Bitcoin Newsletter Week 25 2024

Weekly update on all things Bitcoin

June 25, 2024

TL;DR

  • BTC is down

  • Bitcoin dominance is down

  • Bitcoin ETFs Hit by $600M Outflows Amid Hawkish Fed

  • Hashdex Files SEC Application for Bitcoin and Ether ETF

  • VanEck to Launch Australia's First Bitcoin ETF on ASX

  • Winklevoss Twins Donate $2M in Bitcoin to Trump

  • Lava Launches Bitcoin Exchange and Stable Payments

  • Standard Chartered Launches Bitcoin Trading Desk

  • CleanSpark Buys Five Mining Facilities in Georgia

  • Bitcoin Miners' Reserves Hit Record Low

  • Auradine and Voltus Enhance Bitcoin Mining Efficiency

Grab Your 7 Day Free Trial

You're invited to upgrade your subscription to our Premium membership with a 7 day FREE trial!

No catches. No strings attached. Just pure crypto alpha to get you ahead!
Upgrade now for:

Ad-Free Experience 🚫👀
Deep Bitcoin Alpha 📰🔥
New Bitcoin Jobs 💸📈

All for just $15/month after the trial.
Don't miss out! Get your FREE trial today 👇

Bitcoin Price

Crypto is down slightly this week, with BTC being down 3.0% and ETH Up 0.5%:

Bitcoin dominance has been decreasing over the week, starting at around 51.44%, topping at 52.69% and ending the week around 51.8%. Capital often starts to flow into ETH and other altcoins as the price is increasing for more risk-on assets as well, causing a lower Bitcoin dominance as we have started to see over the course of multiple weeks.

It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.

The cryptocurrency market is experiencing mixed movements as major digital assets like Bitcoin and Ethereum navigate through significant resistance and support levels. Investor sentiment is influenced by broader economic factors and ongoing regulatory developments, particularly surrounding cryptocurrency ETFs.

Bitcoin Analysis: Bitcoin is trading just below the $67,000 level, a critical resistance point. A successful breakthrough above this level could open the path to $72,000. However, if Bitcoin fails to maintain support at $64,000, it may face a decline towards the $60,000 mark. The recent 92% gain in Bitcoin's value, spurred by the announcement of a Bitcoin ETF, highlights its volatility. The overall market sentiment is cautious, with investors closely monitoring global central bank policies and their potential impact on Bitcoin.

Expected Trading Ranges:

  • Bitcoin: Expected to fluctuate between $64,000 and $67,000, with potential upside to $72,000 if resistance is broken and a downside risk to $60,000 if support fails.

Market Outlook:

Bitcoin is currently trading below the key resistance level of $67,000, with solid support at $64,000. The market outlook is cautiously optimistic, driven by the potential approval of Bitcoin ETFs and broader economic policies. A successful breakout above $67,000 could see Bitcoin rise to $72,000, while a failure to maintain support at $64,000 might lead to a decline towards $60,000. Investors should stay informed about regulatory developments and macroeconomic factors, which will play a crucial role in Bitcoin's near-term volatility and price direction.

BTC/ETH ratio has seen a slight decrease.

Over the past 6 days, the BTC to ETH conversion rate has experienced fluctuations. Starting at 18.95 ETH on June 17, 2024, the rate decreased to 18.73 ETH on June 18, then further to 18.29 ETH on June 19. It rebounded slightly to 18.45 ETH on June 20, before decreasing again to 18.22 ETH on June 21. Most recently, as of June 22, 2024, the rate stands at 18.35 ETH.

Financial News

Bitcoin ETFs saw over $600 million in outflows recently, driven by the Federal Reserve's decision to maintain interest rates. On June 17 alone, net outflows reached $145.9 million, with Fidelity’s FBTC ETF losing $92 million and Ark Invest’s ARKB $50 million.

These outflows ended a four-week streak of net inflows totaling about $4 billion. The Fed's hawkish stance, influenced by a strong jobs market and persistent inflation, dampened investor sentiment and contributed to the broader market decline.

Hashdex has filed a proposal with the SEC for a combined spot Bitcoin (BTC) and Ether (ETH) exchange-traded fund (ETF) on Nasdaq. The ETF aims to mirror the market capitalization-weighted proportions of 70.54% BTC and 29.46% ETH as of May 27, tracking the Nasdaq Crypto US Settlement Price Index passively rather than attempting to outperform it.

