Bitcoin declined roughly 5% in the past 24 hours as the price broke below the $ 36,000 support. The world’s largest cryptocurrency by market cap is still up about 23% so far this year, although some traders are concerned about the impending one. ”death cross, ‘which could indicate a change from a bullish to a bearish price trend.
The death crossover is defined by a crossover of the 50-day moving average below the 200-day moving average, which could occur over the weekend.
Still, some analysts remain bullish on bitcoin relative to stocks.
“When the tide of stocks one day recedes, we expect bitcoin and gold to be the main beneficiaries,” Mike McGlone, a commodity strategist at Bloomberg Intelligence, wrote in a report on Friday.
S&P 500: 4166.45, -1.31%
Gold $ 1769.37, -0.19%
The 10-year Treasury returned 1.437%, down from 1.52% on Thursday.
The technical backdrop weakens
“The recent stabilization is simply not enough to suggest buying declines,” wrote Mark Newton, founder of Newton Advisors, in an email to CoinDesk.
Related: The left-wing Bitcoin dilemma
Newton’s duty cycle points to continued weakness this year. “For those who are aggressive traders, any 30k breakout should lead to 20-25k and that should be a better area to consider buying dips for a bounce,” Newton wrote.
And for the ether, Newton expects a volatile decline for the next week or two due to the break below previous lows.
Bitcoin has been affected by the current regulatory uncertainty and environmental concerns.
On Thursday, miners in Ya’an, one of the major cryptocurrency mining hubs in China’s Sichuan province, received a inspection notice which required closures.
And on Friday, Wu Blockhcain reported that Alibaba Cloud, China’s largest cloud service provider, made calls to mining and cryptocurrency companies registered in China regarding possible domain name cancellations due to regulatory requirements.
“This has little impact on exchanges, because their servers and registered locations are outside of China, but mining companies may need to make some replacements,” Wu Blockchain tweeted.
Growing institutional demand
Despite regulatory hurdles, institutional demand for crypto remains strong, which could force countries to compete for crypto-related businesses.
For example, on Friday, the Spanish banking giant BBVA will make its cryptocurrency trading and custody service available to private banking clients in Switzerland starting June 21.
BBVA said The reason the service will only be available to customers in Switzerland is due to clear regulations and the widespread adoption of digital assets in the region.
Crypto correlations increase
The graph below shows that the month-long correlation between the top 10 crypto assets by market capitalization has risen sharply since mid-May, according to data from Skew. This reflects extensive selling pressure stemming from May’s strong correction in cryptocurrencies.
Bitcoin ESG update
A month after Tesla CEO Elon Musk tweeted his concerns about possible environmental damage from bitcoin mining, some industry players are rushing to reply. They are looking for ways to address environmental, social, and governance (ESG) issues that could deter large institutional investors from adopting Bitcoin.
Crypto.com, an app for trading cryptocurrencies, set a goal for the next 18 months to become “carbon negative.” Asset management company One River Digital applied for a bitcoin exchange-traded fund (ETF) that would be carbon neutral. Digital asset investment firm CoinShares made a strategic investment in Viridi Funds and said it would advise the manager on “the first ESG crypto mining product in the US.” Wrapped, a collaboration between tokenization specialist Tokensoft and digital asset custodian Anchorage, announced a “neutral bitcoin-backed carbon-asset” called Eco BTC (eBTC).
“They’re doing it out of a sense of survival,” said John Reed Stark, former head of the Internet Enforcement Office at the US Securities and Exchange Commission, who now works as a consultant.
The Swiss Federal Council has enacted a new ordinance to regulate decentralized finance (DeFi). The ordinance creates a license for distributed ledger technology (DLT) business facilities, which will take effect on August 1. “This will enable innovative commercial DLT installations and increase legal certainty in the event of bankruptcy,” the council said in the press. launch. The news came after Mark Cuban, who said he lost money from the falling price of the DeFi TITAN token, asked regulators to determine what constitutes a “stable coin.”
Grayscale Crypto Asset Manager saying It is considering 13 more tokens, most of which are DeFi related, for potential development into investment products. Tokens include 1-inch, Bancor, Curve, Polygon, and 0x, among others.
All digital assets on CoinDesk 20 were lower on Thursday.
Notable losers at 21:00 UTC (4:00 pm ET):
nucypher (NU) -17.42%
aave (AAVE) – 11.76%
the graph (TRB) -10.58%