Not your Keys. Not your Crypto | On-Chain Outlook, Edition #43 (29/06/2022)
Hump day for Bitcoin! Get the latest coverage of crypto markets with a view On-Chain... 👇
ETH 2.0 draws closer as Ropsten completes its first successful merge
To make short work of things, let us briefly recap the recent developments from the on-chain perspective.
The available supply of Bitcoin on exchanges continues to dwindle. In comparison, the available supply of Ethereum on exchanges shows little signs of easing its rise.
As previously mentioned, one explanation for Bitcoins decreasing supply could be the mantra,
Not your key. Not your crypto.
Recall the idea that traders might now prefer to keep BTC asset holdings in their own hands. Instead, these participants might use fiat currencies (i.e. US Dollars) as collateral margin when trading leveraged contracts (e.g. futures, options, CFDs).
On the contrary, Ethereum supply appears to continue rising.
One might look to the release of Ethereum's highly anticipated network upgrade, ETH 2.0, for a possible explanation.
Although the launch is expected to take place around September to October this year, practitioners should not rule out the chances of further delays in the network upgrade's release schedule.
Now for some big news.
Ropsten, a testing network or 'testnet', was successfully merged in an exciting development for Ethereum users.
Perhaps, as the release of ETH 2.0 draws nearer, people are filling wallets on exchanges in preparation for staking?
With crypto lenders still facing a load of strife, the general condition of market sentiment is far from optimistic. The underlying fear and uncertainty rampant in markets give credence to another possible reason for this increasing availability of Ethereum on the exchanges, in particular futures-based supply.
Maybe, to cover their positions as the market rate draws closer to liquidation prices?
Considering new reports of 3AC defaulting on Voyager's loan, the market might have more reason for concern as exchanges partake in pausing withdrawals should extreme volatility pick up again.
Sentiment is still very bearish and stuck in a risk-off mindset.
Practitioners search for more conservative bets amidst the monetary tightening that central bank policymakers are undertaking as world economies fight soaring consumer price inflation.
There is an urgent need to see inflation ease into target ranges to restore faith in the central banks' ability to achieve their mandated goals.
One of which is to ensure price stability in their respective economies.
In terms of cryptocurrency, the Bitcoin Dominance (BTC.D) appears to outperform in a bear market.
Bitcoin Dominance Index, BTC.D - Daily (D1)
See above, BTC.D edges closer to 48% of the total market capitalisation.
Often touted as the 'safe-haven cryptocurrency,' it is typically the first to move when a bull market resumes. So it makes sense that the market is accumulating Bitcoin—or moving back into—while the market is bearish and preparing for the next halving cycle.
Bitcoin vs. US Dollar, $BTC - 4 Hour (H4)
Insufficient volume seems to have led to decay.
The market still looks remarkably spooked after the recent developments with cryptocurrency lenders, of which further coverage is scheduled for the coming edition of the Technical Outlook.
A retest of the US$ 17K lows is more credible at this stage. Unless $BTC can decisively reclaim its major local support…
See you again for the next update.
Did you learn something new in tonight’s research feature? Let us know in the comments to help us deliver more quality crypto and blockchain research 🤗
We’re on a mission to a New World.
It’s a place where people come to share in the wonderful gifts of trading. Where individuals come to qluster their knowledge, united by a shared love for learning.
This is Trading Made Social.
Help us on our mission by sharing the gift of Trading Made Social to new explorers.
Join our Facebook group and connect with likeminded traders 🚀
Like and Follow our Facebook page for activity updates 📣
Connect with us on LinkedIn for future updates 🤝
The information on this website is for general information purposes only. It is not intended as legal, financial and/or investment advice and should not be construed and/or relied on as such. Before making any commitment of a legal and/or financial nature you should seek advice from a qualified and registered legal practitioner and/or financial and/or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal and/or financial product. Qluster does not recommend and/or endorse products and does not receive remuneration based upon investment and/or other decisions