Pa Simon Peters, Crypto Asset Analyst at trading and investment platform eToro.
Bitcoin experienced a wave of selling last week, which resulted in a 5% drop. The trend continued this week, with the price dipping below the $60,000 level this Monday before a small bounce. Bitcoin is currently trading at $60,700.
Bitcoin has been stuck in a trading range between $60,000 and $72,000 since hitting an all-time high in March following the approval of the U.S. spot price ETF. Notably, volatility or sideways movement in bitcoin prices is a typical behavior after a shock half (reduction in block reward mined) as the market and miners adjust to the lower block reward, however, there is some optimism for the coming months.
After years of high interest rates, central banks around the world are starting to lower interest rates and ease financial conditions, which has generally been favorable to cryptocurrency prices.
WHAT TO EXPECT FROM THE WEEK
The focus returns to inflation data this week as the latest US PCE data is due out on Friday.
With CPI and producer price index data coming in below forecasts earlier this month, the PCE report could also increase the likelihood that the Fed’s first rate cut will come earlier this year than expected.
EXCELLENT NEWS
Microstrategy continues its Bitcoin accumulation strategy
Microstrategy announced last Thursday that it had acquired an additional 11,931 bitcoins for approximately $786 million, using proceeds from the convertible notes and excess cash.
The average purchase price was about $65,883 per bitcoin.As of June 20th, Microstrategy owns 226,331 bitcoins, purchased for about $8.33 billion at an average price of $36,798 per bitcoin, now owns more than 1.1% of the current bitcoin turnover the largest number of bitcoins held by a public company.
The company entered the Bitcoin market in August 2020 with an initial investment of $250 million for 21,454 Bitcoins. Since then, the company has steadily increased its holdings by building a treasury reserve in bitcoins, a move that has inspired other public companies to do the same.
3iQ seeks first Solana ETF in North America
Canadian investment fund manager 3iQ has filed a preliminary prospectus for the Solana ETF under the ticker QSOL, seeking to become the first Solana exchange-traded product to be listed in North America.
If approved, QSOL will go public on the Toronto Stock Exchange, offering investors access to SOL’s pricing and include performance bids for additional income. 3iQ will act as investment manager and portfolio manager of QSOL.
Canaccord Genuity is the agent for the offering, with Tetra Trust and Coinbase Custody Trust Company acting as custodians.
Coinbase Custody’s institutional infrastructure will also be used to support the SOL rate. Considered as Ethereum’s leading competitor, the Solana network has seen impressive growth over the past year, and as such, SOL has been one of the best performers in terms of price performance, increasing by 700% year-over-year.
If we see US SEC approval of an Ethereum spot ETF this summer, solana is considered a top contender for the next US-listed spot ETF.
Standard Chartered is creating a trading post for Bitcoin and Ethereum
According to Bloomberg, Standard Chartered Plc is creating a trading desk for bitcoin and ethereum, positioning itself as one of the first major banks to offer direct spot services, and will be part of the bank’s FX trading arm and will operate from London. The news further underscores institutional demand for crypto asset trading.