Bitcoin’s attempt to recover from Monday’s low under $59,000 has hit a roadblock as it struggles to gain momentum above $61,000. The broader crypto market, as represented by the CoinDesk 20 (CD20) Index, also experienced lackluster trading during European hours. This pause in the crypto market coincides with the dollar index (DXY) rising above 106, the highest level since May 2. The strengthening dollar is keeping investor risk appetite in check as they await key economic data releases, including U.S. first-quarter GDP data, durable goods for May, and a weekly jobless report scheduled for 12:30 UTC (08:30 EST).
Market analysts are closely monitoring the weekly jobless claims data, as there has been a recent increase in jobless claims, indicating a potential inflection point in the labor market. The upcoming Biden-Trump presidential debate at 21:00 EST is also on the radar for crypto traders, as they look for clues on how the outcome of the election might impact the industry.
There is a growing consensus that demand for U.S.-based spot ether ETFs may not be as strong as for bitcoin ETFs. Galaxy Research predicts that once approved, Ether ETFs could see $1 billion of net inflows per month, which is expected to be 20-50% of the net inflows into Bitcoin ETFs over the first five months. However, concerns have been raised about limited demand due to the lack of staking rewards, which could potentially impact overall inflows. The approval of these ETFs by the SEC is anticipated as soon as July 4, according to a Reuters report.
Marathon Digital, a Bitcoin miner, has diversified its revenue stream by becoming a multicoin miner in response to the halving of Bitcoin profits, which decreased by 50% and intensified competition in the industry. The company has mined 93 million kaspa (KAS) tokens since September 2023, valued at about $15 million. Marathon has also brought 30 petahash worth of machines online to mine the token, with plans to add 30 more by the third quarter. This move allows Marathon to generate revenue that is not solely dependent on Bitcoin and leverages its expertise in digital asset computation.
In the options market, traders are anticipating renewed bullish momentum in Ether after the potential approval of Ether ETFs by the SEC. The concentration of volumes in higher strike call options indicates a bullish bias, possibly influenced by the improving regulatory outlook for Ether. Last week, the SEC dropped its case against Consensys regarding Ether’s status as a security, which has positively impacted market sentiment.
Overall, the crypto market is facing challenges as Bitcoin’s recovery stalls amid a strengthening dollar and cautious investor sentiment. The upcoming economic data releases and political events are expected to provide further insights into the market direction. Investors are closely watching developments in the ETF approval process and diversification strategies by mining companies to navigate the evolving crypto landscape.