Momentum Fades in Cryptocurrency From U.S. Debt Ceiling Optimism

Weekly News Wrap Up

Hype around the Artificial Intelligence (AI) theme, progress on the debt-ceiling bill passing the House of Representatives, and an uptick in the U.S. unemployment rate to 3.7% (vs. expected 3.5%, prev. 3.4%) buoyed risk assets in the last week. In Crypto, Beijing released its white paper on Web3 coinciding with Hong Kong’s opening of cryptocurrency trading on 01 June, analysts are cautious on cryptocurrency prices from a liquidity shock as the U.S. Treasury replenishes its cash reserves, and rumors of downsizing at Binance amid the bear-market.

U.S. equity markets rallied with uncertainty from U.S. debt-ceiling drama receding: SPX+1.83%, DJIA +2.02% and NASDAQ +2.04%. Cryptocurrency majors BTC -5.53% and ETH -1.10% dipped as momentum from last week’s rally cooled amid profit-taking with the former trading below $28,000 and latter below $1,900.

On-chain analysis from @Glassnode shows that Inscription Transactions on the Bitcoin network remain highly popular, especially due to BRC-20 tokens. Currently, these transactions account for an impressive 25% of all transaction fees. The widespread usage of Inscription Transactions has significant implications for the network and its stakeholders, highlighting the network’s evolution beyond its traditional roles. This is indicative of the network’s evolution, expanding its utility beyond its conventional roles as a store of value or medium of exchange.




Cryptocurrency News


Investment Consideration

Our best strategy for the moment is to take at least 1-3 years in Moderate Portfolio because it has a good defense with 50% Fixed Deposit , 30% In DCD and 20% in Staking.  After  all,  we  still  have  potential  returns  in  DCD  and  Staking,  especially in BTC.

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