1. Market Wrap: Attempts to Push Bitcoin Above $40K Stall
Some analysts are optimistic while others prefer to see stronger signs of upside momentum before calling a bottom.
Bitcoin stalled for most of Monday before making another run at $40,000 as of press time. The world’s largest cryptocurrency by market valueis holding support above $36,000 and remains up about 20% over the past seven days.
Some analysts are optimistic about a decisive break above $40,000 while others prefer to see stronger signs of upside momentum before calling a bottom in bitcoin.
Bitcoin (BTC): $39752.7, -0.3%
Ether (ETH): $2523.88, -0.85%
“Bitcoin is at its highest level since May, a notable recovery, but the crypto asset has yet to convincingly break through — and most importantly, close above — the $41,000 mark,” wrote Simon Peters, analyst at multi-asset investment platform eToro.
2. Hunt for Yield: Wrapped BTC Now Holds More Than 1% of Bitcoin’s Circulating Supply
The trend shows how some savvy crypto traders have pivoted to salvage or maintain returns even as bitcoin’s price tumbled.
With bitcoin (BTC, -0.4%) prices retreating over the past month, crypto traders have increasingly tokenized the cryptocurrency into synthetic versions compatible with the Ethereum blockchain, where they can be deposited for extra yield.
The number of bitcoins locked on the Ethereum blockchain via wrapped bitcoin (WBTC, -0.39%), a decentralized finance (DeFi) protocol leveraged to convert BTC to ERC-20 tokens, has increased to a record 189,000 BTC, according to Arcane Research’s weekly note published Tuesday. The tally has increased fourfold in the past 12 months to a record 1% of bitcoin’s circulating supply of 18.73 million.
The trend shows how some savvy crypto traders have pivoted to salvage or maintain returns even as bitcoin’s price tumbled by 35% last month.
3. Most Fund Managers Say Bitcoin Still in a Bubble: Bank of America Survey
The results are up six percentage points from last month’s data, indicating sentiment on Wall Street has turned more bearish.
Some 81% of fund managers believe bitcoin (BTC, -0.35%) is in a bubble, even after May’s 35% price crash, according to the latest Bank of America Global Fund Manager survey.
The results for the period June 4–10 are up six percentage points from last month’s data, indicating sentiment on Wall Street has turned more bearish.
The skepticism among the 224 fund managers surveyed comes despite fresh signs of institutional interest in bitcoin from hedge funds and banks including Wells Fargo.
4. Former Coinbase Legal Exec Lempres Joins Silvergate Capital as Chairman
Lempres takes over from Dennis Frank, who had served as chairman since 1996.
Michael Lempres, the former chief legal executive at cryptocurrency exchange Coinbase (NASDAQ: COIN), has joined Silvergate Capital (NYSE: SI) as chairman.
Lempres takes over from Dennis Frank, who had served as Silvergate’s chairman since 1996, the lender said Tuesday.
Prior to joining Silvergate, Lempres held the position of executive in residence at venture capital firm Andreessen Horowitz. He was the chief legal and risk officer of Coinbase and senior attorney at Silicon Valley Bank.
Silvergate Capital also appointed Aanchal Gupta to its board of directors and to the board of its Silvergate Bank subsidiary.
Gupta has managed security risks at several companies, including Microsoft, Facebook and Yahoo.
Gupta is now vice president of Azure, Microsoft’s cloud-computing platform, where she is in charge of responses to security incidents and building cloud security products, Silvergate said.
5. Open Positions in Bitcoin Futures Rise to 1-Month High
Open interest rose to $13.1 billion after being in the $10.5 billion to $13 billion range.
Outstanding bitcoin (BTC, -0.36%) futures contracts have climbed to a one-month high, suggesting a rebound of speculative activity surrounding the cryptocurrency after a string of positive headlines that appear to have stabilized the market.
The aggregated dollar value of open interest — bitcoin futures contracts traded but not settled — has climbed to $13.1 billion, the highest since May 19, data from Skew shows. For the past month, open interest mostly stood in the range of $10.5 billion to $13 billion.
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June 16, 2021