Tag: Neutral

Bitcoin’s Biggest Risk Is Boredom, Not Another Price Crash: CryptoQuant CEO

Bitcoin has demonstrated a remarkable resilience, capable of weathering further price crashes just as it has in the past, according to Ki Young Ju, CEO of CryptoQuant. However, he identifies a more significant threat looming over the cryptocurrency: boredom, a concern he links to Strategy’s STRC shares, which have recently drawn considerable attention.

For those who have followed the cryptocurrency industry for several years, its inherent volatility is well-known. Bitcoin, in particular, has experienced dramatic price swings, both upward and downward. While sharp liquidations during downturns often capture headlines, with daily double-digit percentage drops occurring frequently, the asset has also seen equally dramatic surges.

The current market conditions, along with the past several months marked by significant downturns such as the early October “massacre,” the February “calamity,” and the June crash, have been characterized by bear-dominated trends. Despite these challenges, Bitcoin has managed to endure and, for the moment, has rebounded with renewed strength.

Consequently, CryptoQuant’s chief executive appears unconcerned about the possibility of another price crash. Instead, he posits that boredom could represent a more profound threat, particularly if Strategy’s controversial Stretch (STRC) token fails to perform as anticipated.

“Strategy’s STRC structure becomes truly dangerous not when Bitcoin simply crashes, but when Bitcoin spends years moving sideways, and the bear market drags on,” Young Ju stated.

He elaborated that “long stagnation kills the story,” as Bitcoin can withstand another crash if the market maintains faith in future upward momentum. However, a prolonged period of weak demand due to stagnation would lead to a compressed MSTR premium, making it “much harder to sustain Saylor’s capital-raising machine.”

Young Ju further explained that the primary challenge for Michael Saylor and his company, MicroStrategy, is not merely to continue acquiring Bitcoin but to provide the market with “a new reason to believe.”

“After nearly a decade in this industry, I’ve realized Bitcoin’s core has not really changed. What changes every cycle is the story around why BTC price should keep going up. But, most of those stories now feel exhausted,” he observed.

He cautioned that Bitcoin failed to function as digital gold when it was most needed, trading instead like a tech stock. Originally envisioned as “freedom money” by cypherpunks, many early adopters are now promoting other cryptocurrencies. Furthermore, Bitcoin faces the growing threat posed by advanced quantum computing.

While Young Ju remains a firm believer that “the pool of capital that could flow into Bitcoin is massive,” he noted that the “sense of an inevitable catalyst feels much weaker” now compared to a decade ago.

“It makes me a little sad to see the ideas that originally pulled me in gradually get consumed and diluted: freedom money, energy money, and institutional adoption,” he concluded.

Bitcoin’s price has seen a modest recovery since dipping below $62,400 on Friday, adding approximately $2,000 from its local low to reach $64,400 in recent hours before encountering some resistance.

The broader altcoin market has largely remained stagnant over the past 24 hours. Monero (XMR) and NEAR Protocol (NEAR) are among the few exceptions showing gains, while Ondo (ONDO) has experienced a decline of over 3.5%.

June commenced on a decidedly negative note for Bitcoin, with the cryptocurrency plummeting from $73,000 to $59,100 within a five-day span. However, bulls intervened following this downturn, preventing a further significant drop. The subsequent rebound propelled BTC to $64,000 by the beginning of the current business week. An attempt at a more substantial breakout occurred last Sunday and Monday.

During that period, news emerged of a potential deal between US President Donald Trump and Iran, reportedly slated for signing by June 19. Bitcoin reacted with an immediate surge to $67,200 on Monday, marking its highest price in two weeks. This upward momentum faltered, however, facing renewed selling pressure exacerbated by the Federal Open Market Committee (FOMC) meeting on Wednesday, which ultimately led to the dip below $62,400 by Friday.

The anticipated deal has yet to materialize, a factor that may be contributing to the prevailing market weakness. Despite these headwinds, Bitcoin has managed to regain some footing, touching $64,400 earlier today. While this level presented a ceiling, the cryptocurrency continues to trade above $64,000 at the time of this report.

Bitcoin’s market capitalization remains above $1.285 trillion, according to CoinGecko, with its dominance over altcoins holding steady above 56%.

