Bitcoin lurks at a local bottom

Market picture

The crypto market capitalisation grew 0.28% over the last 24 hours, as much as Bitcoin over this period. The market is now in a wait-and-see mode after Monday's sharp drop. The top 10 altcoins show mixed dynamics, ranging from -2% (Polygon) to +1.75% (Litecoin).

Bitcoin is trading around $27.6K, remaining near the lows of the last two months and below the 50-day moving average. The bulls can't gain more than a pause in the slide, but the market has yet to return to the upside. Moving out of the $27-28.5K range can start a broader move towards a breakout, with targets at $25K and $30K, respectively.

According to CoinShares, investments in crypto funds fell by $54 million last week, the third consecutive week of outflows. Bitcoin investments decreased by $32 million, Ethereum by $2 million, and inflows in funds allowing to short Bitcoin fell by a record $23 million.

Background to the news

According to a Goldman Sachs survey, the number of family offices "potentially interested" in cryptocurrencies has fallen from 45% to 12% by 2023.

Cryptocurrency exchange Bittrex filed for bankruptcy after ceasing operations in the US due to regulatory pressure. The default also applies to several of the exchange's subsidiaries.

Brad Garlinghouse, Ripple Labs CEO, has advised cryptocurrency startups not to shop in the US to avoid regulatory harassment.

Hong Kong authorities have announced a "tough" approach to cryptocurrency regulation. From 1 June, all exchanges must be licensed by the Securities and Futures Commission (SFC). The authorities will also introduce a mandatory licensing regime for stablecoins by 2024.

Ireland's central bank governor urged citizens to be skeptical about investing in cryptocurrencies, saying they are high-risk, dangerous and "too much like the lottery".

About the author

Alex Kuptsikevich is a financial market professional with 16-years’ experience and a senior financial analyst at FxPro. He is the author of daily reviews on the impact of economic events with comments featured in top international and Russian media. Alex covers fundamental analysis, global markets, the foreign exchange market, gold, oil, and cryptocurrencies in his analytical pieces. As the senior financial analyst at FxPro, Alex is a guest expert in 1-tier global media such as Forbes, Coindesk, Euromoney and Morning Star.