![]() Given Bitcoin's previous correlation with the equity markets, one might expect to see the same price move in BTC. As of article submission, that month to date rallies in both the S&P and the Nasdaq are approaching 5%. With the prospect of no hike, the equity markets have been rallying for most of June. ![]() Following the release of May CPI on June 13th, the target rate probability for "unchanged" at the June 14th Fed meeting jumped to over 94%: ![]() There has been a lot of anticipation for the Federal Reserve's June rate hike decision both from crypto market participants and from the broader financial markets. But there are potential macro catalysts that could push BTC higher even as other coins move lower given the regulatory environment. To be clear, dominance doesn't mean BTC's price can't go down. SEC Chair Gary Gensler has insinuated in the past that BTC is the only coin in the crypto market that isn't an unregistered security. I suspect that this resurgence in broad dominance can continue given the regulatory environment for the rest of the crypto market. At that time, the price of BTC was closer to $1,000 per coin. This is also a 2 year high Proof of Work coin dominance figure and not far from a six year high of 96.4% from February 2017. There we see Bitcoin at a 95.7% dominance figure. In my view, it gets even more impressive when we look at Bitcoin's dominance against just the other proof of work coins in the market like Litecoin ( LTC-USD), Bitcoin Cash ( BCH-USD), and ZCash ( ZEC-USD): On its own, Bitcoin's resiliency against other coins in the crypto market this year is notable. The chart below shows Bitcoin's dominance against the full crypto market and includes the top stablecoins like Tether ( USDT-USD ) and USD Coin ( USDC-USD ): With the SEC wielding its sword in the altcoin market, Bitcoin ( BTC-USD ) dominance is at a two year high of 48%. Since those designations, the performance of those coins has been abysmal with some of them declining by as much as 20% in just a 15 minute period in early morning trading on June 10th. In the SEC's lawsuits against Binance and Coinbase, the agency has added language that claims top altcoins like Cardano ( ADA-USD), Solana ( SOL-USD), and Polygon ( MATIC-USD) are all unregistered securities. Much of that pressure is in reaction to accusations by the SEC that several major cryptocurrencies are unregistered securities. With the backdrop of a US Securities and Exchange Commission that has been dropping bombs throughout the cryptocurrency industry via lawsuits with Binance ( BNB-USD) and Coinbase ( COIN), the altcoin market has dealt with a substantial amount of selling pressure in the month of June.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |