSea, Synthetix, Starkware, Phantom, Optimism, dYdX, Blur and others.

The traditional market enters the cryptocurrency market

EDX customers will still be able to trade the four cryptocurrencies almost around the clock. But the site will share the functions of broker, dealer and exchange.

Many potential crypto investors are still interested in this area. But they are wary of the inherent volatility of the crypto market. Taking the example of the traditional stock market. And now EDX wants to attract these risk-averse customers. The exchange is aimed primarily at large investors. As well as those investors who are put off by the regulatory uncertainty and instability of the crypto industry.

Instead of retail investors trading cryptocurrencies directly through the EDX platform. And as is the case with other exchanges, they will interact with intermediaries. A similar approach is taken, for example, in stock trading on the New York Stock Exchange (NYSE). The reliability of such intermediaries is also an argument for potential clients.

“There’s no way someone trading through a reliable intermediary will lose a hard drive with $200 million worth of cryptocurrency keys and then spend years looking for it in a landfill,” says Jamila Nazarali, CEO of EDX Markets. And recalling that such cases did occur.

Our experts point out that the site will also provide clients with access to more favorable prices through transactions with special quotes for retail-only quotes. Because institutional traders often buy the asset in large quantities. Their transactions often lead to an increase in the price of such an asset, which leads to losses for market makers. To minimize this, the platforms can set inflated commissions. And which will be strongly felt for retail traders who trade in much smaller volumes. By isolating retail trading, EDX can offer clients better prices for small trades.

WisdomTree, Invesco and Bitwise followed BlackRock’s lead and applied for permission to launch a spot exchange-traded BTC product (ETF)

Three major investment companies applied for Bitcoin-ETF following BlackRock. Following it, WisdomTree, Invesco and Bitwise applied to the U.S. Securities and Exchange Commission (SEC) for permission to launch a spot exchange-traded product based on the first cryptocurrency.

Asset manager WisdomTree is trying for the third time to get permission to create a spot Bitcoin ETF in the U.S. On June 20, it applied to launch the new product on the Cboe BZX exchange under the ticker BTCW.

Another company, Invesco, which has $1.4 trillion in assets under management, also reapplied for a Bitcoin-based spot exchange-traded fund.

Bitwise, a cryptocurrency-focused asset management company, has applied for ETF approval from the SEC, taking its cue from BlackRock, according to Blockworks. It had already applied once before, in 2021, but the regulator rejected it in the summer of 2022.

In all, more than 30 attempts have been made by various companies to create a spot exchange-traded fund for Bitcoin. But all applications were rejected by regulators, who cited market problems and a lack of investor protection.

Despite the constant rejections, on June 15, iShares, a division of investment firm BlackRock. And which has about $9 trillion under management, filed paperwork to register the iShares Bitcoin Trust. This was the impetus for other major companies to once again try to launch Bitcoin exchange-traded products.

Our experts note that after WisdomTree, Invesco and Bitwise became known on the evening of June 20. BTC price began to rise.

Our expert analyzed the situation on the crypto market with BTC and told how it can change in the short term

On Sunday, Bitcoin was trading in plus (+2.38%), and the price reached $26,839. The beginning of last week was not easy for BTC due to worries about lawsuits against cryptocurrency exchanges Binance and Coinbase. However, after the release of U.S. inflation data in May, risk appetite increased in the markets. Investors were estimating a rate hike at the June 14 meeting with more than 90% probability, which was fully justified. The interest rates were left unchanged in the range of 5.00-5.25% per annum.

Despite the noticeable decline in BTC quotes. Which were caused by SEC lawsuits. As well as reduced liquidity in the market, Bitcoin began to strengthen on June 15 in the U.S. session. On Friday (June 16), the BTC/USDt pair rose 2.92% to $26,345. Active growth in stock indices and the collapse of the U.S. dollar at the beginning of the week also supported the growth of Bitcoin and altcoins. On Saturday (June 17), the rise in quotations continued to $26,839.

Technical analysis and conclusions

According to the technical analysis, the upward movement has a truncated formation with three tops. The correction after such a pattern reaches 62% of the growth. And that in this case is $25,600. However, at the beginning of the move, the truncated pattern could become a running correction in the direction of the move. And that could accelerate the rise. To break through the downtrend line and lock in a bullish signal. Then the buyers need to break through $27,500.

Important Events

Our experts note that in the U.S., June 19 is Juneteenth, which is a federal public holiday. Many major exchanges, such as the New York Stock Exchange and NASDAQ, work a reduced schedule on that day. And this could be an opportunity for buyers.

