Bitcoin and Crypto Market Updates (June 19th)

Going to keep it pretty clean this week…

BTC – We have this falling wedge setup, if we can break above the zone highlighted then I think we could see 35k levels. We need to be patient and wait for the move because legacy markets are well over-extended at this point and any significant drop-off on that side will likely cause BTC to lose the support zone below.

TOTAL3 – Still no deviation from my plan here. Looking to start the altcoin accumulation process on the next leg down to around 200 – 260bn I am however open to allocating about 30% of capital IF we can see a breakout on the above chart for bitcoin.

BTC.D – This is where my alt coin anxiety kicks in a little. We now have DOM on a breakout above the range… so the next target is 52% +. Alts could still run in this environment but it looks like BTC is firmly in the driving seat.

NQ – Perfect tag of the 78 fib retracement, I think this is ready to pull back now. As a bare minimum, I would expect to see a return to 14370. Can Bitcoin hold the line if this happens? That’s what ill be looking for this week.

Sentiment is still at extremes so again, this is an ideal scenario to see a pullback.

BlackRock & Bitcoin ETF

BlackRock, a $9 trillion asset manager, has filed for the launch of an iShares Bitcoin Trust, potentially signalling a path for the approval of a spot Bitcoin ETF. While the SEC has been skeptical of such ETFs due to concerns of fraud and manipulation in the underlying spot market, BlackRock's strong record in getting its products approved and its connection with regulators may give it an advantage. The filing comes when the SEC is cracking down on the crypto industry, with lawsuits against Binance and Coinbase. The approval of a spot bitcoin ETF could provide institutional investors with a regulated way to access bitcoin exposure and boost confidence in the crypto market. However, some industry experts remain cautious and believe that the path to approval may still be challenging.

Hong Kong Urges Major Banks to Embrace Crypto

Hong Kong is urging major banks, including HSBC, Standard Chartered, and Bank of China, to embrace crypto exchanges as clients, signalling its intention to become a thriving crypto hub and rival to Singapore. In a recent meeting, the Hong Kong Monetary Authority (HKMA), the city's banking regulator, raised questions about banks' hesitancy in accepting crypto exchanges as clients. The HKMA advised banks that due diligence on prospective customers should not create excessive burdens and encouraged them to overcome their fears. Hong Kong's initiatives to facilitate crypto expansion, along with companies like Gate Group and Huobi planning to establish operations in the region, attract crypto players and position the city as an enticing hub for crypto operations.

Binance winding down EU operations

Binance is winding down operations in the Netherlands and Cyprus, citing regulatory challenges. The exchange was unable to secure registration as a virtual asset service provider in certain EU countries, leading to its decision to exit the Netherlands. Customers in the Netherlands received notifications about the disabling of crypto deposits and the closure of various services. Meanwhile, Binance's Cyprus unit applied to be removed from the country's register of crypto asset service providers. Binance stated that it is focusing on fewer regulated entities in the EU and will work towards compliance with the Markets in Crypto Assets (MiCA) regulation. In the US, Binance and its CEO face lawsuits from the Commodities Futures Trading Commission and the Securities and Exchange Commission.

A16z moving to the United Kingdom

Venture capital firm a16z Crypto has announced plans to open its first office outside of the United States in London. The firm believes that clear regulations are crucial for the success of blockchain and crypto projects while protecting consumers. The UK government, led by Prime Minister Rishi Sunak, has expressed support for web3 and aims to create policies that encourage decentralization. The UK's tailored approach to blockchain regulation includes collaboration with the industry, an innovative sandbox approach, and a focus on outcomes and consumer protection. The new London office, led by General Partner Sriram Krishnan, will work to grow the crypto and startup ecosystem in the UK and Europe.

Memecoin GENSLR outperforms the entire crypto market

SEC Chair Gary Gensler has unwittingly become the inspiration for a memecoin called Good Gensler (GENSLR), which has outperformed the overall crypto market. As the SEC sues major exchanges Binance and Coinbase, causing over $100 billion in losses and declines for Bitcoin and Ethereum, Good Gensler has more than doubled in value. The memecoin, fueled by jokes and community solidarity, tells a fictional tale of Good Gary battling his evil counterpart to save the crypto universe. While it may be a playful endeavour, it highlights the united sentiment among crypto enthusiasts against regulatory actions.

Is Artificial intelligence a threat to market participants?

As we have seen in previous publications; Artificial Intelligence (AI) has emerged as a groundbreaking technology, revolutionizing various industries, including finance and trading. While AI offers unprecedented opportunities for automation, efficiency, and data analysis, it also raises concerns regarding the competitive landscape for everyday users in market operations, such as investment and trading. In this article, we will explore the development of AI and delve into the potential risks it poses in terms of user competition.

The Evolution of Artificial Intelligence:

AI has rapidly evolved over the years, driven by advances in machine learning, deep learning, and neural networks. These technologies enable AI systems to analyze vast amounts of data, identify patterns, and make complex decisions with minimal human intervention. In the financial sector, AI-powered algorithms have gained prominence, empowering institutions and sophisticated investors to leverage data-driven strategies for market analysis and execution.

The Impact on Everyday Users:

While AI offers powerful tools and insights, its adoption raises concerns for everyday users who engage in market operations. The widespread availability of AI-powered trading bots and platforms gives rise to a potential competitive disadvantage for individual traders and investors. AI algorithms have the ability to process vast amounts of data in real time, identify trading signals, and execute trades with speed and precision. This puts individual users at risk of being outperformed by AI systems in terms of efficiency and decision-making.

Navigating the Competitive Landscape:

For everyday users, understanding the competitive landscape shaped by AI is crucial. While AI may seem like an overwhelming force, there are strategies users can employ to navigate this new era:

• Education and Skill Development:

Users should focus on enhancing their knowledge and skills in market analysis, risk management, and trading strategies. Developing a deep understanding of market dynamics and trends can help users make informed decisions that complement and augment AI tools.

• Leveraging AI as an Ally:

Rather than perceiving AI as a direct competitor, users can embrace it as a valuable ally. By integrating AI tools into their decision-making process, users can leverage the strengths of both human judgment and AI-driven insights to gain a competitive edge.

• Emphasizing Unique Value Propositions:

Everyday users can differentiate themselves by focusing on areas where human judgment and intuition excel, such as long-term investment strategies, qualitative analysis, and adapting to market sentiment. By emphasizing their unique value propositions, users can carve out their niche in the market and complement AI's capabilities.

Conclusion

The development of AI in the financial industry offers immense potential, but it also introduces new challenges for everyday users in market operations. While the competitive risk is real, users can navigate this landscape by focusing on education, leveraging AI as an ally, and emphasizing their unique strengths. By embracing the symbiotic relationship between human judgment and AI-driven insights, users can adapt, evolve, and continue to thrive in an increasingly AI-driven market environment.