Overview
- Federal Reserve’s bitcoin omelet
- Weekly digital asset flows
- Correction incoming?
- SEC investigating Binance’s BNB?!
Federal Reserve’s bitcoin omelet.
In one of the weirdest stories of the year, brought to light by Nick Neuman, the Federal Reserve recently added – and this is true – eggs/bitcoin and eggs/USD charts onto its FRED economic research website to showcase the volatility of digital assets…
Eggs/BTC long-term (disappearing cost of eggs vs BTC)
Eggs/USD long-term (Increasing cost of eggs vs US dollar)
If THAT isn’t an impressive, if not accidental, pro-Bitcoin announcement, I don’t know what is.
Let’s see how long these charts remain online!
Weekly Digital Asset Flow
The Crypto Asset Flow weekly report helps identify institutional interest in crypto assets. Institutions saw a significant increase of institutional interest with US$99m worth of combined net inflows this week. Bitcoin alone saw a total inflow of US$125m while Ethereum saw an outflow of $-32m. Ethereum has seen a total of US$- 357m outflow year to date with bitcoin seeing $506m inflows, showcasing the institution’s interest in bitcoin over Ethereum. The key takeaway is that institutions continue to accumulate bitcoin during the bear market.
Source: Medium
Market update 🌍
The overall crypto market had a nice uptick during the European trading hours only to be sold off after the US stock market session. Bitcoin (BTC) reached a high of 31.7k but failed to make a new high and looks to retrace with RSI indicators reaching the overbought zone in the 1-day and 4-hour charts.
The 4-hour chart shows BTC entering into a triangle pattern that long investors would like to see eventually break upwards.
Source: Trading View
Bitcoin dominance (BTC.D), bitcoin’s overall market cap versus the entire crypto market in percentage continues to soar. The preface of BTC over altcoins relates to the current risk appetite in the market but BTC.D is nearing a past resistance point near the 47.6% level that could be a turning point of the current trend.
Source: Trading View
Key Stock Market Events:
- USD Balance of Trade 8:30 am EST
Monday’s close:
| US markets close | Gain |
| S&P 500 | +0.31% |
| Nasdaq | +0.03% |
| Dow | _0.06% |
| VIX | +1.05% |
Notable Gainers:
| Protocol (Coin) | Price ($) | Gain (%) |
| Gala (GALA) | 0.08 | +17 |
| Helium (HNT) | 10.50 | +14 |
| eCash (XEC) | 0.000053 | +10 |
| Solana (SOL) | 42.52 | +10 |
| ThorChain (RUNE) | 3.10 | +10 |
| Optimism (OP) | 1.33 | +12 |
| Ethereum Name Ser. (ENS) | 12.10 | +10 |
| Solana (SOL) | 57.85 | +11 |
| WeWay (WWY) | 0.04 | +25 |
| Bitcoin Fear and Greed Index | 15 Extreme Fear |
| “Crypto” Google Trends 90d | 20 |
| “Bitcoin” Google Trends 90d | 30 |
Newswatch 📰
SEC investigates Binance. The Securities and Exchange Commission (SEC) has launched an investigation into the initial sale of the BNB token by Binance according to Bloomberg.. The SEC looks to investigate whether the token was a security during the sale in 2017 through its US exchange Binance.US.
News Tidbits:
- Apple Pay’s new interest-free Buy-Now_Pay-Later feature.
- Gemini getting sued for role in $36m breach of retirement accounts.
- Binance Labs invested in PancakeSwap (CAKE) after its CAKE 2.0 tokenomics upgrade.
At the protocol level ⛓
Lido bear-market prep. A core developer at Lido Finance (LIDO) has posted a proposal to sell 10,000 ETH ($17m) to help finance the protocol in case of a prolonged bear market. Lido Finance currently holds $130m in total assets in its treasury.
NFT & metaverse update 🐵
Illivium’s massive land sale. Illvivium’s massive sale of nearly 20k plots of digital land that began on June 2 raised $72m for the role-playing blockchain game. The land can now be purchased on its secondary exchange.
NFT tidbits:
- Frontier’s BAYC Commercial
Banter’s take
You got to love the Federal Reserve for their poor efforts of showcasing the volatility of digital assets. Which is a perfect lead into today’s closing.
Let’s get one thing straight, digital assets ARE extremely volatile!
Volatility means extreme price swings. But lucky for us, the volatility goes both ways. Unfortunately, most people can’t handle the downside and then become enamored by the upside. Volatility can be a seductive game. A love-hate relationship.
Maybe you’re wondering why Bitcoin is so volatile? Basically, It’s an extremely hard asset to price because nothing similar to it has ever existed. On one hand, bitcoin has the potential to become the world’s reserve currency, historically, providing an excellent long-term investment, and on another, protocols like Terra wipe away billions of money worth of value in a week.
One thing is for sure, some assets like bitcoin aren’t going anywhere and while others try to decide their value, we’ll continually stack our sats. One day, perhaps, Bitcoin’s value will be understood, and its crazy volatility a thing of the past.
Gabri
Disclaimer: I am not a financial advisor, everything on this report is financial opinion. Please consult your financial advisor before participating in crypto.