Two speeches are scheduled this week by J. Powell, head of the U.S. Federal Reserve. The FOMC officials will also make speeches. Their thoughts about continued high inflation and a new rate hike in the coming meetings may rock the markets and reduce risk appetite. It is unclear what the SEC’s head of exchanges will say.

Friday’s comments from two Fed officials dampened optimism that an aggressive interest rate hike is over. Fed Governor Christopher Waller said that core inflation is not declining as much as he expected. Richmond Federal Reserve President Thomas Barkin expressed satisfaction with further rate hikes. And that’s given that inflation has not yet reached the obvious level of a return to 2%.

In terms of voters, the spread is roughly as follows: two FOMC members think the current rate level (5.25%) is appropriate for the end of the rate hike cycle. And four officials see another 25 bps increase as appropriate. And the other 12 see at least two more raises of 25 bps.

Fed Chairman Jerome Powell said at a press conference Wednesday that no decision has been made on the upcoming Fed meeting in July. But many investors and analysts expect rate hikes to resume.

Thus, the situation in the cryptocurrency market remains uncertain. And price movements depend on many factors, including regulation, economic data. As well as news from the industry and price movements in the forex and stock market. Therefore, investors should continue to monitor the news and act with caution when making investment decisions.

BlackRock Investment Company decided to create a spot exchange product based on cryptocurrency. And this despite numerous refusals by the regulator to register such funds

iShares, a division of BlackRock Investment Company, filed documents with the U.S. Securities and Exchange Commission (SEC) to register the iShares Bitcoin Trust. The trust’s units, if approved, will trade on NASDAQ.

BlackRock is one of the largest investment firms in the world and the largest in terms of assets. And it manages about 1,000 funds with assets totaling more than $9 trillion (as of the end of March). The company also manages about $24.7 billion in reserve funds for Circle, the issuer of the second most capitalized USD Coin Stablecoin (USDC).

Bitcoin Trust and Spot Bitcoin ETFs are products that track the real price of Bitcoin. Their point is to give investors access to BTC through a regulated and familiar product. And without actually owning Bitcoin.

Futures-based exchange-traded funds differ from spot funds in that they offer investors access to futures contracts rather than to an asset.

When you buy units of a spot fund, unlike futures products, there is an actual purchase of Bitcoin in the market. If big players show interest in such a product, it may have an impact on the price of the asset.

The assets of iShares Bitcoin Trust consist mainly of Bitcoins. And the custodian of which will be Coinbase, the company said in a statement. The Bank of New York Mellon will hold the trust’s cash.

The trust could be the first Bitcoin-based spot exchange product in the U.S. According to Bloomberg, this is at least the 33rd attempt by issuers to create a spot product based on VTCs. Previously, all applications were rejected by regulators. And which cited, among other things, the problems of the crypto market and the lack of investor protection.

In January, the SEC rejected cryptocurrency exchange traded fund issuer 21Shares and Katie Wood’s investment firm ARK Investment Management for the second time to create a spot bitcoin ETF. In March, regulators rejected VanEck’s application for a spot bitcoin-ETF for the third time.

At the same time, exchange-traded funds (ETFs) based on Bitcoin futures were getting SEC approval. The first was the Bitcoin Strategy ETF from ProShares. And its shares became available to investors on the New York Stock Exchange in October 2021.

Our experts note that back in 2022, SEC head Gary Gensler explained. That applications for spot funds do not meet the standards of the Securities Act, so they are rejected by the commission.

The dominance of Bitcoin has increased as investors avoid investing in altcoins due to pressure from U.S. regulators

The Bitcoin stake in the cryptocurrency market has reached its highest point since October 2021. According to CoinGecko, Bitcoin Market Cap Dominance increased to 46% for the first time in 20 months. This suggests investors are being more cautious about other cryptocurrencies.

In early June, the U.S. Securities and Exchange Commission (SEC) named a number of cryptocurrencies as unregistered securities in lawsuits against crypto exchanges Binance and Coinbase. The decision led to a sell-off of these assets by market participants.

The SEC named several cryptocurrencies as securities in its lawsuits.

In the first case they were Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS) and COTI (COTI).

In the second lawsuit Chiliz (CHZ), Flow (FLOW), Internet Computer (ICP), NEAR Protocol (NEAR), Voyager VGX (VGX), Dash (DASH) and NEXO (NEXO) were added to them.