As noted, larger-cap altcoins have exhibited minimal volatility today. Ethereum is trading around $1,730, BNB is priced at $590, and XRP is hovering just below $0.15. Solana, despite significant token deposits to exchanges, has seen a gain of over 2% to $73. Tron (TRX), CorgiCoin (CC), and Monero (XMR) are also in positive territory, while HyperToken (HYPE) and Stellar (XLM) have experienced declines.

NEAR Protocol has climbed 3.5% to $2.24, while Ondo is trading below $0.34 following a 3.2% decrease. LAB has once again emerged as today’s top performer, surging by over 25%. It is now trading well above $15, reflecting a 230% increase over the past month, and is nearing the top 20 altcoins by market capitalization. AERO has also seen substantial gains, with an 11% increase propelling it into the top 100 altcoins.

The total cryptocurrency market capitalization has reached $2.290 trillion on CoinGecko, indicating another minor increase on a daily basis.

Kiyosaki Explains His Approach to Buying Assets Amid Market Declines

Robert Kiyosaki, the author of the influential investment book “Rich Dad, Poor Dad,” has shared his perspective on asset acquisition, emphasizing that current prices are not the sole determinant of opportune investment timing. He elaborated on his readiness to increase holdings in Bitcoin (BTC), Ethereum (ETH), silver, and gold, even as these assets have experienced recent downturns.

The past year has been tumultuous for investors across various asset classes. Bitcoin began the year with an ascent towards $100,000, a level it failed to breach, followed by several challenging months. The cryptocurrency’s correction reached a low of $59,100 in early June. Ethereum mirrored this trend, dropping to $1,500 a few weeks prior. While both have seen some recovery since, they remain significantly down year-to-date.

Even traditionally stable assets like silver and gold have seen substantial losses. Silver, which traded above $120 at the start of the month, is now nearly 50% below that peak. Gold, after soaring to $5,600 per ounce, has experienced a painful crash, ending the business week below $4,160 per ounce, a correction of 25%.

Kiyosaki contends that these price drops are not the only crucial factor. He admitted to recently making the error of allowing “price to determine reasons to buy or sell any asset.” He has since learned to prioritize understanding the “context” or environment surrounding an asset, rather than its price alone.

The author and investor explained his shift in focus to the technical charts of Bitcoin, Ethereum, silver, and gold. He stated he “will buy when prices reverse their decline.” Furthermore, he predicted that the two precious metals are “poised for a massive rise in prices.”

The year-to-date declines and significant drops from their respective January peaks have raised questions about the safe-haven status of both Bitcoin and gold among some analysts. Market observer Charlie Bilello recently noted the difficulty in explaining these price drops, particularly when most major stocks have seen double-digit gains.

Bilello attributes a significant portion of this movement to investor rotation, with capital shifting towards the technology sector, largely driven by the artificial intelligence boom. He suggested that investors are favoring assets with earnings momentum over stores of value that offer negligible yield.

Arthur Hayes Sells Entire Ethereum Stake Days After Purchase, Incurring Significant Loss

Arthur Hayes, the former CEO of cryptocurrency exchange BitMEX, has once again engaged in a rapid and reportedly unprofitable trading maneuver, this time liquidating his entire Ethereum (ETH) position just days after acquiring it. The move follows a pattern of what some observers have described as erratic crypto market activity from Hayes.

On-chain data analyzed by Lookonchain revealed that Hayes had amassed a substantial ETH holding starting June 17. His initial purchase involved 1,400 ETH for $2.51 million. He continued to expand his stake in the following days, including another significant acquisition of 1,500 ETH for $2.63 million. In total, Hayes acquired approximately 5,900 ETH for $10.58 million, at an average price close to $1,800 per token.

However, Lookonchain analysts reported that Hayes proceeded to sell even more than he had bought. Wallets associated with him disposed of 6,000 ETH for $10.14 million on Friday, resulting in a loss exceeding $600,000 within a matter of days. A social media post from Lookonchain highlighted the situation, stating, “Arthur Hayes (@CryptoHayes) is buying high and selling low again.”

The swift sale and subsequent loss have drawn sharp criticism from the crypto community, particularly given Hayes’ recent history of allegedly promoting altcoins only to sell them shortly thereafter. Many comments on social media platforms expressed disapproval of his trading strategy.

