Crypto Weekly Review June 12 – BTC Resumes Downward Trend
- Bitcoin (BTC) and the broader crypto market took a hit, with US inflation and sentiment towards Fed monetary doing the damage.
- For BTC, it was a tenth weekly loss in 11 weeks, with the broader crypto market following BTC into the deep red.
- News updates from several leading crypto networks failed to soften the blow.
Crypto market conditions deteriorated rapidly after a brief pause at the turn of the month. While the markets moved on from the collapse of (UST) and Terra LUNA, investors were unable to shake inflation jitters.
US inflation numbers on Friday suggested that free money could be coming off the table sooner than many had anticipated.
Calls from lawmakers for greater regulatory oversight of the digital asset space added to the market angst in the week.
Bitcoin (BTC) on Target for a Tenth Weekly Loss in 11 Weeks
Bitcoin enjoyed a bullish start to the week before hitting reverse. Hopes of a market bottom, following a first weekly gain in ten weeks, supported the broader market.
On Monday, bitcoin rallied by 4.8%, returning to $31,700 before succumbing to broader market forces.
Going into Sunday, bitcoin was down for five consecutive days. Barring a Sunday rebound, a 4% fall for the week would leave bitcoin at its lowest weekly close since December 21, 2020.
At the time of writing, bitcoin was down 4.73%% to $28,507 for the week ending June 12. Bitcoin would need to wrap up the week at $30,000 to log a second consecutive weekly gain.
Bitcoin movements through to Friday closely tracked the NASDAQ 100, which ended the week down 5.60%.
An inverse correlation with WTI crude oil prices was also evident in the week, reflecting the influence of market sentiment towards inflation on the crypto market.
The Crypto Bears Regained Control in a Bearish Week for the Top Ten
In the week ending June 12, SOL is set for a 12% fall to log a tenth consecutive weekly decline.
At the time of writing, ETH leads the way done for the week, sliding by 15.13% to $1,500 levels. News of a possible migration delay to a proof-of-stake protocol added to the selling pressure.
The total crypto market cap rose to a Monday high of $1,284 billion before sliding to a Saturday low of $1,105 billion.
Barring a broad-based crypto rebound on Sunday, the total market cap will fall for a ninth week out of ten, with another $100 billion coming off the table.
Crypto News Highlights of the Week
- SEC investigates whether BNB was a security when sold in 2017.
- Reuters reported Binance being a ‘conduit for laundering at least $2.35 billion in illicit funds.’ Binance responded to the report.
- PayPal announced the option to send and receive crypto to other wallets.
- A bipartisan bill backed by Republican Cynthia Lummis and Democrat Kirsten Gillibrand would make the CFTC the crypto watchdog.
- Citadel Securities builds a crypto trading marketplace.
- Updates from the June 7 court-scheduled SEC-Ripple conference favored Ripple Lab.
- The New York Department of Financial Services (NYDFS) published guidelines on the issuance of stablecoins.
- Tether announced the launch of USDT on Tezos, making it the thirteenth blockchain.
- Global bitcoin (BTC) adoption could be up by a further 10% by 2030.
- Ethereum core developers announced another delay, sinking ETH.
- Deloitte survey showed more than 75% of US merchants are planning to accept digital currencies within the next 24 months.