Bitcoin and Ether hold up despite negative news flow

NEW YORK, NEW YORK, USA, June 27, 2022 / — ALT 5 Sigma Inc., a global fintech that provides next-generation blockchain-powered technologies for tokenization, trading, clearing, Settlement, Payment and Custody of Digital Data Instruments publishes its Digital Assets Morning Call.

• Crypto token prices extend stability into new week

• The flow of negative news continues…

• …but crypto token prices are showing some resilience

On the list:

A relatively calm weekend and the start of the new week saw major crypto tokens continue the price consolidation action that has developed over the past 5-6 sessions. Bitcoin continues to see selling interest – and therefore resistance – in the $22,000 area and as such, a sustained break above this level would likely improve near-term sentiment.

Also in the very short term, Ether has established a series of higher highs and lows on the hourly charts dating back to its last cycle low of $880 set on June 18th. The next resistance appears to be near ~$1300, which represents the bottom of the ~$1300-$1700 “gap” set during the June 10-13 selloff.

Negative news feed

Interestingly, the relative price stability of bitcoin and ether has occurred despite the latest news flow not being favorable to the crypto space. The Wall Street Journal reports that institutional investors are shorting the stablecoin Tether, citing the head of institutional sales at Genesis, a crypto brokerage.

The WSJ report follows the collapse of stablecoin TerraUSD last month, an unsecured algorithmic token. Unlike TerraUSD, Tether is backed by collateral. However, it has not been completely transparent about the composition of collateral reserves and this lack of clarity may encourage some market participants to bet against it for now.

Separately, crypto brokerage firm Voyager Digital has issued a notice of default to Three Arrows Capital, according to a CoinDesk report. Three Arrows reportedly suffered heavy losses due to the collapse of TerraUSD/LUNA last month, and struggled to meet margin calls from its brokerage/lending counterparties.

Finally, Goldman Sachs downgraded Coinbase to a “sell” due to the recent sell-off in crypto token prices and associated decline in trading volume, also reported by CoinDesk. Coinbase’s negative view is hardly a surprise to the market, as the stock has already fallen to nearly $60 from its high of nearly $360 last November. Nevertheless, the markets will certainly notice that a major trading house downgrades a stock considered one of the benchmarks in the crypto space.

Crypto Price Action Suggests Much More Bad News Is Being Factored In

Without wanting to say too much about these developments, one could say that the evolution of bitcoin and ether prices is somewhat encouraging in that they have (so far) weathered this negative news quite well. Along the same lines, it is also important to recognize that the recent sharp losses in crypto token prices have already factored in a considerable amount of bad news. While this hardly sounds the “all clear” for another rally in crypto prices, it does suggest that there is now a higher bar to generate further losses.

Robert Lynch
Research and Strategy Manager
ALT 5 Sigma Inc.
[email protected]


ALT 5 Sigma is a global fintech that provides next-generation blockchain-powered technologies for trading, clearing, settlement, payment and safe custody of digital instruments. ALT 5 was founded by specialists in the financial sector out of the need to provide the digital asset economy with security, accessibility, transparency and compliance. ALT 5 offers its customers the ability to buy, sell and hold digital assets in a safe and secure environment deployed with best practices in the financial industry. ALT 5 Sigma’s products and services are available for banks, brokers, funds, family offices, professional traders, retail traders, digital asset exchanges, digital asset brokers, developers blockchain companies and financial information providers. ALT 5’s digital asset custodian services are secured by Fireblocks.

Digital Asset Morning Call is for informational purposes only and does not constitute, expressed or implied, any provision of services or products by ALT 5 Sigma (“ALT 5”). Investors should determine for themselves whether a particular service or product is suitable for their investment needs or should seek such professional advice for their particular circumstances. ALT 5 Sigma. makes no representations or warranties to any investor regarding the legality of an investment, income or tax consequences, or the suitability of an investment for such investor. ALT 5 Sigma does not solicit or provide financial advice. This is at the sole discretion of the individual.

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