Last week in the news
Financial markets ended the second quarter with extended losses, pricing high inflation, fears of recession and monetary moves. So called “crypto winter” is still holding. Bitcoin is finishing the week testing $20K support, while Ether is still holding modestly above $1K.
Implications of crypto market losses since the beginning of this year are starting to reveal in the crypto industry. Layoffs have been only the beginning. During the previous week a Singapore based crypto hedge fund Three Arrows initiated a bankruptcy procedure as the company filed for Chapter 15 of the U.S. Bankruptcy Code. On the other hand, a crypto trading and lending firm Genesis Trading is expecting several millions of potential losses due to their exposures to Three Arrows, as per people involved in a matter commented.
A crypto brokerage firm Voyager Digital issued a statement on Friday noting that it is suspending trading on its platform, including deposits and withdrawals of funds. As it has been noted, this suspension is only temporary, but for how long suspension will last has not been noted. According to Sam Bankman-Fried, founder of crypto exchange FTX, there are a number of cryptocurrency exchanges which are already out of cash, hence, news regarding insolvency of exchanges will continue in the future.
Announced data on the inflation in the Euro zone for June, revealed continued inflator pressures as it hit a new high at 8.6% in June. This is a certain signal that the ECB will increase interest rates at their July meeting, for the first time in the last 11 years. As it has been announced from the ECB, a new rate hike is possible in September this year.
Meta has disregarded its Libra project after several years of struggle, hence, its digital wallet Novi will be shut down. Meta revealed its plans in a message to its customers, urging them to withdraw funds from the platform.
The U.S. Securities and Exchange Commission refused to issue approval to the Grayscale Bitcoin Trust for its ETF based in Bitcoin. Immediately after the rejection, the Grayscale Trust filed a lawsuit against the SEC in the hope that it might reverse their decision.
Crypto market cap
Total crypto market capitalization ended the second quarter of this year down by 61% from the beginning of the year. Concerns regarding potential recession in developed economies are still high among investors, in which sense; nobody is asking a question where the current bearish market bottom line is. Markets are waiting for a signal that inflation has peaked in order to make a move from the current investment vacuum. Until then, some further price corrections to the downside might be possible. Last week`s drop in crypto market cap was led by major coins, Bitcoin and Ether, which lost the most in nominal figures among all other coins. Total market cap dropped by additional 8% in a single week, where $73B in value has been erased. Daily trading volumes were relatively flat, but still decreased from usual volumes on the crypto market, moving around $106B on a daily basis. Total outflow of funds from the beginning of this year was increased to the level of $1.335B.
Bitcoin and Ether were coins which were leading drop in the crypto market cap during the previous week. In nominal values, Bitcoin lost $35B or 8% of its market cap, followed by Ether, with a weekly decrease of $17B or 11%. Major altcoins followed the same path. Binance Coin`s market cap was down by almost $3B or 7%. XRP dropped by $2B, which is a decrease of 13% in market cap for this coin. Tether continues to decrease its coins in circulation, dropping total market cap by an additional 1%. Regardless of decrease in price, Filecoin managed to keep its market cap flat due to an increase of circulating coins by 1.4%.
Crypto futures market
Crypto futures were following general market sentiment for crypto currencies. Futures with shorter maturities were down by 8% for BTC and by 13% for ETH futures. However, major developments were with futures prices for the end of this and next year. BTC futures maturing in December this year dropped by 9%, ending the week below $20K. ETH futures for the same period were down by almost 17%. Current market expectations for ETH price as of the end of this year as well as for the end of the year 2023 are still holding modestly above $1K, with very small price difference, pointing to current market uncertainty over the future price levels of this coin.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
Financial markets ended the second quarter with extended losses, pricing high inflation, fears of recession and monetary moves. So called “crypto winter” is still holding. Bitcoin is finishing the week testing $20K support, while Ether is still holding modestly above $1K.
Implications of crypto market losses since the beginning of this year are starting to reveal in the crypto industry. Layoffs have been only the beginning. During the previous week a Singapore based crypto hedge fund Three Arrows initiated a bankruptcy procedure as the company filed for Chapter 15 of the U.S. Bankruptcy Code. On the other hand, a crypto trading and lending firm Genesis Trading is expecting several millions of potential losses due to their exposures to Three Arrows, as per people involved in a matter commented.
A crypto brokerage firm Voyager Digital issued a statement on Friday noting that it is suspending trading on its platform, including deposits and withdrawals of funds. As it has been noted, this suspension is only temporary, but for how long suspension will last has not been noted. According to Sam Bankman-Fried, founder of crypto exchange FTX, there are a number of cryptocurrency exchanges which are already out of cash, hence, news regarding insolvency of exchanges will continue in the future.
Announced data on the inflation in the Euro zone for June, revealed continued inflator pressures as it hit a new high at 8.6% in June. This is a certain signal that the ECB will increase interest rates at their July meeting, for the first time in the last 11 years. As it has been announced from the ECB, a new rate hike is possible in September this year.
Meta has disregarded its Libra project after several years of struggle, hence, its digital wallet Novi will be shut down. Meta revealed its plans in a message to its customers, urging them to withdraw funds from the platform.
The U.S. Securities and Exchange Commission refused to issue approval to the Grayscale Bitcoin Trust for its ETF based in Bitcoin. Immediately after the rejection, the Grayscale Trust filed a lawsuit against the SEC in the hope that it might reverse their decision.
Crypto market cap
Total crypto market capitalization ended the second quarter of this year down by 61% from the beginning of the year. Concerns regarding potential recession in developed economies are still high among investors, in which sense; nobody is asking a question where the current bearish market bottom line is. Markets are waiting for a signal that inflation has peaked in order to make a move from the current investment vacuum. Until then, some further price corrections to the downside might be possible. Last week`s drop in crypto market cap was led by major coins, Bitcoin and Ether, which lost the most in nominal figures among all other coins. Total market cap dropped by additional 8% in a single week, where $73B in value has been erased. Daily trading volumes were relatively flat, but still decreased from usual volumes on the crypto market, moving around $106B on a daily basis. Total outflow of funds from the beginning of this year was increased to the level of $1.335B.
Bitcoin and Ether were coins which were leading drop in the crypto market cap during the previous week. In nominal values, Bitcoin lost $35B or 8% of its market cap, followed by Ether, with a weekly decrease of $17B or 11%. Major altcoins followed the same path. Binance Coin`s market cap was down by almost $3B or 7%. XRP dropped by $2B, which is a decrease of 13% in market cap for this coin. Tether continues to decrease its coins in circulation, dropping total market cap by an additional 1%. Regardless of decrease in price, Filecoin managed to keep its market cap flat due to an increase of circulating coins by 1.4%.
Crypto futures market
Crypto futures were following general market sentiment for crypto currencies. Futures with shorter maturities were down by 8% for BTC and by 13% for ETH futures. However, major developments were with futures prices for the end of this and next year. BTC futures maturing in December this year dropped by 9%, ending the week below $20K. ETH futures for the same period were down by almost 17%. Current market expectations for ETH price as of the end of this year as well as for the end of the year 2023 are still holding modestly above $1K, with very small price difference, pointing to current market uncertainty over the future price levels of this coin.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
