- Let’s run through the macro data that came out this week
- And see what news influenced the BTC charts
Every Monday we prepare an economic calendar for readers. It helps you track investor sentiment and predict your actions. Now let’s summarize. Let’s look at the economic week and the market in general perspective.
What’s happening with bitcoin
The major cryptocurrency gained 2.45% over the week. It continues to maintain its dominance above 50% after a number of traditional financial institutions expressed interest in opening their bitcoin-ETF.
This growth has not been prevented by new fears after data from CryptoQuant. They reported that miners sent $1 billion worth of bitcoins to cryptocurrency exchanges in two weeks. There were fears that such a number of coins would increase the pressure of sellers. But according to analysts, miners need bitcoins to support futures trading – because the lion’s share has gone to derivatives exchanges.
A number of other important processes are happening in parallel in the world. They affected the market in one way or another.
The Monday. Pessimism from the EU
On Monday, ECB President Christine Lagarde spoke. She said that inflation in the Eurozone remains too high. This is a clear hint of further rate hikes this year.
June 26 also saw the release of data from the Dallas Fed’s June manufacturing index. It showed a decrease from -29.1 to -23.2. In response, Wall Street closed lower, with the Nasdaq down 1.16% and Treasury yields also down.”
Bitcoin was trading sideways Monday at just above $30,000.
By contrast, Bitcoin Cash began a sharp climb.. On June 20, the rate of BCH was about $108. On Monday, it went up to $220. And by Friday, the rate rose to $320.
The rise coincided with the launch of the institutional exchange EDX Markets from Citadel, Fidelity and Schwab. Only BTC, ETH, LTC and BCH tokens are listed on it.
Another possible reason for the growth of Bitcoin Cash was the listing of the pair BCH/KRW on the Korean exchange Upbit.
Tuesday. U.S. economy revives
The U.S. on Tuesday presented data on durable goods orders. They jumped 1.7% in May, though experts had expected a 1% decline.
The report on new home sales was also positive.. May sales rose 12.2% to an annual rate of 763,000, beating the market consensus of 675,000.
The Richmond Fed manufacturing index also rebounded from -15 to -7 (June data).. And consumer confidence in the U.S. (Consumer Confidence Index) reached its highest level in 17 months. The numbers led to higher U.S. Treasury yields.
In the meantime, official data from China are making investors nervous. Industrial profits fell 18.8% in the first 5 months of this year.
Chinese Premier Li Qiang said Tuesday at the Summer Forum in Davos that the country is still on track to reach its annual growth target of about 5%.
Commenting on the macro data, President Joe Biden said that “the U.S. economy is now so strong that I do not expect a recession.”. The Democratic leader added that China’s problems are enormous. Now the U.S. President’s Office is considering new restrictions on AI chip exports to China. They fear that such technology in the hands of U.S. competitors could harm national security.
On Tuesday, bitcoin was moving in a tight price range at around $30,606.
Wednesday. Bank stress test and surprise from MicroStrategy
The Fed on Wednesday unveiled the results of its long-awaited stress test of the banking system. After the recent crisis, many were waiting for the results to check on the state of financial institutions.
So the Fed said the largest U.S. banks are well prepared and will be able to survive a severe recession if it comes. In the worst-case scenario, major banks would lose $541 billion in capital. At the same time, key banks are resilient to rising rates and can continue to lend to customers even in the face of market shock.
The news from analyst firm MicroStrategy had the biggest impact on the cryptocurrency market. It reported that between April 29 and June 27, the company and its subsidiaries purchased approximately 12,333 BTC for $347 million. Purchases were made at an average price of $28,136 per bitcoin. The deal boosted MicroStrategy’s total holdings to 152,333 BTC.
In the meantime, ARK Invest’s investment management fund filed amendments to its April bid for a spot bitcoin-ETF on Wednesday. In the new edition, ARK Invest and its partner 21Shares will sign a commitment to jointly monitor crypto exchanges. This will reduce the risk of market manipulation.
Analogous monitoring is planned to be implemented by BlackRock if they manage to get approval for a bitcoin-ETF.
After the news of MicroStrategy’s purchase, bitcoin lost 2% in value.. But it managed to stay comfortably above the $30,000 mark.
Thursday. U.S. GDP growth, German inflation
The U.S. yesterday presented GDP data that was much higher than forecast. Gross domestic product grew at an annualized rate of 2% in the first quarter, compared with a forecast of 1.3%.
The number of initial jobless claims in the U.S. fell by 26,000 to 239,000 for the week. It was the biggest decline since October 2021.
The German Destatis reported Thursday that Germany’s annual consumer price index (CPI) rose to 6.4% in June from 6.1% in May. This weakened the euro’s position against the dollar and other fiat currencies.
By yesterday, Bitcoin was up about 1% to $30,700. Ether was trading at $1849. The cryptocurrency market resiliently survived statements by Joe Biden, who promised to “close tax loopholes for crypto traders.” And also a string of negative news from Binance. The largest cryptocurrency exchange will stop supporting the euro from September 25 due to problems with its partner Paysafe Payment. The search for a new banking provider may take a long time. Also, British digital bank Nomo Bank stopped working with Binance. And the German regulator rejected the crypto-exchange’s application for a license in the country.
Friday. End of Half Year – Risk of Volatility
China presented disappointing macro data for the second time this week. The country’s manufacturing activity declined for the third straight month, the National Bureau of Statistics reported Friday. The official manufacturing purchasing managers’ index for the month was 49.0%. Below 50 indicates a recession.
Ahead of the weekend, market participants will be closely watching the June Eurozone inflation data and the U.S. Personal Consumption Price Index (PCE).. Since this Friday will be the last trading day of June and the second quarter, a late-day position correction could increase volatility and cause sharp swings in stocks and cryptocurrencies.
As of this writing, Bitcoin is up 1% to $30,900.. Ethereum has added 1.5% and is worth $1,891.06. Cardano and Solana coins showed the highest growth out of the top 10. The total capitalization of the cryptocurrency market rose 1.89% to $1.19 trillion and the market volume increased 31.82% to $39.73 billion.</nbsp;
The growth of the crypto market was facilitated by Fidelity Investments, which officially applied to open a spot bitcoin ETF.
Despite the steady uptrend, the price of bitcoin remains well below the record level of $70,000 reached at the end of 2021.</nbsp;
The trading week ends there. Don’t miss our new economic calendar on Monday. Also, don’t forget to follow the latest news on our website. Have a great weekend, everyone!