IBLC - VanEck Crypto Monthly Recap For June 2024

2024-07-09 04:45:00 ET

Summary

• Digital assets slumped in June as trading volumes and volatility followed seasonal patterns and fell to year-to-date lows.
• Bitcoin and Ethereum slumped 10% for the month vs. the S&P 500 and Nasdaq Composite, up 4% and 6%, respectively.
• In June, the Ethereum community solidified plans for its next major upgrade, Pectra.
• NEAR Protocol’s token investors suffered large losses this month, erasing much of the coin’s YTD outperformance.

Digital assets dropped as trading volumes and volatility hit yearly lows. Despite weak prices, daily active addresses on Layer 1 blockchains hit a new high, and regulatory rulings favored Binance and potential ether ETPs.

Please note that VanEck may have a position(s) in the digital asset(s) described below.

Digital assets slumped in June as trading volumes and volatility followed seasonal patterns and fell to year-to-date lows. The German and U.S. governments moved long-dormant bitcoin (about $500M) onto crypto exchanges, presumably for sale, ahead of a likely distribution of Mt. Gox bankruptcy claims to creditors as large as 142,000 bitcoin, worth about $9B at current prices. We also noticed a substantial pickup (+45% m/m) in Bitcoin miners' transfers to crypto exchanges, adding to the spot selling pressure, as U.S.-based miners accelerated their transition to AI and high-performance compute (HPC) with core mining economics suffering in the wake of the Bitcoin halving. Meanwhile, Ethereum's new pricing model is causing additional ETH inflation, which is a worrying change in the market structure....

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