Cryptocurrency Market Review
Thursday, June 6, 2024
📈 Bitcoin is pushing against the resistance zone of $71.5k - $72.0k and is likely to break through soon.
📊 Yesterday, stock markets saw gains, with NASDAQ and S&P500 reaching new highs .
Today, however, they remain flat.
The Bank of Canada lowered its rate yesterday, followed by the ECB today .
🚀 Meanwhile, the US national debt and the cost of servicing it are skyrocketing .
📈 Given these circumstances, the Federal Reserve will soon have no choice but to lower its rate. Dollar generation has already resumed, with the M2 indicator rising steadily.
💵 Debt bonds, actively sold by their holders, are being bought back using US treasury funds.
Currently, Fed rate futures indicate the first rate cut in September.
If it happens sooner, it would be highly positive for the market.
The market capitalization is growing, now standing at $2.58 trillion.
⚔️ This growth is mainly driven by Bitcoin, while altcoins lag behind. Ether has yet to solidify above $3.8k, and altcoins are growing selectively. The top performers for the day are FLR, INJ, and Dydx, as the market eagerly anticipates the outcome of the "Bitcoin vs. $72.0k" battle.
📥 IBIT has been experiencing strong inflows for the second consecutive week.
News Highlights:
🔹 Semler Scientific (USA) announced the acquisition of 581 BTC as a reserve asset, leading to a 30% rise in its shares.
🔹 MicroStrategy, the first public company to purchase Bitcoin (in August 2020), saw a 438% increase in its shares this year.
The question remains: how quickly will public companies realize that buying Bitcoin and announcing it is a sure way to boost their market capitalization, regardless of their core business performance?
I believe they will catch on quickly, and many will follow suit. This could become another significant growth factor .
🔹 Gensler mentioned that the timing of the ETH-ETF launch depends on how swiftly issuers respond to SEC inquiries.
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