Market picture
The
cryptocurrency market lost another 0.5% of its capitalisation overnight, to 1.2
trillion. Most losses came on Wednesday afternoon, while capitalisation has risen
since Thursday morning. Since last May, the market has failed to develop growth
when it reaches levels above 1.22.
The main
benchmark and psychological obstacle in this upward march is Bitcoin’s $30K
level. It manages to go higher within local impulses for a while, but this only
strengthens the local selling. Technically, Bitcoin never managed to break out
of the narrow corridor, turning from decline to rise with the start of active
trading on Thursday.
This
resistance is temporary, and after some consolidation, we should expect a new
test of this resistance. At the same time, one should not write off what is
happening in the global equity markets. In spring, Bitcoin gained in March on
the problems of regional US banks. Still, if the pressure on stocks increases
due to the economic slowdown, the correlation between stocks and
cryptocurrencies will be positive again.
News background
The
Stablecoin sector has yet to fully benefit from Bitcoin’s rally to annual
highs, drawing attention from Fitch.
In June, aggregate
trading volume on centralised cryptocurrency exchanges rose for the first time
since March. According to CCData, the figure rose 14.2% to $2.71 trillion.
In
Australia, the offices of Binance were searched as part of an ongoing
investigation into the crypto exchange’s activities in the country. An
Australian Securities and Investments Commission (ASIC) spokesperson said the
regulator’s probe into the company is ongoing.
Authorities
in Denmark have ordered Saxo Bank to curtail cryptocurrency trading. All
digital asset positions must be eliminated by 2024, as cryptocurrency trading
is not on banks’ list of permitted activities.
Kenya has
introduced a 3% tax on cryptocurrency transactions. According to a UN report,
Kenya has the fifth highest global adoption of cryptocurrencies, with 8.5% of
the country’s population owning them.
This article was written by
FxPro’s Senior Market Analyst Alex Kuptsikevich.