Good morning to all crypto enthusiasts! As Asia’s trading day kicks off with a slight increase in Bitcoin and a minor dip in Ether, experts are predicting a pre-FOMC market correction. This highlights digital assets’ resilience amid regulatory challenges and the ongoing US debt dilemma.
A decline in the bitcoin options put/call ratio indicates that crypto investors are currently less concerned than they were in June when US lawmakers clashed over raising the country’s debt ceiling. As of now, Bitcoin is experiencing a 0.1% increase, trading at $27,109, while Ether has dropped to $1,890.
BitBull Capital’s Joe DiPasquale believes that the theme this week will be correction and consolidation in preparation for the release of the next FOMC meeting minutes on June 14. He stated that expectations of a correction and consolidation between $25K and $27K levels have been met over the last month, and another attempt at the key resistance level of $30K would not be surprising.
Mark Connors, the head of research for digital asset manager 3iQ, points out the impressive performance of the digital asset market, contrasting it with the hostile regulatory environment in the US. Connors credits the market’s success to concerns about unprecedented U.S. debt issuance.
He suggests that digital assets are taking matters into their own hands, despite the focus on Bitcoin’s dominance and surging fees in 2023. Ethereum’s post-merge performance has captured market attention with over 250k ETH burned, increased staking demand, and a realized deflationary promise.
Connors concludes that while the central banks and treasury departments tackle the $500 trillion equity and debt markets’ fate, bitcoin and ether continue to hold their own. The market is responding accordingly, even if institutions and regulators are lagging behind.
The put/call ratio’s recent drop signifies that fewer traders are seeking downside protection against future price declines, with the previous month’s spike possibly attributed to concerns regarding the recent debt deal agreed upon by Democrats and Republicans.
In other news, lesser-known altcoins had a strong week as bitcoin and ether grappled with macroeconomic headwinds. Meanwhile, Marathon Digital mined 77% more Bitcoin in May, thanks to its software’s higher efficiency.
Sotheby’s is set to sell Dmitri Cherniak’s landmark NFT at a live auction this month, while Mercedes-Benz introduces the ‘Maschine’ and collaborates with EA Sports and Nike. Lastly, Credit Suisse and Deutsche Bank-backed Taurus deployed on the Polygon Blockchain, allowing financial institutions and corporates to issue tokenized assets on the Ethereum layer 2 network.
Overall, the crypto market demonstrates tremendous resilience in the face of regulatory and macroeconomic challenges. As crypto enthusiasts, we keep a watchful eye on these developments and eagerly anticipate the future of digital assets.