Interestingly, while many altcoins Hayes has recently offloaded have seen price declines, Ethereum has shown resilience. Since his average selling price, ETH has seen a slight increase, trading above $1,720.

Meanwhile, other significant market players appear to be accumulating ETH. Data from the same monitoring resource indicates substantial inflows into private wallets. A wallet linked to K3 Capital withdrew 10,000 ETH, valued at over $17 million at the time of reporting, from Binance. Separately, a wallet associated with Chun Wang purchased and transferred 7,650 ETH, worth approximately $13 million, out of the world’s largest cryptocurrency exchange.

These large-scale acquisitions are occurring as analysts continue to debate whether Ethereum, the second-largest cryptocurrency by market capitalization, is approaching a potential bear market bottom. Some market watchers believe that ETH may find its floor sooner than Bitcoin.

Bitcoin Slides as Warsh Stays Hawkish and Markets Await a Lasting US-Iran Agreement: Weekly Recap

The cryptocurrency markets experienced another volatile week, punctuated by geopolitical developments and central bank policy signals. Early in the week, promising news emerged regarding a potential deal among parties involved in the Middle East conflict, initially sparking optimism.

However, the path forward proved complex. Bitcoin’s price struggled to breach the $64,000 mark until Sunday evening, coinciding with the announcement of a potential deal. This news triggered an immediate surge, propelling BTC to $66,000 within hours and further to over $67,000 on Monday, reaching a multi-week high.

The rally was short-lived. In the hours preceding the Federal Open Market Committee (FOMC) meeting on Wednesday, the first under the new Fed Chair, Bitcoin dipped below $65,000 before briefly jumping to $66,400. However, the Federal Reserve’s confirmation of no interest rate cuts, as widely anticipated, coupled with a hawkish tone from former Fed Governor Kevin Warsh in his subsequent speech, led to another decline.

Bitcoin continued its downward trend in the following days, hitting a weekly low of $62,300 earlier today. This slump occurred amid growing concerns that a memorandum of understanding between the United States and Iran might not materialize. Nevertheless, reports emerged today that Israel and Hezbollah have agreed to a ceasefire, scheduled to commence at 14:00 BST on Friday.

In response, Bitcoin saw another uptick, trading above $63,000 as of press time. The cryptocurrency is likely to gain further momentum if a permanent deal is indeed signed as promised. However, the broader market sentiment remains fragile, particularly with ongoing uncertainty surrounding Strategy and its controversial STRC shares. Further details on this will be provided shortly.

For the week, Bitcoin remains in negative territory, alongside BNB, DOGE, XMR, CC, BCH, and ADA. In contrast, HYPE, XLM, WLD, UNI, and RAIN have posted double-digit gains.

Market Cap: $2.26T | 24H Vol: $75B | BTC Dominance: 56.1%
BTC: $63,230 (-1.3%) | ETH: $1,700 (+0.85%) | XRP: $1.14 (-0.9%)

Strive CEO: Sharp STRC, SATA Drops Were Leverage Liquidations, Not Credit Failures

Despite making another $100 million Bitcoin acquisition this week, Michael Saylor’s Strategy has faced scrutiny over its STRC shares. The financial vehicle has fallen significantly below its intended $100 price point, and a sharp decline on Thursday exacerbated investor concerns, even as Strive’s CEO defended the product and its issuer.

Bitcoin Dips Below $64K Again: Here’s How Whales Reacted

Amidst Bitcoin’s price instability and persistent weakness, large holders, or “whales” (those with at least 1,000 BTC), have increased their holdings to their highest levels in over three months. These entities now control nearly 36% of Bitcoin’s available supply.

Morgan Stanley Files Amendments, Clearing Path for Cheapest ETH, SOL ETFs

Months after launching its Bitcoin ETF, Morgan Stanley has filed amendments for its Ethereum and Solana ETF applications. If approved, these new financial products are expected to be the most cost-effective on the market and will incorporate staking arrangements.

BlackRock Rolls Out Bitcoin Income ETF as Demand for Covered Calls Grows

In related news, the world’s largest asset manager, BlackRock, has launched its iShares Bitcoin Premium Income ETF (BITA). This new offering expands its product lineup with a yield-focused vehicle designed to capitalize on the growing demand for covered call strategies.