BTC is treated as a commodity by U.S. regulators. And that has helped it not drop in value as much as the altcoins that have been labeled as securities have.

Our experts note that BTC rate fluctuates around the mark of $25,000+ , the first cryptocurrency lost 5.7% in price last week. Altcoins fell in price more: Solana fell in price by 22.9% in 7 days, Polygon – by 23.3%, Cardano – by 20.9%.

However, the price of Bitcoin a few days ago fell below $25,000

Bitcoin price on June 14 fell below $25 thousand and updated the minimum for 3 months. BTC within an hour fell by $1 thousand – from $25.87 thousand to $24.87 thousand. The last time the first cryptocurrency was traded at this level on March 16.

The Fear & Greed Index also fell from 46 to 41 out of 100, moving deeper into the fear zone. This index also updated to a three-month low. And the last time it was below 41 on March 12 (33 points).

Crypto Upvotes experts told about what will affect the price of Bitcoin. And to what levels its price may rise or fall

On June 13, Bitcoin price is fluctuating around the mark of $25.8 thousand. On the weekend of June 10-11, the price of the asset fell to $25.5 thousand. As well as many altcoins from the top 100 cryptocurrencies lost 20-25% in price. At the beginning of the week, rates rose slightly and BTC recovered to around $26k.

After it became known today that the growth of inflation in the US slowed down from 4.9% to 4% year-on-year in May (better than the forecast of 4.1%). Then immediately the rate of Bitcoin rose to $26.35 thousand, but then fell back to $26 thousand.

Recovery from collapse

Bitcoin hit the $26.2K mark, even though it was trading at $25,500 on the weekend. Last week, its price was down 7.5%. This was affected by the fall of BTC/USDT pair on June 5 (down to $25,700 from intraday low of $25,300) and charges of illegal operation, filed against Binance by Securities and Exchange Commission (SEC).

The lawsuit against Coinbase for allegedly violating securities trading rules did not add to the positivity either. We see a targeted campaign by the U.S. administration against crypto-exchanges. And recently, similar accusations were made against Bittrex and Kraken exchanges.

That said, the U.S.-based Bittrex began bankruptcy proceedings on May 8 following an April 17 SEC lawsuit. Kraken, meanwhile, continues to operate. But in February it agreed to pay $30 million in fines and refused to provide stacking services.

The tokens that fell the hardest over the weekend were the tokens that the regulator recognized as securities – BNB (BNB), Cardano (ADA) and Solana (SOL). Bitcoin was also affected. Its high last week was $27,39 thousand, which was followed by a decrease in price.

While investors continue to “speculate” on new crypto industry news. The major cryptocurrency is starting to recover. Our experts believe that already tomorrow we will see a rate of $26.4 thousand, and by the end of the week it will approach $27.2 thousand.

Support and resistance levels of BTC

The first target this week is to get back to the closing level of Friday, June 9, on the CME (Chicago Mercantile Exchange Group). It was $26.47 th.

Then, up to $27K, there is dense, saturated resistance. It will be very difficult to overcome this level.

Support lines of BTC at the moment are at the levels of $25.2 ths and $24.4 ths.

This week the market is expecting more volatility on June 14. On that day, the U.S. Federal Open Market Committee (FOMC) will meet and the U.S. interest rate decision will be released.

Negative and positive scenarios

SEC lawsuits and the recognition of a number of altcoins as securities may cause crypto investors to choose to withdraw assets from altcoins and move them into Bitcoin. But for now, the overall situation is in the hands of the bears. And Bitcoin is unlikely to rise in the coming week.

It is unlikely that the price of BTC will fall below $24k, but it won’t be able to grow above $28k either. In other words, in the next 7 days the price of the asset will fluctuate in this range.

The negative scenario is that a criminal prosecution of Binance, which was warned about by former SEC lawyer John Reed Stark, could be launched. That would bring Bitcoin down to $20,000 – the level of the regional average cost of mining it.

The positive scenario is that the situation will quiet down for a few months. And there will be no criminal prosecution in the coming weeks. In that case, Bitcoin will be able to strengthen its position and return to the $28,000 mark. And maybe even test $30k. But so far, such a possibility is seen at best in the perspective of three to four weeks.

Tether has invested in building a Bitcoin mining platform in El Salvador

Tether has participated in the first round of $1 billion in financing to build a Bitcoin farm in El Salvador. The company announced that it would provide capital and “bring its expertise in energy, equipment and communications”. Especially for the construction of Volcano Energy, a 241MW renewable energy generation park, the world’s largest site.

