Our opinion remains that Bitcoin remains in an overall macro Bull Market.
Last month we stated that Bitcoin will bottom, then most likely consolidate for a period.
Since May 24th, Bitcoin has been ranging from the current bottom at 30k,to 40k on the upside.
We continually monitor indicators on our own Alt. Coin Selection. Whilst Bitcoin ranges, this helps us determine the relative strength of individual coins in how they perform while Bitcoin moves from the bottom to top of its range.
We can see how much liquidity on exchanges is locked into Stable Coins (USDT, TUSD, USDC). This implies large traders have not exited the market, rather they are waiting on the sidelines for the next big move to be made. Stable Coins are where they safely “park their funds”.
Our strategy remains that our buy points of our wider coin selection will be determined by movements in BTC. Should we break downwards below 30-32k, then we see buy in points at 27k, 22k and even 20k. We await patiently to see if the current Bitcoin bottom at $30k holds, or if we go lower to find more profitable entry points.
On a Global level, we continue to see the Chinese government build legislation for Bitcoin Miners. The mining hash rate is therefore decreasing as China’s many miners move overseas. A drop in hash rate like this will be quickly corrected by the mining difficulty adjustment that occurs approximately every two weeks. Mining bitcoin will become easier for those still on the network (this makes the remaining miners more profitable until the miners who left are able to return to their mining activities). The United States will be the largest beneficiary and will welcome many of these Miners seeking a new home.
In other news last week, Grayscale (World’s largest Crypto fund, net assets under management (AUM) total $32.9 billion) announced they were adding 13 more currencies to their portfolio. All in the DeFi space. This is an endorsement of the sector as well for us with our own coin selection.