The crypto markets were brimming with excitement to start 2021. But as we enter the dog days of summer, bitcoin and other cryptocurrencies are flatlining, sentiment has soured, and some are now openly pondering whether we’re in the first phases of a new bear market.
Kraken Intelligence’s latest monthly market report finds that although bitcoin remained range bound between $30k and $42k, a late month rally could signal a sentiment bottom. Bitcoin market cap dominance — a metric for determining if BTC or altcoins will show greater strength when a new trend emerges — soared to a one month high as it outperformed the rest of the market.
Even with the market focused on bitcoin, interest in ether didn’t exactly evaporate in June. Quite the opposite. Our team found the number of ETH whales hit a new all-time high as the number of BTC whales sunk to a 13-month low. This coupled with ETHBTC bouncing off a key support level suggests ether could continue to outperform bitcoin should the bull market resume.
As our team provides a full breakdown of ADA, DOT, DOGE & UNI, we provide a unique look at GBTC. In July, millions of dollars will be unlocked from Grayscale’s Bitcoin Trust in what some analysts are calling a bearish event. Our report outlines why this could in fact be a bullish catalyst!
Some noteworthy events in June:
- Dogecoin co-creator bought DOGE for the first time in 8 years
- On June 11, a rare CryptoPunk alien sold for $11.8M in a Sotheby’s auction; the sale is the most expensive CryptoPunk purchase to date
- Kusama launched Parachain auctions – Karura won the first auction
- El Salvador made headlines after it made BTC legal tender alongside the US dollar. The law is expected to come into effect later this year.
The market may be feeling a sense of unease and preparing for the worst, but our team removes emotion and puts things into context. In this report, we’ll make sense of the China mining bans, cover the continued growth of NFTs, outline the developments of layer 1 & 2 projects and dive into the third quarter’s historical performance.
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