Not much you can say about that. If only he knew the truth.
On-chain activity remains subdued, and even the DeFi space's transaction rates have slowed. I mentioned last week that this could be a long summer for the Bitcoin bulls. With the stream of FUD continuing, the chances of activity levels rising in the short-term are low. What is interesting is the behavior of market participants: The only thing increasing is accumulation rates.
Long-term holders continue to buy the dip and hodl.
In fact, yesterday was the largest Bitcoin drain from exchanges since November 2020.
With prices heading south, we would normally expect exchange inflows to increase as participants send Bitcoin from storage to exchanges to sell.
Zooming out, we can see that those with a steady hand are actually using the FUD and price declines to accumulate Bitcoin. When the market is full of bad noise and price slides, it's easy to forget there isn't enough Bitcoin to go round.
As soon as the market bounces, the stories of 'limited supply' will be back front and center. Until then, be careful out there!
Bitcoin has moved to the lower bounds of the trading range, with downward pressure taking the market through support at $33,600. We now sit just above the $32,190 level, with a nervousness building among traders.
A break here will see BTC move down and test the $30,000 mark. This will be a key moment: Failure to hold this level is likely to create a series of liquidations and increase the fear levels as the bears look to push the market below $29,800.
Should we hold above $32,190, we will likely rally back to previous support, turned resistance at $35,000 and $36,400. Should this be the case, the range trading will continue and each subsequent move higher or lower is likely to be accompanied by less fan fare. As this is the first test of the lower end of the range that's been in place for over 2 weeks, the market is quite rightly nervous.
Subscribe to the full report here.
With investors looking at the next Fed monetary policy meeting, equity indexes rose yesterday. The S&P reached new records while the Nasdaq closed within 20bps of the all-time high.
Welcome to the Weekender: Your weekly round up of the most viewed stories of the week, as voted by you, our readers. This week has seen the negative news flow replaced with tales of adoption, it appears the central bankers, country leaders, and the financial institutions have all agreed: Digital finance is here to stay.
Yesterday, the US reported CPI data—an index calculating the price increase or decrease of a basket of goods. The number is higher than expected and indicates inflation is picking up.