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🚨Breaking News🚨
$WCT
BTC's Love To Be At $100K:
• Last week, a cryptocurrency trader opined that the best advertisement for any asset is its price, echoing an observation which is quite close to legendary investor George Soros' concept of reflexivity. Soros had described how market opinion and prices feed back into each other – higher prices bring in more buyers who push prices up further, often way beyond what fundamentals warrant.
• Here, bitcoin's strength, characterized by prices remaining significantly above $100,000 during the Iran-Israel war and the U.S. drone attack on Iran, is its greatest selling point.
• Steadiness reflects underlying strength, which can be a confidence booster to holders and a magnet to new buyers, thus potentially pushing prices to a new leg higher. Further, temporary price drops below $100,000 experienced in recent 48 hours saw investors coming in with bids, disclosing the "buy the dip mentality."
• "We are observing exchange outflows, so it's possible that individuals, whether retail or institutions, are taking the dip. Typically, with war and other non-core factors that disrupt everything worldwide, there usually are huge short-term dips that bounce later depending on how harsh and how the news is being communicated. Up until now, I'd say we observe the situation unfolding pretty much the same here," Nicolai Soendergaard, a research analyst at Nansen, said in an email to CoinDesk on Monday.
• In the meantime, figures monitored by Glassnode indicate weak hands started selling on June 10, with conviction buyers turning to bargain hunting.
• "Since June 10, BTC investors that fall under the category of Loss Sellers increased by 29% (from $74K to $95.6K), indicating increased pressure on weak hands. But Conviction Buyers also went up, indicating sentiment isn't crumbling. Some are cutting losses - others are actively reducing their cost basis," Glassnode wrote on X.
Trump appears to have discovered his doves:
• Liquidity injections, in the form of Fed rate reductions and other actions, generally suit stocks and cryptocurrencies well. Some Federal Reserve officials are coming around to the notion of a possible rate cut next July, which is counter to Chairman Jerome Powell's data-dependent approach.
• "Trump appears to have located his doves," ForexLive's Chief Currency Analyst and Managing Editor Adam Button noted on Monday when Federal Reserve Governor Michelle Bowman, a hawk, indicated the central bank should lower rates in July.
• Hawks are policymakers who favor tighter monetary policy and higher interest rates to curb inflation. Doves are policymakers who favor lower interest rates to spur growth.
• Bowman indicated tariffs' influence on inflation can be higher and longer-lasting than anticipated, noting she would favor cutting the interest rate in July, provided that inflation pressures are held in check.
• The same opinion was expressed by Fed Governor Christopher Waller on Friday, who advocated a rate reduction in July.
• "Now, perhaps it's purely coincidence that two previous hawks who also happen to be Republicans are suddenly doves, but it's beginning to resemble a MAGA coup of the Fed. And if there's one thing [President Donald] Trump has ever been consistent about throughout his entire career (and it may only be one solitary thing), it's that he prefers low interest rates," Button wrote.
• Chairman Powell's semiannual monetary policy testimony to Congress is scheduled for Tuesday. Powell will probably reaffirm the Fed's independence and data-dependent position and possibly get questioned by Republicans on maintaining rates high.
Oil slide:
• Never have the masses been so mistaken when it comes to crude oil. On Sunday, the general view was that the U.S. strikes against Iran and Tehran's possible shutting down of the Strait of Hormuz would push up oil prices.
• But Monday, oil prices on both sides of the Atlantic plummeted. The fall is welcome news to central banks worried about the second-order effects of the late-week spike in oil prices, and those looking for rate cuts.
• The second-order effects generally comprise higher transport costs, higher costs for goods that depend upon oil-products, and possible wages, all concurring in a general rise in inflation.
• "So much for the dread of second order effects of Oil that Central Bankers claim. Down 6.5% today and 15.41% YoY.that's deflation," James E. Thorne, Wellington Atlus chief market strategist, posted on X.
Bullish technical configuration:
• Momentum indicators – prominent moving averages – are again positioned bullishly.
• The 100-day simple moving average (SMA) has recently crossed over the 200-day SMA, weeks following the 50- and 200-day SMAs giving a bullish golden crossover.
• The result is that the three major-tracked averages are aligned one on top of another in a traditional upward-sloping bullish momentum setup. The same setup appeared in November last year and was maintained through the entire rally from $70,000 to $100,000.
