The DFi Labs Wrap
CRYPTO ASSET MARKET PERFORMANCES Major Cryptocurrencies prices continue to be in the red on June 21. The global cryptocurrency market cap is $1.38 trillion, a 6.82% percent decrease over the last day. BTC/USD Bitcoin’s price is currently at $33,276.60 and its dominance is currently 44.89…
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CRYPTO ASSET MARKET PERFORMANCES
Major Cryptocurrencies prices continue to be in the red on June 21. The global cryptocurrency market cap is $1.38 trillion, a 6.82% percent decrease over the last day.
BTC/USD
Bitcoin’s price is currently at $33,276.60 and its dominance is currently 44.89 percent, down 6.84 percent over the day. Bitcoin has fallen sharply since midday on Sunday after consolidating above the $35,000 support level that had held since Friday.
Bitcoin, the world’s largest and best-known cryptocurrency, has fallen 45.4 % from its annual high of $64,895.22 on 14 April. Volume has been trending lower over the past month, suggesting that buyers have either already “bought the dip” or are on the sidelines waiting for lower prices.
The death cross :
The drop in the leadingcryptocurrency by both market cap and volume comes as traders in the crypto market feared the likelihood of the “death cross” over the weekend. The death cross is a technical chart pattern that indicates the potential for a major sell-off. This pattern appears on a chart when the short-term moving average of a stock, or in this case Bitcoin (50DMA), crosses below the long-term moving average (200-DMA). Previous death crosses led to further price declines of 70% in 2018 and 47% in 2019. The 2020 death cross occurred shortly after the March market crash caused by the coronavirus pandemic, which proved to be a lagging signal at the time.
The bitcoin death cross formed on 19 June 2021, and based on past trends, if the death cross is followed by a golden cross within 3 months, this could lead to a massive price spike. In addition, price lows following the death cross have proven to be profitable entry points in the past. So in the event that the market hits a low after the death cross, it might be worth buying the price dip. However, if investors remain sceptical, it is advisable to hold your BTC until the market recovers.
Chinese mine closures :
Bitcoin fell over the weekend amid a focus on Chinese mine closures and possible regulatory investigations. Cryptomining is big business in China, accounting for more than half of global bitcoin production. Bitcoin’s total hash rate (TH / s) has hit its lowest level in six months as China persists in its crackdown on BTC mining operations in the country. The estimated number of tera hashes per second made by the Bitcoin network in the last twenty-four hours has reached 127.65 million. This is a significant drop from the peak of 180.66 million reached on 14 May.
Despite the negative news in the BTC space regarding China continuing to crack down on miners and thus having a real impact on the global network hashrate, it’s great to see Portugal granting the first crypto exchanges operating licenses, meaning a piece of regulation made specifically for crypto exchanges instead of general payment/banking services.
Along with this development, it was interesting to see two banks (BBVA and Goldman Sachs) move forward with ramping up their Bitcoin trading activities and trading facilities offered to clients.
Finally, it should be noted that other cryptocurrencies are also showing a sharp drop this Sunday.
ETH/USD
Ethereum loses more than 7% and threatens to fall below $2,000 again. Ethereum price
has extended its losses ahead of the $1.5 billion options expiry on 25 June. It is worth noting that the second quarter expiry is about 33% higher than the 26 March expiry.
Ethereum erased its weekly gains by falling above last Friday’s intraday low of 2,258.46. On Tuesday, it hit its one week high at 2,642.86. Since then, it has been in a downtrend in response to the Fed’s hawkish surprise. On the four-hour chart, it is trading below the 25- and 50-day exponential moving averages with an RSI of 29.
Ethereum Hard Fork "London" :
June was a big month for Ethereum, with three new testnets launched last month. A final one is due on 26 June. An important penultimate step towards a full mainnet rollout. These testnet releases come ahead of the London hardfork. As the testnets for the London hardfork are released, the network can be seen progressing towards Eth2’s goals of creating a scalable, secure and sustainable ecosystem.
Deposit Contract of ETH 2.0 Reaches 5.6 Million Ethereum :
Ethereum 2.0, a much-awaited network upgrade of Ethereum (ETH), now has more than 5.6 million coins under its deposit contract, which is the highest level on record. According to the latest data posted by Etherscan, the total value of ETH locked under the staking contract of Ethereum 2.0 stands at around $13.5 billion.
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