Categories: Crypto Review

Bitcoin needs to cool off for now after proving its ability to grow 

Market picture

The total capitalisation of the crypto market rose 10.8% over the week to $1.184 trillion, according to CoinMarketCap. Bitcoin rose 15% over the week to close at $30.4K. Ethereum gained 9.5% to $1890. Other leading altcoins in the top 10 showed mixed dynamics, ranging from a 2.8% decline (BNB) to an 11.1% gain (Cardano). 

Bitcoin renewed its early June highs near $31.4K on Friday, but the rally was not sustained, and over the weekend, the recent momentum was dissipated, bringing the price back down to $30.3K in early Monday trading. The BTC rally is often attributed to hopes of launching spot bitcoin ETFs, which ease access of institutional capital to the flagship cryptocurrency. 

Besides, the technical factors have also supported the crypto’s recent march to the North. BTCUSD broke through the 50-day moving average resistance and consolidated above the upper boundary of the descending channel. A bounce off the 200-week MA was an even more critical bullish signal. 

Strictly speaking, we saw a bounce and a rapid rise from the lower boundary of the longer-term bullish corridor formed by the November 2022 and March 2023 lows. In the short term, bitcoin will need to cool off after the march, but overall, it has a much better chance of touching the upper boundary at $34.5K within a month than the lower boundary at $26.1K. Despite the bullish outlook, the market needs to cool down in the coming days. 

News background

Mark Yusko, a founder of Morgan Creek Capital, believes the recent rise in Bitcoin and other cryptocurrencies is a sign of the start of a new bullish cycle that will last until next spring’s halving. In his view, BTC will eventually replace gold as a store of value. 

Bitwise CEO Matt Haugan said the crypto market is beginning a multi-year bull cycle as institutional investors start to invest in digital assets. 

Hugh Hendry, a founder of hedge fund Eclectica Asset Management, said that rising interest rates in major economies would lead to a deterioration in macroeconomic conditions, which is good for Bitcoin. He believes the BTC exchange rate could triple against such a backdrop. 

Major German software developer SAP has launched a pilot project for international payments using the Circle USDC and EUROC stablecoins on the Ethereum blockchain. 

One of the oldest altcoins, Bitcoin Cash, rose 80% last week as crypto exchange EDX Markets backed BCH.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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