Bitcoin’s award experienced a modest 2.55% increase in June, not surpassing its May top of $ 112,000. Cryptocurrency continues to act within a narrow range, reflecting a period of consolidation, according to Ark Invest’s latest Bitcoin Monthly report.
A significant development that is highlighted in the report is the increase in long -term holders (Lths)There are now 74% of the total Bitcoin supply – a level that is not seen in 15 years. This suggests a strong conviction among experienced investors, even when the influx of new buyers is diminished.
However, the report also points to a decrease in capital flow on the chain during the second quarter, measured by market value-to-realized value (MVRV) Momentummetrical. This downturn indicates a cooling in market enthusiasm and a potential shift in investor mood.
In the wider economic context, the US dollar (as measured by Fed’s nominal wide trade -weighted dollar index) Continuing to climb and tress the dominant tale of dollar-dollar base that has given rise to prolonged bullish mood in crypto.
Meanwhile, inflation continued signs of ease, raising questions about Bitcoin’s traditional appeal as an inflation hedge-dog on the flip side can also lead to lower federal funding rates, something that tends to increase risk-on-assets such as tech stocks and cryptocurrencies.
Housing seems to be a weak joint, noted the report, which highlights a growing gap between elevated homeowners’ expectations and a sharp decrease in the sale of the home. This divergence suggests potential stress in consumer confidence and broader economic activity.
