Crypto market updates - 4th week - June 2020

Despite some stagnation in a narrow range of the bitcoin price in recent weeks, “Bloomberg” remains optimistic about the bitcoin price as long as it remains above a key support level.

Expert analysts from the above mentioned agency consider that bitcoin is consolidating and therefore, due to the low volatility that the king of cryptos is experiencing, its value is considered to be well contained between certain prices.

Mike McGlone, a senior analyst at this agency said, "Our charts that show an average movement of 260 days between 2019 and 2020 reveals a good resistance target of around $13,000 and support of approximately $6,500 that makes it safe to expect upward trends in the coming months”.

Experts like the one mentioned above also compare these metrics with gold given its relative volatility, so there is some similarity between these assets. Bloomberg predicts that the bitcoin will break the high record of $20,000 and in a relatively short time this year may reach $28,000.

 

Probabilidad de Precios BTC por encima de X$. Fuente: Skew.com

However, despite this optimism, on June 26 and 27, bitcoin again lost ground, struggling to maintain $9,000 support along a very similar line to the S&P 500 index. This group of analysts are in a state of pessimism only in the light of the bitcoin behaviour a few weeks after its halving.

 

Probability of BTC prices above X$. Source: Skew.com

 

       Correlation of BTC Prices and S&P 500 Index. Source: Skew.com

 

Tone Vays, an expert on financial markets including bitcoin, said that "bitcoin prices will not leave the 6K - 10K range until 2021". In the eyes of this financial guru, the floor price for bitcoins is now at $7,000.

On the supply side of the bitcoin market, an American blockchain company called "Core Scientific" has just acquired a very important purchase of state-of-the-art mining equipment from the Chinese manufacturer Bitmain, no more, no less than 17,000 S19 ASIC miners. A large "Mining Pool" complex is being built in Texas given the incentives offered for this type of industrial activity in North America thanks to its advantageous regulations, alongside with the geopolitical stability and climate conditions for electricity generation, as well as the fall in electricity prices. Countries such as USA and Canada are creating the necessary conditions to make the installation of important projects in the crypto industry like this one attractive.

On the other hand, regarding the price of Ether, investors fear that its price may plummet due to the theft of $186 million worth of etheriums by a fraudulent firm called PlusToken after being dismantled in December last year. This is causing some damage to the crypto markets after trying to sell off major holdings in BTC, Ethers and EOS. This fact has also created price correlations between ETH and BTC.

The exchanges, lately, are extremeing their security measures to control illicit movements of cryptocurrecies and to achieve this they are building alliances with market monitoring agencies such as Chainalysis to control these flows. In fact, Paxful Exchange has created a partnership with Chainalysis to control these movements. This exchange is expanding its operations and has already surpassed LocalBitcoins for the first time in global weekly trading volume during the first and second week of June. 

 

As a revelation altcoin, Compound (COMP) crypto is having an outstanding appearance, and it was recently added to the Coinbase exchange. This is an ERC20 token that allows its holders to participate in discussions and decisions about changes to the Compound protocol. Following the inclusion of this token in the Uniswap exchange on 15 June, Coinbase decided to add it to its portfolio offer too. Its starting price at Uniswap was $30 per token, and it is now trading at $249, according to CoinGecko, which means a 830% revaluation in just two weeks. Coinbase decided to support this new crypto after becoming the largest investor in the new token since it was launched by the concept creators in February this year.

In the next article we will talk about this revelation token since its objective is very interesting and brings new functionalities and uses that can be given to the etherium-based ERC20 tokens.

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