The ETF's strategy is designed to adapt if additional cryptocurrencies become eligible for inclusion based on specific criteria, such as being listed on U.S.-regulated digital asset or derivatives platforms. Custodianship for BTC and ETH assets will be managed by Coinbase and BitGo, ensuring the security of holdings through segregated accounts for individual shareholders.

VanEck is set to launch Australia’s first spot Bitcoin ETF on the ASX on June 20, 2024, offering investors direct exposure to actual bitcoin. This ETF, unlike derivative-based digital-asset ETFs, will hold actual bitcoin, providing a secure and regulated investment avenue.

Arian Neiron, CEO of VanEck Asia Pacific, highlighted the increasing demand for Bitcoin access via a listed ASX vehicle. He emphasized that this launch marks a significant milestone, making Bitcoin investments more accessible and regulated for Australian investors.

Adoption News

Tyler and Cameron Winklevoss, co-founders of Gemini, donated over $2 million in Bitcoin to former President Donald Trump's campaign. They announced their contributions on social media, aiming to counter the Biden Administration's regulatory approach towards cryptocurrency, which they view as hostile.

Tyler Winklevoss criticized the administration for allegedly using government agencies to stifle crypto innovation and target businesses, citing "Operation Choke Point 2.0." He argued that these actions harm the American economy and stifle innovation in the crypto sector.

After a year of development, Lava is unveiling its first two financial products—Lava Free Pay and Lava Exchange. Lava CEO Shezhan Maredia discussed with Bitcoin Magazine how these new tools aim to revolutionize digital dollar handling and Bitcoin access, enhancing the mobile self-custodial experience.

Lava Free Pay promises to streamline global payments by eliminating the need for intermediary steps and fees, such as those associated with converting to volatile currencies. This service offers seamless stablecoin integration within Bitcoin wallets, enabling free, instant, and global transactions. Lava’s innovation aims to make digital dollars more practical and accessible for everyday use, simplifying the user experience significantly.

Standard Chartered, a global banking giant, is set to launch a Bitcoin and ether spot trading desk, becoming one of the first major banks to directly offer such services. The new London-based trading desk, integrated within the bank's FX trading unit, is poised to meet increasing institutional demand for cryptocurrency trading.

Having maintained a positive stance on Bitcoin for years, Standard Chartered has worked closely with regulators to facilitate trading opportunities for its institutional clients. The bank's existing involvement in crypto includes offering custody services through Zodia Custody and investment in Zodia Markets, which caters to institutional Bitcoin and crypto trading.

Mining News

CleanSpark, a Bitcoin mining company utilizing clean energy, announced the acquisition of five mining facilities in Georgia through a $25.8-million deal. The acquisition, expected to close immediately, will add a combined processing power exceeding 3.7 exahashes per second (EH/s). The facilities vary in capacity, ranging from 8 to 15 megawatts (MW) of power, totaling 60 MW. CleanSpark anticipates its total hashrate will surpass 20 EH/s by the end of June.

The newly acquired sites come with interruptible-load power purchase agreements (PPAs), enabling them to offer load-balancing services to the local electrical grid. CleanSpark CEO Zach Bradford highlighted the positive impact of the acquisition on both the company and regional energy infrastructure, emphasizing the synergy between Bitcoin mining operations and local power resources.

Bitcoin miners' reserves have fallen to a historic low of 1.90 million BTC as of June 19, 2024, down from 1.95 million BTC at the start of the year. This marks the lowest level since February 2010 and has generated significant discussion among market analysts and investors. The decline is attributed to the recent halving event on April 20, 2024, which reduced mining rewards from 6.25 BTC to 3.125 BTC, pressuring miners to sell more of their reserves to maintain profitability.

Lucas Outumuro, head of research at IntoTheBlock, suggests that the halving event has squeezed miners' profit margins, leading them to liquidate more of their holdings. This trend of decreasing reserves could impact market dynamics, potentially influencing Bitcoin's supply and price movements in the near future.

Auradine, a Silicon Valley-based Bitcoin miner manufacturer, has formed strategic partnerships with energy companies CPower and Voltus to enhance Bitcoin mining efficiency and sustainability. Leveraging Auradine's innovative EnergyTune technology, the collaboration aims to optimize energy consumption, boosting mining productivity while promoting grid stability.

Auradine’s CEO, Rajiv Khemani, highlighted the alignment of missions between Auradine, CPower, and Voltus in pursuing sustainable energy management. Central to this partnership is Auradine’s patent-pending EnergyTune technology, which allows Bitcoin miners to adjust energy consumption in real-time, dynamically responding to grid demands.

Thanks for reading our newsletter!
Like, Subscribe and Share to support our work.