Chart of the Day
Whales Surfacing. The price of Bitcoin settled well above the $35k level, yet failed to extend its gains beyond $38,500 — not for a lack of trying. Bullish signals are likely to remain active as whales and long-term holders have been buying the dip and stacking for the past week. Bitcoin and many altcoins started to show a strong upside trend after the release of May inflation data that has apparently exceeded expectations by far. The price paid by U.S consumers rose at the fastest pace since 2008.
Although many believe that high inflation is good for BTC, the April inflation data has nevertheless catalyzed a massive sell-off, along with extreme FUD sentiment fueled by negative news and regulatory pressure — not to mention that validates the Fed’s belief that inflation is transitory. Still, the market has yet to receive its much-longed and anticipated decisive signal after weeks of drifts and uncertainty.
Talk of the Town
Riskiest of Assets. The Basel Committee for Banking Supervision, the global standard body for bank regulation, proposed a 1,250% risk weight to a bank’s exposure to Bitcoin and certain other cryptocurrencies. The proposal, once put into effect, would make it exponentially more costly for banks to have crypto exposure, potentially impeding the pace of broader crypto adoption. However, being classified as a risky asset pushes Bitcoin a step closer to the mainstream financial world; the largest cryptocurrency reacted with a jump above $38k.
