Crypto Market Daily Highlights – June 6 – BTC Delivers Market Support

Key Insights:

• Bitcoin (BTC) delivered broad-based crypto market support on Monday, following an end to the record nine-week losing streak.
• Risk on sentiment from the global equity markets added to the bullish mood, though a pullback in the NASDAQ from day highs limited the upside for the crypto majors.
• Monday’s rally mirrored the bullish start to the previous week.

It was a bullish Monday session for the crypto market, with market risk appetite returning at the start of the week.

An end to a nine-week losing streak for bitcoin (BTC) set the tone, with the crypto top ten finding strong support through the morning session.

Bitcoin struck a day high of $31,740 before easing back, correlation with the NASDAQ 100 evident in the US session.

Mirroring the gains from Monday, May 30, a pullback from day highs was inevitable, with headwinds ever present.

Increased lawmaker chatter on the need for greater regulatory oversight remains a risk. There is also the ongoing SEC v Ripple case for investors to consider, though it may be some time before the case concludes.

From a more broad-based market risk sentiment perspective, sentiment towards Fed monetary policy remains a headwind. The Fed’s next monetary policy decision and forward guidance will influence ahead of any shift in the regulatory landscape.

Crypto Market Cap Avoids sub-$1,200 bn for the First Time in 4 Sessions

On Monday, the total crypto market cap jumped by $63 billion to a day high of $1,277 billion before easing.

Significantly, the total market avoided a fall to sub-$1,200 billion levels for the first time in four sessions.

We continue to see a hold above the May 12 current year low of $1,082 billion as the key to any broad-based recovery.

On Monday, BTC rose by 4.84%. A move through $31,500 provided strong market support.

SOL rallied by 10.01% to lead the way. A bullish morning had seen SOL up by 16%, with a day high of $44.65, before easing back.

Across the rest of the top ten, ADA (+7.34%), DOGE (-1.82%), ETH (+2.97%), and XRP (+1.98%) also joined BTC in positive territory.

BNB bucked the trend, however, with an 1.34% loss. News of an SEC investigation into whether Binance Coin was sold as a security in 2017 weighed.

Total Crypto Liquidations Indicate Subdued Selling Pressure

Market conditions were benign relative to last week. According to Coinglass, 24-hour liquidations stood at $165.5 million. While up from weekend levels, liquidations remained well below the $500 million levels seen midway through last week.

1-hour and 4-hour liquidations suggest an easing in selling pressure, which supported the bullish session.

At the time of writing, total liquidations over one hour stood at $1.19 million.

The markets will likely continue to keep an eye on liquidations, with any spike a test of support.

Crypto News Highlights from the Day,

• SEC investigates whether BNB was a security when sold in 2017.
• Kim Dotcom predicts ‘Great Economic Reset’.
• Bermuda stays on course to become a crypto hub.
• Dial-in details for the June 7 SEC v Ripple Lab conference on William Hinman’s speech-related documents available for interested parties.
• US lawmakers to discuss the ‘Responsible Financial Innovation Act, a bill to introduce crypto regulations.
• Reuters reported Binance being a ‘conduit for laundering at least $2.35 billion in illicit funds.’ Binance responded to the report.