Markets
Bitcoin (BTC) Price Recovery Pauses as Dollar Rebounds; US Jobless Claims Take Center Stage
Bitcoin’s recovery from Monday’s low below $59,000 stalled as buyers struggled to maintain momentum above $61,000. Ether and the broader cryptocurrency market, represented by CoinDesk 20 (CD20) Index, also faced lackluster trading during European hours. The pause coincides with the dollar index (DXY) hitting 106, its highest since May 2, maintain investors’ risk appetite under control ahead of first-quarter US GDP data, May durable goods and a weekly unemployment report planned for 12:30 UTC (08:30 EST). “The market may be more sensitive to weekly jobless claims, given the recent increase and a growing sense, expressed by San Francisco Fed President Daly, that the job market appears to be at an inflection point,” he said Bannockburn Global Forex managing director and chief market strategist, Marc Chandler, in a market update. Cryptocurrency traders will be watching closely Biden-Trump presidential debateset for 9:00 p.m. EST, to get clues about what the outcome of the November election might mean for the sector.
Consensus is rapidly spreading that demand for US-based spot ether ETFs may not be as strong as that for bitcoin ETFs. On Wednesday, Galaxy Research said that the ETFs, once approved, could see net inflows of $1 billion per month. “We expect net inflows into ETH ETFs to be 20-50% of net inflows into BTC ETFs over the first five months, with 30% as the target, implying $1 billion per month in net inflows,” he wrote analyst Charles Yu. Galaxy also warned that demand may be limited due to the lack of staking rewards, echoing comments from Bernstein AND J.P. Morgan and such outflows from Grayscale Ethereum Trust (ETHE) could act as a damper on overall inflows. The SEC could approve the funds as early as July 4, according to a Reuters report on Thursday. Options traders predict a renewed bullish momentum in the ether after that date.
Marathon Digital Bitcoin Miner (MARA) has become a multicoin miner to diversify his revenue stream as the recent Bitcoin halving has cut profits by 50% and made the industry more competitive. The company has mined 93 million Kaspa (KAS) tokens since September 2023, worth about $15 million, and has brought 30 petahash of machines online to mine the token, with another 30 to go live by Q3. “By mining Kaspa, we are able to create a diversified revenue stream from Bitcoin that is directly tied to our core competencies in digital asset computation,” Marathon’s chief growth officer Adam Swick said in a statement.
CORRECTION (June 27, 13:32 UTC): Removes stray reference to Bitwise from second bullet point in Trending Posts section.