The site selected for construction will house photovoltaic cells to generate 169MW of solar power. And wind power generation equipment for 72 MW. This will enable the placement of mining equipment with computing power in excess of 1.3 EH/s, it said.

The total global hash rate on the bitcoin network on June 5 hovered around 361 EH/s, according to Minerstat.

The Tether says that by investing in green energy around the world. With this, it aims to become one of the leading providers and investors in the global renewable energy and mining infrastructure.

Our experts note that the company previously reported net income of $1.5 billion for the first quarter of the year, and announced its decision to spend up to 15% of realized operating profits on Bitcoin purchases.

At the end of May, Tether also announced that it was investing in renewable energy generation and the launch of bitcoin mining in Uruguay using that energy.

The farm in El Salvador, Tether claims, will be the largest in the world. In early May, one of the largest US miners, Marathon Digital, and developer Zero Two announced the creation of two Bitcoin mining platforms in Abu Dhabi, UAE, under equipment with a total capacity of 250 MW

Several events are taking place this month that could affect both the value of individual cryptocurrencies and the cryptocurrency market as a whole

Optimism (OP) – Main Network Update

The Optimism main network, called Bedrock, is scheduled to be updated on 6 June 2023. During the update, the blockchain will be suspended for approximately 2-4 hours. During this time, users will not be able to make transactions and other interactions with the blockchain.

Also operators of validation nodes need to update their software to the current version to work with Bedrock. This Bedrock update aims to improve network security and resilience. And it is also expected to reduce commission costs by 47% after the Bedrock update.

IDO of Neon Protocol project on Coinlist

The IDO of the Neon Protocol project will take place on 8 June on the Coinlist platform. Neon Protocol is Ethereum’s first virtual machine (EVM) on the Solana blockchain. This protocol will allow developers to create decentralised applications (dApps) that are compatible with the Ethereum network. And in doing so, gain access to fast and low-cost transactions on the Solana network.

Also here, a total of 50 million NEON tokens (5% of the total supply) will be offered for sale at $0.10 per token. Both the minimum and maximum redemption amounts are $100 and $500, respectively. Additionally, users are scheduled to receive 100% of the NEON tokens purchased during the IDO on July 17 this year. Registration for this event closed on 5 June.

Vega Protocol (VEGA) – Reducing the reward for staking

The developers of the Vega Protocol project have announced that starting on 12 June, the fees for staking VEGA tokens are to be reduced. This will reduce inflation by reducing token issuance.

Also Vega Protocol is a decentralised blockchain-based trading platform. It allows users to create their own assets and act as both market maker and trader. The project’s IDO took place on Coinlist in early June 2021.

One of this month’s big events is IDO of Archway project on the Coinlists

IDO Archway will take place on 15 June. The Archway project is a Tier 1 blockchain. It uses the Proof-of-Stake (PoS) consensus algorithm and is powered by the Cosmos SDK. It also aims to provide developers with a user-friendly platform. Which rewards them for creating decentralized universal (cross-chain) decentralized applications (dApps).

And a total of 30 million ARCH tokens (3% of the total offer) will be offered for sale at $0.20 per token. Also the minimum and maximum amounts for redemption are $100 and $1000 respectively. It is planned that users will receive 25% of the redeemed tokens after 40 days of locked up. And the remaining tokens will be distributed evenly over the next 8 months. Registration for IDO Archway will close on 12 June. In our opinion, this is one of the important events of this month

Unlocking Blur tokens (BLUR)

NFT-marketplace Blur will unlock 195.99 of its own $101.8m worth of BLUR control tokens on 15 June. Therefore, more than 6.5 % of the total supply of tokens will additionally enter the market.

One of the most awaited events: Recognition of Bitcoin as official payment instrument in Brazil

On 21 December 2022, President Jair Bolsonaro signed a law into law. And in which it enshrines BTC as a means of payment and an investment asset. This law will enter into force 180 days after the signing, on 16 June 2023.

Also, the Bank of Brazil will be responsible for and oversee the use of Bitcoin as a means of payment. And the Securities and Exchange Commission (SEC) will be responsible for overseeing the use as an investment asset.

Optimism (OP) tokens unlocked

Our experts note that the Optimism project will unlock 195.99 of OP own management tokens worth about $35 million. Also, this would amount to 0.56% of the existing tokens. And some of it will go to developers and some to investors.