BTC's Love To Be At $100K:
• Last week, a cryptocurrency trader opined that the best advertisement for any asset is its price, echoing an observation which is quite close to legendary investor George Soros' concept of reflexivity. Soros had described how market opinion and prices feed back into each other – higher prices bring in more buyers who push prices up further, often way beyond what fundamentals warrant.
• Here, bitcoin's strength, characterized by prices remaining significantly above $100,000 during the Iran-Israel war and the U.S. drone attack on Iran, is its greatest selling point.
• Steadiness reflects underlying strength, which can be a confidence booster to holders and a magnet to new buyers, thus potentially pushing prices to a new leg higher. Further, temporary price drops below $100,000 experienced in recent 48 hours saw investors coming in with bids, disclosing the "buy the dip mentality."
• "We are observing exchange outflows, so it's possible that individuals, whether retail or institutions, are taking the dip. Typically, with war and other non-core factors that disrupt everything worldwide, there usually are huge short-term dips that bounce later depending on how harsh and how the news is being communicated. Up until now, I'd say we observe the situation unfolding pretty much the same here," Nicolai Soendergaard, a research analyst at Nansen, said in an email to CoinDesk on Monday.
• In the meantime, figures monitored by Glassnode indicate weak hands started selling on June 10, with conviction buyers turning to bargain hunting.
• "Since June 10, BTC investors that fall under the category of Loss Sellers increased by 29% (from $74K to $95.6K), indicating increased pressure on weak hands. But Conviction Buyers also went up, indicating sentiment isn't crumbling. Some are cutting losses - others are actively reducing their cost basis," Glassnode wrote on X.
Trump appears to have discovered his doves:
• Liquidity injections, in the form of Fed rate reductions and other actions, generally suit stocks and cryptocurrencies well. Some Federal Reserve officials are coming around to the notion of a possible rate cut next July, which is counter to Chairman Jerome Powell's data-dependent approach.
• "Trump appears to have located his doves," ForexLive's Chief Currency Analyst and Managing Editor Adam Button noted on Monday when Federal Reserve Governor Michelle Bowman, a hawk, indicated the central bank should lower rates in July.
• Hawks are policymakers who favor tighter monetary policy and higher interest rates to curb inflation. Doves are policymakers who favor lower interest rates to spur growth.
• Bowman indicated tariffs' influence on inflation can be higher and longer-lasting than anticipated, noting she would favor cutting the interest rate in July, provided that inflation pressures are held in check.
• The same opinion was expressed by Fed Governor Christopher Waller on Friday, who advocated a rate reduction in July.
• "Now, perhaps it's purely coincidence that two previous hawks who also happen to be Republicans are suddenly doves, but it's beginning to resemble a MAGA coup of the Fed. And if there's one thing [President Donald] Trump has ever been consistent about throughout his entire career (and it may only be one solitary thing), it's that he prefers low interest rates," Button wrote.
• Chairman Powell's semiannual monetary policy testimony to Congress is scheduled for Tuesday. Powell will probably reaffirm the Fed's independence and data-dependent position and possibly get questioned by Republicans on maintaining rates high.
Oil slide:
• Never have the masses been so mistaken when it comes to crude oil. On Sunday, the general view was that the U.S. strikes against Iran and Tehran's possible shutting down of the Strait of Hormuz would push up oil prices.
• But Monday, oil prices on both sides of the Atlantic plummeted. The fall is welcome news to central banks worried about the second-order effects of the late-week spike in oil prices, and those looking for rate cuts.
• The second-order effects generally comprise higher transport costs, higher costs for goods that depend upon oil-products, and possible wages, all concurring in a general rise in inflation.
• "So much for the dread of second order effects of Oil that Central Bankers claim. Down 6.5% today and 15.41% YoY.that's deflation," James E. Thorne, Wellington Atlus chief market strategist, posted on X.
Bullish technical configuration:
• Momentum indicators – prominent moving averages – are again positioned bullishly.
• The 100-day simple moving average (SMA) has recently crossed over the 200-day SMA, weeks following the 50- and 200-day SMAs giving a bullish golden crossover.
• The result is that the three major-tracked averages are aligned one on top of another in a traditional upward-sloping bullish momentum setup. The same setup appeared in November last year and was maintained through the entire rally from $70,000 to $100,000.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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