Illinois Passed the Most Anti-Crypto Law in the US: Miles Jennings

On June 17, Illinois enacted the Digital Asset Privilege Tax Act. Miles Jennings of Andreessen Horowitz described the legislation as “one of the most anti-crypto laws in the US,” imposing a 0.2% tax on the exchange, transfer, and custody of cryptocurrencies, with limited exemptions for routine self-custody activities.

Bitmine Adds $135M in ETH, Closing In on 5% of Ethereum Supply

The broader market’s weakness has not deterred Bitmine from its objective of acquiring 5% of Ethereum’s total supply. In its latest acquisition, the company announced it had purchased approximately 77,000 ETH for $135 million, bringing its total holdings to 5,620,754 tokens.

This week’s analysis also includes charts and price action for Ethereum, Ripple, Cardano, Binance Coin, and Hyperliquid. A complete price analysis is available.

A prominent cryptocurrency analyst has identified a critical technical indicator for XRP, suggesting its two-month Relative Strength Index (RSI) has reached a pivotal 50 mark. This level, according to the analyst, serves as a dividing line between a potential continuation of a broader market downturn and the commencement of a new expansionary phase for the digital asset.

XRP is currently trading around $1.12, reflecting a nearly 5% decline over the past 24 hours and an approximately 18% drop in the last month.

EGRAG CRYPTO, in a June 19 post on X, outlined a recurring pattern observed in XRP’s longer-term charts: a significant surge, followed by a cooling period, a reset, and ultimately, an expansion. The analyst noted that XRP’s two-month RSI is now positioned precisely at the 50 threshold, which he characterizes as a “battlefield level” rather than a definitive signal for either direction.

His reasoning suggests that maintaining a position above 50 indicates an attempt by momentum to stabilize. Conversely, a decisive drop below this level could pave the way for a deeper correction, potentially targeting the 43.66 RSI zone.

EGRAG CRYPTO believes that a recovery and sustained hold above the 52.85 to 55.45 range would signal a repair in macro momentum. From that point, he identifies the 80 RSI as the level where a more aggressive upward trajectory could come into play.

“The 2-month RSI does not speak often. But when it does, it speaks MACRO,” the analyst stated.

Complementing this RSI analysis, EGRAG CRYPTO also pointed to XRP’s two-month chart, which he believes is forming an ascending triangle with an A-B-C-D-E structure. He assesses that the initial four waves are complete, and the token may now be navigating the final “E” wave before attempting a breakout.

However, the analyst cautioned that his price targets remain contingent on several factors. XRP must first establish rising support, reclaim its 7-week moving average, and overcome resistance between $2.00 and $2.10. Only then would broader Fibonacci-based targets, ranging from $9.50 to an “extreme cycle extension” near $100, become relevant.

This outlook aligns with a previous analysis by EGRAG CRYPTO, where he mapped out three historical pump scenarios for XRP based on a larger triangle pattern. In that assessment, the conservative case projected a price range of $6.50 to $9.27, a “balanced” cycle case around $13, and an extreme case near $60, all modeled on XRP’s initial major cycle movement.

The broader market context for XRP has been challenging. The asset has fallen below the $1.20 support level following Federal Reserve Chair Kevin Warsh’s first FOMC meeting and press conference. Some analysts have warned that a rejection at the $1.20 to $1.21 resistance could push the sixth-largest cryptocurrency towards the $1.00 mark.

On-chain activity has also shown a slowdown, with active addresses decreasing by nearly 50% in the past two weeks, according to analyst Ali Martinez. Furthermore, over the last five days, large holders have divested more than 30 million XRP, although they still collectively control nearly 70% of the asset’s total supply.

Despite these headwinds, a positive development has been the performance of spot XRP Exchange-Traded Funds (ETFs). These products have continued to attract inflows even as Bitcoin and Ethereum funds experienced outflows. Data from SoSoValue indicates that in the week leading up to June 18, net inflows for XRP ETFs reached $10.66 million, contrasting with the $226 million bled by BTC ETFs and the $10.05 million lost by ETH-tracking funds during the same period.