Crypto Weekly Wrap: 21st June 2024
VanEck's Bitcoin ETF Debuts on Australia's Largest Stock Exchange
The VanEck Bitcoin ETF, which allows Australian investors to gain exposure to Bitcoin through its U.S. equivalent, made a promising debut on the Australian Securities Exchange (ASX). This listing marks a significant milestone as it becomes the first spot Bitcoin ETF on the ASX, which handles 90% of Australia's equity market. The ETF saw a 1% rise on its first day, closing at A$20.06 ($13.4) after trading nearly 100,000 shares. This launch signifies a growing demand for accessible cryptocurrency investment options in Australia.
Monochrome Asset Management's Bitcoin ETF, which holds Bitcoin directly, had already set a precedent by listing on the smaller Cboe Australia exchange earlier. Together, these ETFs reflect a broader trend of increasing Bitcoin ETF offerings globally, providing more avenues for investors to enter the cryptocurrency market.
SOL/ETH Ratio Hits a Three-Month Low
The SOL/ETH ratio has experienced a sharp decline, falling 35% in a month and hitting its lowest level since March. This drop is attributed to the growing interest in Ethereum ETFs, which has drawn investment away from other altcoins like Solana (SOL). Technical analysis indicates a bearish outlook, with the ratio crossing below the Ichimoku Cloud support—a signal of potential further losses.
Crypto analyst Josh Olszewicz notes that the SOL/ETH pair's failure to maintain an ascending triangle pattern suggests a bearish trend. Despite this, temporary recovery rallies might occur, especially if there are outflows from the Grayscale Ethereum Trust. However, unless major events like a BlackRock SOL ETF application occur, the bearish trend is expected to continue.
Consensys Continues Legal Battle with SEC
Blockchain software company Consensys will proceed with its lawsuit against the U.S. Securities and Exchange Commission (SEC) despite the agency dropping its investigation into the Ethereum ecosystem. The SEC's probe, which lasted 14 months, was related to Consensys' crypto wallet service, MetaMask. Consensys argues that the investigation was unnecessary, especially given the 2018 declaration of ETH as a commodity.
Joseph Lubin, co-founder of Consensys, emphasised the need for clearer regulation and criticised the SEC's enforcement approach. The lawsuit aims to challenge the regulatory environment and seeks legal clarity for the broader cryptocurrency market. This ongoing legal battle highlights the friction between crypto companies and regulatory bodies in the U.S.
Bitcoin Price Analysis: Navigating Market Volatility
The Bitcoin market has been experiencing significant fluctuations, reflecting broader economic uncertainties and central bank policies. Recently, Bitcoin has been hovering just below the $65,000 mark. A breakthrough above this level could signal a bullish trend, potentially pushing prices towards $67,000. However, if the price falls below the $64,000 support level, a decline to $62,000 could ensue.
The recent 92% surge in Bitcoin's price following the announcement of a Bitcoin ETF has led to volatile trading patterns. Central bank rate cuts globally might support Bitcoin's value, but the U.S. Federal Reserve's policies remain a critical factor. Market participants are closely watching for a daily close above $65,000 to confirm a short-term buying opportunity, with a potential target of $67,000.
Jasmy and Cardano Face Market Volatility
Jasmy experienced a significant price increase of 75% between late May and early June, but the subsequent bearish divergence in the Relative Strength Index (RSI) suggests a potential price correction. Similarly, Cardano (ADA) has seen considerable volatility, with its price fluctuating over the past year. Despite a recent dip, favourable developments in the Cardano ecosystem have bolstered ADA's position.
Cardano's ability to recover amidst broader market challenges underscores its resilience and growing investor confidence. The cryptocurrency's recent ascent to the top ten by market value further reflects its increasing popularity.
Tether Faces Accusations of Corruption and Money Laundering
A campaign led by the non-profit organisation Consumers' Research has accused Tether of corruption and facilitating illegal activities. An advertisement in Times Square, New York, compared Tether to the collapsed FTX exchange, labelling it a "Ponzi scheme." The organisation claims that Tether's USDT stablecoin is commonly used for illicit transactions, including terrorism financing and money laundering.
Tether responded to these allegations by emphasising its cooperation with law enforcement agencies and the impracticality of using blockchain-based USDT for illegal activities. The company has invited further dialogue to address these concerns, highlighting its commitment to financial transparency. This controversy adds to the ongoing debate about the role of stablecoins in the cryptocurrency ecosystem and the need for robust regulatory frameworks.
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