Last week saw the market close pretty much flat, as Bitcoin and Ethereum very quickly reversed any gains made earlier in the week. BTC continues to trade in the range, while ETH seems to have also settled into oscillating around the $1,800 level. Decoupling from the S&P 500 continued for the second straight week.
However, over the weekend, BTC saw a short breakout to $31.5k, before breaking back down to 29.5k. Whales and market makers are lapping it up, punishing late shorters and longers accordingly. We see this often in crabbing markets where bottom believers get tempted to leverage up before getting rekt by stop hunts. Otherwise known as ‘Barting (named after Bart’s hairstyle from the Simpsons), prices will quickly pump to resistance points before falling sharply after a day or so of consolidation as whales lure in desperate longers.
ETH, however, was far worse and saw some relentless selling as US markets opened on Monday morning. The ETH/BTC ratio retraced back to the 0.06 mark and was trading around $1.76k at the time of writing
One of the most prominent sellers has been a whale on Binance, selling as much as 100k eth in 10 minutes.
Many are attributing this volatility to the market reacting after the contents of the new US crypto bill entitled ‘Responsible Financial Innovation Bill’ was released over the last 24 hours. We have yet to read the bill in its entirety but a cursory overview suggests that a stronger regulatory regime is inevitable. Adam Cochran, CT’s threadooorrrr, already has a thread summarizing the contents.
1/12— Adam Cochran (adamscochran.eth) (@adamscochran) June 7, 2022
Wow, so first read some good stuff that moves us forward, but a lot of rough stuff.
Overall this gives US crypto clarity but it will have a huge cost and growing pains.
Here's what I noticed in the first read. https://t.co/Cb1TM0DVJs
It is important to note, however, that a Bill almost never passes in its first iteration without any amendments. We're awaiting more clarity before commenting further on this.