BTC’s Recovery Halts as Dollar Surges: First Mover Americas
The cryptocurrency market saw Bitcoin’s recovery from a dip below $59,000 falter as it struggled to maintain momentum above $61,000. Ether and the broader crypto market, as indicated by the CoinDesk 20 (CD20) Index, also experienced subdued trading activity during European hours. This stagnation coincided with the dollar index (DXY) reaching 106, its highest level since May 2, which tempered investor risk appetite ahead of key economic data releases. Market participants are closely monitoring U.S. first-quarter GDP figures, durable goods data for May, and the weekly jobless report scheduled for 12:30 UTC (08:30 EST) for potential market impact.
According to Marc Chandler, the managing director and chief market strategist at Bannockburn Global Forex, the labor market’s trajectory, especially in light of recent developments, notably the weekly jobless claims, is of particular interest to crypto traders. Additionally, the upcoming Biden-Trump presidential debate scheduled for 21:00 EST is anticipated to provide insights into how the November election outcome could influence the crypto industry.
There is a growing consensus that the demand for U.S.-based spot ether exchange-traded funds (ETFs) may not match that of bitcoin ETFs once they are approved. Galaxy Research projected that these ETFs, upon approval, could attract around $1 billion in net inflows monthly, with expectations that the inflows into ETH ETFs would be 20-50% of those into BTC ETFs over the initial five months. The analysis cautioned that demand might be constrained due to the absence of staking rewards, aligning with similar observations from Bernstein and JPMorgan. The approval of these funds by the SEC could potentially happen as early as July 4, as reported by Reuters.
Marathon Digital, a Bitcoin miner, has diversified its revenue stream by venturing into multicoin mining to counter the reduced profits resulting from the recent Bitcoin halving. The company has mined approximately 93 million kaspa (KAS) tokens since September 2023, valued at around $15 million. By expanding its mining operations to include Kaspa, Marathon aims to generate revenue distinct from Bitcoin, leveraging its expertise in digital asset computation.
The chart of the day illustrates recent activity in ether December expiry options across various strike price levels. The concentration of volumes in higher strike call options suggests a bullish sentiment, possibly influenced by the improving regulatory environment around ETH. Kaiko highlighted the SEC dropping its case against Consensys regarding ETH’s security status as a contributing factor to this positive outlook.
In conclusion, the cryptocurrency market remains dynamic and responsive to various economic and regulatory factors, with market participants closely monitoring key developments to gauge the industry’s future trajectory.
