After a positive tone to trade on Monday despite the thin volumes given the absence US market participants due to Independence Day celebrations, cryptocurrency prices are coming under modest selling pressure on Tuesday ahead of the US open. Bitcoin pushed as high as the…
$20,400s during Asia Pacific trade, but has since fallen back the just under $19,900 its 21-Day Moving Average (at $20,370) offers resistance.
The world’s largest cryptocurrency currently trades with losses of about 1.7% on Tuesday. But Bitcoin is still up nearly 4.0% versus 24 hours ago, as per CoinMarketCap. The story is pretty similar in the altcoin space. Ethereum has pulled back from earlier session highs in the $1,170s to the $1,130s.
But the world’s second-largest cryptocurrency by market capitalization continues to trade just above its 21DMA and with gains in the last 24 hours of about 8%. Binance’s BNB, Cardano’s ADA, Solana’s SOL and Dogecoin are all up between 2-6% over same time period. Polygon’s MATIC is the best performer in the last 24 hours, with gains of 12%.
In terms of macro news, the most notable recent development was much stronger than expected Chinese Services PMI data for June released overnight that has (somewhat) eased concerns about a growth slowdown in the world’s second-largest economy. This didn’t really impact crypto much, which typically focuses more on US economic trends.
Likewise, a widely expected 50 bps rate hike from the Australian central bank didn’t impact crypto much either, as it comes against the backdrop of an accelerated pace of tightening from many other major central banks like the Fed, ECB, BoE and BoC.
In terms of US macro events that could move crypto, there is little to get excited about on the calendar this Tuesday, meaning trade might remains somewhat rangebound. Things get more interesting on Wednesday with the release of ISM Services PMI data for June and then the minutes from the Fed’s June policy meeting, which should come across very hawkish.
Bitcoin Tourists Almost Completely Purged – Glassnode
According to on-chain data analytics firm Glassnode, “the Bitcoin network is approaching a state where almost all speculative entities and market tourists have been completely purged from the asset”. To back up this claim, the firm cites data showing a decline in the number of daily active addresses (and entities), as well as a fall in daily transactions.
However, the number of addresses with a non-zero Bitcoin balance has continued to advance to fresh all-time highs and recently surpassed 42.3 million, Glassnode pointed out. In past Bitcoin bear markets, there has typically been a fall in the number of wallets with a non-zero. Glassnode said this indicates as “increasing level of resolve amongst the average Bitcoin participant.”
When assessing whether a bear market has run its course, investors often focus on metrics that indicate capitulation. Once the weak hands in a market have been wrung out, the stage is set for a rebound, or so conventional investment wisdom says. Thus, some might interpret Glassnode’s claim that Bitcoin tourists (the weak hands) have been almost completely purged as an indicator that the bottom might be in.
EU Lawmakers Push for AML Laws for NFT Trading Platforms
Non-fungible token (NFT) trading platforms should be forced to comply with the EU’s proposed anti-money laundering (AML) laws, various members of the EU parliament proposed on Monday. Just last week, lawmakers from across the bloc agreed on the outline of a new regulatory framework for crypto companies called Markets in Crypto Assets Regulation (MiCA).
MiCA will impose a variety of identity checks on transactions as part of a new AML push. Thus, the implication of this proposal is that NFT trading platforms such as OpenSea (currently the world’s largest) might be pushed into carrying out new identity checks on customers and tracking “suspicious” transactions, similar to what banks do.
Three Arrows Capital Holds Blue Chip NFTs
Insolvent crypto hedge fund Three Arrows Capital (3AC) which at one point earlier this year held as much as $10 billion in assets under management reportedly owns a collection of blue-chip NFTs worth over $7.0 million, according to analysts at 21Shares.
According to the analysts who cite publically available data from…
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