Crypto markets move in tandem with equities

​​$BTC 24 Hour High  $40,800  / Low $37,701  |   $BTC -5.6% Past 24 hours; -7.7% Past 7 days

Good morning. After the recent aggressive rally, the crypto markets suffered a trend reversal and followed the macro movements to retrace. As we preempted yesterday, the recent bounce would be short-lived. Besides, the digital assets markets also experienced a significant setback as the launch of the much-anticipated Australia crypto spot ETF was halted one day before a proposed listing on Cboe Australia.

The BTC bears took over again in the past 24 hours and fuelled a continuation of the downtrend that the market seems to find itself in. Our short-term target for $BTC can be as low as $36,676 for this week as the VPVR indicated a spike of trading activity had taken place this year. Liquidation levels among longs have started to build towards $35,500, where the next real break-off is. We could see an acceleration of prices up to this point, with spot selling being one of the major contributing factors. Equity futures got smashed too and the E-Mini Nasdaq 100 traded at the lowest level since last April. We would recommend against catching a falling knife at this stage, and especially there is likely more room for $BTC to dip further. 

$ETH also moved doggedly lower, with our first target of $2,698 slowly coming into sight. On the liquidation map, we noted a good chunk of positions all the way down to approximately $2,600, so it’s likely that we ultimately end up here over the next month. The current level of funding rates indicated that market participants were betting on lower prices. But, we wouldn’t stand in the way of that for now, although short-term relief rallies just like the one we witnessed recently may reappear sporadically. The overall market structure is still shaping up positively, but it largely depends on how quickly the equity markets can turn around.  

The epic “merge” of ETH in June has been delayed once again as the timeline for the transformative upgrade of its blockchain continues to extend. The transition aims to bring the No. 2 digital asset to a more eco-friendly, faster, and less power-intensive state from proof-of-work to proof-of-stake. Although the constant delay has already rocked investors’ confidence, the markets continue to hold onto the hope that a “flippening” will happen sometime in the future – as compared to ETH, BTC has no real-world application capability essentially, except for its stored value for investment.

Learn more from today’s Trader View video.

Digital Assets Market

  • Total crypto market capitalization stands at $1.86T, -5.7% from yesterday
  • $BTC is +0.44% at time of writing; 24H liquidations and funding rates: 107.90M, -0.00724% average
  • $ETH is +0.54% at time of writing; 24H liquidations and funding rates: 87.52M,-0.00560% average 
  • Stablecoins market dominance: USDT 44.36%; USDC 26.35%; UST 9.79%; BUSD 9.33%; DAI 4.60%

Alts and DeFi watch:

  • DeFi TVL: $205.35B (-3.67% over last 24 hours)
  • $SOL -5.0% in the last 24 hours, -11.4% in the past week
  • $SHIB -5.3% in the last 24 hours, -15.1% in the past week
  • $SAND -8.5% in the last 24 hours, -0.5% in the past week
  • $ENJ -7.6% in the last 24 hours, -15.6% in the past week

More news that caught our eye:

OSL Trader View is contributed by Hans-Stefan Vonhaenisch & Ethan Fu.

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