Dear subscribers,
In this version of Uncharted: Distilled we deep dive into bitcoin’s improving price action in the context of stabilizing markets in light of this week’s FOMC meeting. Selling pressure subsided, but the fear of a recession continued to weigh on investors.
Let’s dig in!
Summary
Uncharted #20 starts by analyzing the macroeconomic pressures as weakness in the DXY drove markets higher. Recession fears continued to rock the markets, but bitcoin showed the first signs of a potential decoupling from traditional assets.
Bitcoin held $22k and broke through the $23.5k resistance level as Swissblock’s Bitcoin Risk Signal dropped to the elevated-risk regime.
The DXY exerted less pressure on markets as certainty grew over this week’s FOMC meeting, driving capital to the US bond market.
Ethereum outperformed last week, followed by bitcoin and US equities.
On-chain data showed a reignited long-term holder accumulation, yet short-term holders continued to sell at a loss.
Spot demand on exchanges decreased in June as investors bounced back and forth between inflation and recession fears.
The demand for downside protection subsided in the options market with open interest skewed to the upside.
The number of perpetual swaps with negative funding rates decreased as ethereum and a subsiding risk of a pronounced drop moved the markets.
Bitcoin’s market structure is set up for another move up. Consumer confidence needs to strengthen for retail to reignite momentum.