Cryptocurrency Market Update and Insights

Introduction

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Latest Prices and Market Analysis

Bitcoin’s recovery efforts after dipping below $59,000 on Monday hit a roadblock as it struggled to maintain momentum above the $61,000 mark. The broader crypto market, indicated by the CoinDesk 20 (CD20) Index, also experienced subdued trading activity during the European trading hours. This pause coincides with the dollar index (DXY) surpassing 106, reaching its highest level since May 2. This development has kept investor risk appetite in check, especially with key U.S. economic data releases on the horizon, including the first-quarter GDP figures, May’s durable goods data, and the weekly jobless report scheduled for 12:30 UTC (08:30 EST).

Bannockburn Global Forex’s Managing Director and Chief Market Strategist, Marc Chandler, highlighted the market’s sensitivity to the weekly jobless claims, particularly in light of recent increases and indications from San Francisco Fed President Daly that the labor market may be at a turning point. Crypto traders are eagerly anticipating the Biden-Trump presidential debate scheduled for 21:00 EST, as it may provide insights into how the upcoming election outcome could impact the industry.

Insights and Predictions

Industry experts are increasingly of the opinion that the demand for U.S.-based spot Ethereum ETFs may not match that of Bitcoin ETFs once approved. Galaxy Research projected that these ETFs could see around $1 billion in net inflows per month post-approval. However, the firm cautioned that the net inflows into Ethereum ETFs may range from 20-50% of Bitcoin ETF inflows over the initial five months, with a target of 30%. The lack of staking rewards and potential outflows from the Grayscale Ethereum Trust (ETHE) could limit demand. The SEC is expected to make a decision on the funds as early as July 4, according to a recent Reuters report. Options traders are foreseeing a resurgence in bullish momentum for Ethereum following the approval.

Company News

Marathon Digital (MARA) has diversified its revenue streams by transitioning into a multicoin mining operation due to the impact of the recent Bitcoin halving, which halved profits and intensified industry competition. Since September 2023, the company has mined approximately 93 million kaspa (KAS) tokens, valued at around $15 million. Marathon has already deployed 30 petahash worth of mining machines for KAS tokens, with plans to activate an additional 30 by the third quarter. Adam Swick, Marathon’s Chief Growth Officer, emphasized that mining Kaspa allows the company to generate diversified revenue streams beyond Bitcoin, aligning with its expertise in digital asset computation.

Chart of the Day

– Omkar Godbole