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Crypto News- Bitcoin’s Uptrend Pauses as Dollar Strengthens

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Crypto News- Bitcoin'S Uptrend Pauses As Dollar Strengthens

Crypto News- Dollar Rally Halts Bitcoin’s Recovery Momentum

Crypto News- Bitcoin’s recovery from Monday’s low below $59,000 hit a roadblock as buyers struggled to maintain momentum above $61,000. Ether and the broader crypto market, represented by the CoinDesk 20 (CD20) Index, also experienced sluggish trading during European hours. This pause in recovery aligns with the dollar index (DXY) reaching 106, its highest level since May 2, dampening investor risk appetite ahead of key U.S. economic data, including first-quarter GDP, durable goods for May, and a weekly jobless report scheduled for 12:30 UTC (08:30 EST).

The market may be most sensitive to the weekly jobless claims, given the recent increase and a growing sense, articulated by San Francisco Fed President Daly, that the labor market appears to be at an inflection point, Marc Chandler, managing director and chief market strategist at Bannockburn Global Forex, said in a market update.

Crypto traders are also closely watching the Biden-Trump presidential debate set for 21:00 EST, seeking clues on the potential impact of the November election on the industry. Meanwhile, there’s a growing consensus that demand for U.S.-based spot ether ETFs may not match the enthusiasm seen for bitcoin ETFs. On Wednesday, Galaxy Research projected that once approved, these ETFs could see $1 billion of net inflows monthly. Analyst Charles Yu wrote, We expect the net inflows into ETH ETFs to be 20-50% of the net inflows into BTC ETFs over the first five months, with 30% as our target, implying $1 billion/month of net inflows.

Bitcoin Recovery Hits a Snag with Dollar’s Ascent

Galaxy also warned that demand might be limited due to the lack of staking rewards, echoing sentiments from Bernstein and JPMorgan, and noted that outflows from the Grayscale Ethereum Trust (ETHE) could dampen overall inflows. According to a Reuters report, the SEC could approve these funds as soon as July 4, and options traders foresee renewed bullish momentum in ether following that date.

In other news, Bitcoin miner Marathon Digital (MARA) has expanded its operations to include multiple cryptocurrencies to diversify its revenue stream. The recent Bitcoin halving, which reduced mining rewards by 50%, has intensified competition within the industry. Since September 2023, Marathon has mined 93 million kaspa (KAS) tokens, valued at approximately $15 million, and brought 30 petahash worth of machines online for KAS mining, with an additional 30 petahash expected to start by the third quarter. By mining Kaspa, we are able to create a stream of revenue that is diversified from Bitcoin, and that is directly tied to our core competencies in digital asset compute, said Adam Swick, Marathon’s chief growth officer, in a statement.

trending crypto chart today

Crypto News- Bitcoin'S Uptrend Pauses As Dollar Strengthens
ETH Options volume by strike price. (Kaiko)
  • The chart shows recent activity in ether December expiry options at various strike price levels.
  • The concentration of volumes in higher strike call options shows a bullish bias.
  • “This could be due to the improving regulatory outlook around ETH over the past month. Last week, the SEC dropped its case against Consensys regarding ETH’s potential status as a security,” Kaiko said.
  • Source: Kaiko

– Omkar Godbole

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Crypto News- Bitcoin's Uptrend Pauses As Dollar Strengthens

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