Bitcoin
After quite a strong run up last week, Bitcoin was unable to break the $72k USD resistance. Since then the price has had two volatile sell offs and went as low at $66k, down 8.4% from its weekly high of $72k. As we were unable to break this level we believe that we may continue accumulating in this range before the next move up. It is important to remember that post halving Bitcoin usually experiences a lot of volatility and good opportunities can arise in these conditions.
Bitcoin Weekly Price Chart
Binance's Milestone and Global Acceptance
This week, Binance celebrated a major milestone, surpassing 200 million global users. This achievement highlights the platform's dominance and widespread adoption, reflecting the growing trust and maturation of the asset class.
Globally, cryptocurrency ownership has seen a significant increase. The United Arab Emirates leads with a 25.3% ownership rate, followed by Singapore at 24.4%. Australia also stands out with a 9.6% ownership rate, above the global average of 6.9%. The United States, with an ownership rate of 15.5%, ranks as the 8th largest, more than double the global average. Countries ownership are growing exponentially and soon we believe these numbers will be much higher, however the average global ownership of 6.9% showcases how early we really are in an asset class with such high opportunity and potential.
In total, 562 million people now own cryptocurrencies worldwide, marking a remarkable 34% increase in ownership from 2023. This surge showcases the expanding acceptance and integration of cryptocurrencies into the global financial landscape.
Fundraising Breakdown - May
According to data aggregated by Messari, we saw deal volume decrease 8.8% month-over-month (MoM) , totalling $1.28 billion. Despite this, the number of deals slightly increased by 0.7% MoM to 303 deals, maintaining a strong growth since August 2023. This indicates that while the overall deal value has slightly declined, the market activity and investor interest remains high.
The Financial sector within the crypto industry experienced the largest amount of deal activity, accounting for 25.2% of fundraising volume with $323 million. Of this, Polymarket raised $70m in a Series A and B round.
Polymarket is a decentralised prediction market platform where users can place bets on the outcomes of various events. It covers categories such as politics, sports, cryptocurrency, pop culture, business, and science. The platform leverages blockchain technology to ensure transparency and security in its betting processes, allowing users to speculate on future events and potentially earn rewards based on their predictions.
For instance, below is the current odds for the Presidential race show that over 56% of participants are betting in favour of Trump winning. This indicates a significant lean towards Trump among users who are speculating on the outcome of the election. Polymarket's platform provides a transparent and dynamic way to gauge public sentiment.
Presidential Election Odds - Polymarket
Trump Claiming "Crypto President"
President Trump recently declared his intention to become the 'crypto president' at a private fundraiser in San Francisco. It was also reported he pledges to “end Biden’s crypto crusade” and “keep crypto at home.” Donald Trump is positioning himself as a leading candidate for the upcoming November elections, largely by appealing to the crypto industry. His strategy to be the spokesman for the crypto industry has created a more favourable environment for crypto innovation and adoption in the United States.
U.S. Bitcoin ETFs
From June 3 to June 7, ETFs saw an inflow of approximately $1.8 billion. Despite this significant investment, the price of Bitcoin struggled to surpass the 72k mark, highlighting strong resistance at this level. This suggests that while there is considerable interest and capital flowing into Bitcoin ETFs, the market still faces substantial selling pressure at higher price levels.
The positive inflow streak for cryptocurrency investments ended on June 10, marking the first day of net outflows after more than a month of consistent positive inflows.
Furthermore, as we await for the launch of Ethereum ETFs, some analyst believe these ETFs have the potential to capture up to 20% of the flows currently going into Bitcoin ETFs. This indicates there may be strong institutional and retail interest in Ethereum as a key asset for investors wanting higher exposure to this asset class.
Bitcoin ETF Flow Table (US$m)
Thinking About Trading