Crypto Market Forecast: Week of June 7th 2021

A difficult second half of the week in digital asset markets has ended with the Bitcoin price down and many large-cap assets trading red and losing value. Bitcoin slid ~10% while Ethereum (ETH) was down ~5%.

FUD surrounding China’s regulatory approach to cryptocurrency continues to weigh the market down. On Saturday, the popular Chinese messaging service Weibo banned several influential cryptocurrency accounts.

The operators of the accounts were unable to access them and users attempting to visit these pages were met with a message stating these accounts had violated Weibo guidelines and “relevant laws and regulations.” It appears the banned accounts were actively involved in promoting crypto exchanges, which are banned in China.

Wu Blockchain reports that these Weibo accounts have as many as 5 million followers. In the aftermath of the account bans, the Bitcoin price dropped around 5%.

In its weekly newsletter, Wu Blockchain reports that a security company consisting of former Chinese police officers predicts that within three months, a judicial interpretation of the criminal elements of crypto within China will be released. The group predicts Over-The-Counter (OTC) merchants, transaction-matching services, mining, and ICOs will all be made illegal.

Bitcoin’s week, however, began strongly with central American nation El Salvador announcing it plans to become the first country in the world to both adopt Bitcoin as a reserve asset and accept it as legal tender. Speaking at last week’s Bitcoin 2021 event in Miami, Nayib Bukele, the president of El Salvador, said he is planning to introduce a law that will make Bitcoin legal money, alongside fiat currency, in the country. Bukele revealed that El Salvador will be partnering with Strike, a lightning network-powered Bitcoin version of the payment app Venmo to power payments within the country.

Trading set-ups for the week

Pro trader Josh Olszewicz explores trading options and signals for BTC and ETH – and lays out the trading setups he’s watching for the upcoming week. Start your week off right with Josh’s thoughts on trading strategies on a weekly basis.

Bitcoin, ALTs and Ethereum – Trading setup for the week of the 7th of June 2021

Crypto news for the week ahead

June 7th – VeChainThor blockchain to version 1.5

VeChainThor, a public Proof-of-Authority for building Dapps, will conduct a major network-wide upgrade this Monday. The release will activate the ETH_IST so the blockchain can maintain compatibility with the latest Ethereum virtual machine. No action is required for holders of VET, VTHO, and other VeChain based tokens. Nodes will have to upgrade. Vechain (VET) is down ~8% in the last week.

June 10th – BitTorrent Network NFT airdrop snapshot

Holders of Tron BTC (TRC20-BTC), Tron ETH (TRC20-ETH), Tron TUSD (TRC20-TUSD), Tron (TRX), BitTorrent (BTT), and Just (JST) will receive airdrops of APENFT tokens. 1% of the total supply of the token will be dropped on Thursday (9,999,900,000,000 tokens). 4% of the total APENFT (NFT) supply will be airdropped once per month for 24 months.

Top 10 Crypto Summary

After a tough weekend and starting the new week, many large-cap crypto assets faced double-digit losses over the last 7 days. The biggest faller in the top 10 was XRP (XRP) – down ~19% in the last week. Attorney Jeremy Hogan, who has been closely reporting on the proceedings of the SEC’s lawsuit of Ripple says a settlement agreement between the two parties could involve limiting XRP private sales to companies and clients, which would bottleneck the flow of XRP into the market for years.

Bitcoin Price Chart

Bitcoin markets trended down last week. The price drop has been accompanied by a clearing out of network congestion and a fall in demand for Bitcoin block space. Glassnode has reported that onchain, Bitcoin has been observing a fall in daily active addresses, total transfer volume, and mean transaction fees.