Chart of the Day
Never a dull weekend in crypto as BTC broke the $50k resistance again after forming a support base near $49.5k. It is currently sitting well above the 100-hourly average and consolidating below the $52k resistance. The surge over the weekend coincided with a rally in global stocks, indicating a growing appetite for risk among market participants. Some analysts attribute BTC’s strong rally to a supply squeeze as the percentage of illiquid supply rose to a three-year high. On-chain metrics present extremely bullish signals, revealing a growing HODLer mentality. Long-term hodler supply has been skyrocketing since the series of massive long liquidations between April and May. Meanwhile, the spent volume age band is flagging some unusual activities that follow a similar narrative. A typical accumulation period has around 4% of the volume older than one month as young coins are taken out of circulation. However, the current value has dipped below 2%, indicating the return of HODL conviction. The bullish sentiment is shared in the broader crypto markets as ETH touched $4,000 for the first time since May and FIL jumped 14% amid sideways movements of top altcoins.
Talk of the Town
Taming the “Wild West”? The Security and Exchange Commission (SEC) begins probing into Uniswap Labs, the main developer behind one of the world’s largest decentralized cryptocurrency exchanges (DEX), amid heightened regulatory interest in the DeFi space. According to the report by the Wall Street Journal, enforcement attorneys are looking for information on how investors use Uniswap and the manner in which it is marketed. On the bright side, DEX has definitely grown “big enough” to warrant intensified regulatory scrutiny — by May, trading volume on DEX has reached nearly $162 billion, with Uniswap leading the way.