Crypto markets showed a slight dip as May’s gray skies seemed to continue in June, with Bitcoin recently trading at around $26,950, marking a 0.5% decrease over the past 24 hours. This decline carried over from May when Bitcoin’s price dropped nearly 4%, breaking its four-month streak of gains. Despite this, Todd Groth from CoinDesk remains optimistic, stating that markets had priced in a resumption of a more hawkish monetary policy following early May’s encouraging signs of waning inflation.
There’s no doubt that cryptocurrencies have a relatively high volatility, but Groth points out that “any real monthly move that is under a safe flat fee of 5% is relatively muted.” The CoinDesk Market Index dropped by 0.4% recently, signaling a somewhat choppy performance in the market.
On the other hand, Ether, the second largest cryptocurrency by market value, traded slightly above $1,870. Other major digital assets were mostly down, but not by much, with litecoin being an exception as it recently experienced a more than 7% increase. This uptick was fueled by the upcoming network halving in two months and a spike in activity in May.
The differences in performance between cryptocurrencies demonstrate the diverse landscape of the market. For example, LTC and RNDR, the token of the decentralized graphic processing units-based rendering solutions provider, Render Network, ranked as CoinDesk Indexes’ biggest gainers for May. Both LTC and RNDR rose roughly 20% and 7.5% over the past 30 days, respectively.
With a growing embrace of digital assets in Asia, particularly in Hong Kong, combined with the resolution of the debt ceiling crisis in the United States, Leo Mizuhara, CEO of institutional crypto management platform Hashnote, believes that crypto markets have “dodged a bullet.” However, he doesn’t expect a significant breakout for Bitcoin in the near future, comparing the current state of the market to 2019 when investors were recovering from an extended bear market.
Mizuhara posits that we are presently in a “builder’s market” with numerous protocols and companies being launched, and venture funding slowly returning. This build-up phase, he suggests, is setting the foundations for the next bull cycle. The diverse range of global events shaping the industry makes it hard not to feel optimistic about the future of cryptocurrencies.
While crypto markets face challenges and varying performances, investors are advised to keep an eye on the broader landscape as various factors set the stage for potential growth in the sector. As news and events continue to unfold, it’s crucial to remain informed and engaged with the market’s developments.