Yellow Capital Blog/Crypto Market Making/Crypto Market Outlook for June 2024

Crypto Market Outlook for June 2024

Tuesday, July 02, 2024

Let's look into reasons for BTC's drop, how the SEC sues crypto, significant blockchain investments, and more significant crypto market events and news from June 2024 in our monthly crypto market outlook.

Bitcoin Drop in June 2024

Bitcoin saw wild volatility over June 2024, when its price plummeted to around $59,000. Here are the key reasons behind this decline:
Sale of BTC by the German Government
The German government sold off a substantial amount of confiscated Bitcoin, nearly 50,000 BTC. An initial sale of approximately 3,000 BTC had already impacted the market, and expectations of similar additional sales were increasing the selling pressure with accompanying anxiety.
Mt.Gox Repayments
Now, the defunct cryptocurrency exchange Mt. Gox has started to pay off its creditors using around 141,686 BTC. The fear is that creditors will sell their Bitcoin as they receive it to cash out, leading to further market downfall.
Whales Behavior
In addition, the so-called "whales" have significantly tempered their trading activity. Overall, the volume of big deals (more than $100,000) has decreased by 42%. All this signals the caution of large market players, which usually incites uncertainty in the market and causes price volatility when whale activities are pulled back.
Cascading Liquidations
This weakness in price triggered liquidations in the derivatives market. Crypto positions of approximately $311.3 million were liquidated, with most being longs. This cascading effect encouraged more losses, as traders betting on a rise in the price of Bitcoin were practically forced to sell out their positions.
Market Sentiment and External Factors
General market sentiment also had not been on Bitcoin's side as it dropped in price. Negative news, including huge outflows from Bitcoin ETFs, added to the bearish outlook. That created a perfect storm of selling pressure and market instability.
These combined put massive downward pressure on Bitcoin's price, leading to the decline in June 2024.

Bitcoin Network Activity

Bitcoin network activity fell to its lowest level since 2010, with only 614,770 active addresses recorded on June 27, 2024. This decline indicates a phase of market consolidation and reduced transaction activity.

Crypto Market Moves

Ethereum Volatility Surpasses Bitcoin in Options Market
In June 2024, Ethereum surpassed Bitcoin in terms of volatility within the options market. This change was driven by bullish market sentiment in anticipation of a surge in demand in the U.S. following the final approval of Ethereum spot ETFs. Analysts at QCP Capital noted this positive expectation was reflected in increased implied volatility. Data from Deribit on June 3 showed that Ethereum's volatility exceeded Bitcoin's by 15%. This divergence began after the U.S. Securities and Exchange Commission (SEC) approved Forms 19b-4 in issuer filings for Ethereum spot ETFs on May 23.

TON Hits Historical Maximum
On June 5, 2024, The Open Network (TON) reached a new all-time high, with its price rising to $7.8. This increase was driven by the addition of TON to the European trading platform Robinhood Crypto. Over the past 24 hours, TON's value increased by 13%, trading around $7.1 at the time of writing, with a market capitalization of $17.8 billion.

Crypto Investments

Web3 and blockchain projects attracted over $890M in investments

In June 2024, blockchain projects acquired funding for $891.83 million.

Crypto investments in June 2024

The most active investors were:

The most active blockchain and crypto investors in June

Top fundraising deals were:

Top blockchain and crypto projects that acquired investments

MicroStrategy Increases Bitcoin Holdings
MicroStrategy purchased an additional 11,931 BTC, increasing its total holdings to 226,331 BTC. The firm now holds Bitcoin assets valued at $14.5 billion.

Increase in Global Crypto Investors
A report by Triple-A highlighted a 34% increase in global crypto investors, reaching 6.8% of the world's population.

New Crypto Products

Coinbase Introduces Gasless Wallet
Coinbase launched a new wallet that supports gas-free transactions. The Coinbase Wallet, available in web format, simplifies the user experience by eliminating the need for application installation or browser extensions. Users can log in using Face ID, Google profiles, fingerprint, or YubiKey without needing to write down a secret phrase or set a password.

New MetaMask Feature: Collective Staking
MetaMask introduced a new feature allowing collective staking of Ethereum, lowering the entry threshold from 32 ETH (~$113,000) to make staking accessible to a wider range of users. Unlike competitors like Lido and Rocket Pool, MetaMask does not offer liquid staking tokens but focuses on enhancing other aspects of the user experience.

Binance Announces Airdrops for BNB Holders
Binance launched the HODLer Airdrops program for BNB holders, providing early access to new tokens set to be listed on the platform.

SEC vs. Crypto

SEC Charges Against Binance
The SEC continued its legal proceedings against Binance, maintaining most of its charges while dismissing a few. The case focuses on issues related to BNB token sales, the BNB Vault program, and Binance's staking services.

SEC Delays Ethereum Spot ETFs Approval
The SEC delayed the approval of Ethereum-based spot ETFs, requesting amendments to Form S-2 from potential issuers. The final decision is expected by September 2024.

SEC Sues Consensys
The U.S. Securities and Exchange Commission sued Ethereum software provider Consensys over its MetaMask service, alleging the wallet tool was an unregistered broker that engaged in the offer and sale of securities. The SEC also targeted Ethereum staking services Lido (LDO) and Rocket Pool (RPL), the third-party platforms MetaMask uses to power its staking feature.

SEC Closes Ethereum Investigation
The SEC closed its investigation into Ethereum 2.0, clearing the way for Ethereum spot ETFs and affirming Ethereum's classification as a commodity.

Terraform Labs Settlement with SEC
Terraform Labs agreed to pay $4.47 billion to settle SEC charges, marking one of the largest fines in U.S. corporate history.

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Crypto Controversial

CZ's Ownership of BNB
Forbes reported that Changpeng Zhao (CZ), the founder of Binance, owns 64% of the total BNB supply, amounting to almost 94 million BNB (~$57 billion). This makes him one of the richest individuals globally, with a net worth of $61 billion.

Winklevoss Brothers Support Trump
Tyler and Cameron Winklevoss donated $2 million in Bitcoin to Donald Trump's campaign, emphasizing their support for pro-crypto policies and criticizing the current administration's stance on digital assets.

Gemini Settles with New York Prosecutors
Gemini agreed to pay $50 million to settle claims related to the defunct Earn staking program, ensuring that defrauded investors recover their assets.

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