KEYTAKEAWAYS
- Young affluent investors increasingly prefer cryptocurrencies over traditional investments, challenging older generation norms.
- Ethereum's long-term holder count hits new highs, with significant retention from acquisitions during 2021-2022.
- Recent $877.9 million outflow from BTC spot ETFs indicates a temporary market adjustment, with reduced buying power expected through late August.
CONTENT
In the Crypto Pre-drink, we serve up a daily shot of the hottest crypto news and market insights to fuel your investment decisions.
BANK OF AMERICA: YOUNG INVESTORS FAVOR CRYPTOCURRENCIES
A report by Bank of America reveals that affluent young people favor cryptocurrencies and alternative investments, diverging from the traditional interests of older generations. The bank noted that, in fact, the most ‘conservative’ group holds the highest average amount of cryptocurrencies.
GLASSNODE: RECORD HIGHS FOR ETHEREUM LONG-TERM HOLDERS
On June 20th, data from Glassnode indicated that the number of long-term Ethereum holders has reached a new high. The Ethereum HODL Waves chart shows a concentration of holdings from 1 to 3 years, suggesting that a significant amount of Ethereum acquired during 2021-2022 is still being held. The 1-2 year and 2-3 year intervals reflect these holding patterns, accounting for a large part of the total supply. Additionally, the share of Ethereum held for over 7 years has increased, representing long-term holders who have experienced multiple market cycles.
DERIBIT: MARKET IN ADJUSTMENT, BUYING POWER DOWN UNTIL LATE AUGUST
Lin Chen, Deribit’s APAC Business Head, stated on social media that there has been a consistent net outflow of BTC spot ETFs over the past week, totaling $877.9 million. The market has recently entered an adjustment phase. Many traders are expected to go on vacation this summer, which is likely to continue reducing buying power, potentially until late August.
CRYPTO TRADING INSIGHT
BTC: Bitcoin dropped to $64,100 on the 18th with increased trading volume but quickly rebounded, demonstrating strong support. Subsequent smaller bearish candles on 19th and 20th showed reduced volume and did not reach new lows, indicating a slowdown in the downward trend.
Despite no clear signs of a market reversal, the diminishing bearish strength and the ongoing bullish market trend suggest that Bitcoin may continue to experience fluctuations. A reversal signal could potentially lead to a new upward trend.
ETH: Ethereum has demonstrated strong performance, rebounding quickly after twice dipping below $3,500. The pattern of rebounds includes forming doji stars and a hammer candle at the same support level, highlighting robust support beneath this price point.
