Despite a volatile and overall downward price action on Bitcoin, there remains a bunch of positive announcements across the month of June. The decline in price was also much less pronounced than in May. Hopefully this signals the start of a rebound for Bitcoin and the broader crypto market.
In terms of price action, Bitcoin saw a decline of 6.17%, opening at $37,279 and closing the month at $35,037. June also marks the 3rd consecutive monthly red candle.
I will highlight 4 developments that occurred in June to signal that the dark clouds over Bitcoin may soon dissipate.
1. Bitcoin is now legal tender in El Salvador
For those naysayers that proclaimed “Bitcoin will NEVER be used as a currency because volatility!”, welp, the nation of El Salvador just did.
Not only that, their government did this in record time, in just under a week. The President of El Salvador even made the time to appear in an unscheduled Twitter Spaces session to give his thoughts and views on how the bill will work in practicality.
Following the news that El Salvador has made Bitcoin legal tender, several other nations soon chimed in that they too, will look into the possibility of embracing Bitcoin in a more fundamental manner.
It feels like we will see more of such news from other nations before we close out the year.
2. Recovery from the bottom
Bitcoin went under $30K in June multiple times, but each time was followed by a pretty strong bounce. Price action appears to have settled between $33,000 and $36,000 for the time being.
Again, with the positive news all around, it’s hard to imagine prices will remain at these levels for much longer.
We are currently still in a bear trend, and under the 200-day moving average, but I reckon we will start moving up pretty soon, as on chain metrics start showing seller exhaustion, especially from the newer holders.
3. Bitcoin miners signal for taproot readiness
Taproot, the first major upgrade to the Bitcoin network since Segwit in 2017, will take place in November this year. Earlier in June, we had a 90% of blocks signaling for Taproot, making it official.
This major upgrade and update to the network will bring major benefits to Bitcoin, namely:
- Privacy benefits
- Introduction of smart contracts
- Lower transaction fees
- Enhanced security
If you want to know more about the benefits covered above, here’s a Taproot 101.
4. Cathie Wood’s ARK Invest applies for Bitcoin ETF
ARK Invest teams up with 21Shares to enter a bid for a Bitcoin ETF.
SEC Chairman Gary Gensler will not just have her application to contend with. In fact, Cathie joins a waitlist of up to 14 Bitcoin ETF applications, alongside applications from VanEck, Fidelity, SkyBridge and WisdomTree among others.
It will be a huge boost to the crypto space should any of the 14 applications be approved. These are all sitting with the SEC currently pending reviews and results, which some think may arrive later this year.
With so many bullish factors at play, I do think we start moving up from here. Hopefully, the next monthly report I write will be a positive one with a nice green candle to break the trend.
I shall leave you with this, and let’s zoom out, enjoy the 10-year view, and keep in mind the big picture!
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