Rekt But Recovering?

The news from Planet Ruby—Friday, June 28, 2024

• Signal: Censorship-resistant borderless digital gold
• Noise: Price volatility

Dollar strength continues to be a headwind for at least some risk assets, with the DXY pushing above 106. The dollar is making higher lows and eyeing a higher high as the market continues to digest the Fed's intentions for the rest of the year. However, it may just have been rejected at resistance. Time is needed for confirmation, but we should know soon.

The Nasdaq and S&P have both corrected this week from all-time highs, though both are recovering well. Gold, too, continues to play out its correction from $2,450, and may be painting a bearish head-and-shoulders pattern on the chart, with a target around $2,150. Again, we await confirmation, but at this point, we wouldn't want to be Peter Schiff.

Elsewhere, Argentina enjoyed its first week without food inflation in 30 years, thanks in large part to its new president's reforms.

Bitcoin Tests The Lows

Bitcoin has been stuck in a range for four months, since breaking through $60,000 in February. It abruptly took a turn down on Monday, dropping below $58,500, before regaining the vital $60k support. The local low of $56,500 on May 1 remains intact.

The Crypto Fear & Greed Index at last fell back into "Fear" levels on Tuesday, and its lowest since September 2023, following an extended period in Greed territory.

There are a handful of factors that drove this fall in price. One is simply the need for a period of re-accumulation after a spectacular run-up from $15,500 to $74,000 in the 16 months since November 2022. Another is inefficient miners going offline following the cut in block rewards after the Halving, and selling their reserves in a last-ditch attempt to survive.

A major catalyst was the news that Mt Gox will finally start distributing 140,000 BTC in July to customers who lost funds when the exchange collapsed. Fears are that many holders will simply dump their coins, currently worth more than $8 billion.

Bitcoin's 200 simple moving average (SMA) will be an important line to watch in the coming days and possibly weeks. It currently stands at around $58,000, and is rising all the time. The 200 SMA is a key threshold to maintain. For now, it's unclear whether this latest drop was capitulation, or the start of a deeper correction.

In other news, Elon's initial plans for a payment system using X won't involved crypto, whether DOGE or otherwise. A number of unconfirmed reports are circulating that Donald Trump has selected crypto-friendly Vivek Ramaswamy as his Vice President. Trump's chances of being elected rose following a stumbling debate performance by Joe Biden. VanEck has filed for the first Solana ETF in the US, asserting that SOL is a commodity.

And finally, ETH ETFs may launch as early as next week. One expert's analysis suggests that overall flows might prove a welcome surprise.

What's New In The SKALEVERSE?

It's great to welcome Sushi, an OG AMM, to the SKALE ecosystem. Don't miss out on your share of liquidity mining rewards!

Follow Ruby on X/Twitter, join us on Discord, and subscribe to the Ruby blog for regular updates.