Bitget Hot Takes (June 12 - June 18)
Bitget Hot Takes is the exclusive weekly newsletter series by Bitget Academy, the 360-degree onboarding guide for all crypto enthusiasts.
The latest Bitget Hot Takes can be found here.
• BGB prices cooled down after the recent high; accumulation sentiment is still high.
• U.S. CPI at 4% YoY, core CPI at 5.3% YoY, no rate hike.
• USDT depegged after Curve 3pool became unbalanced.
BGB Cooled Down After Recent High
On June 06, 2023, BGB price rose to US$0.513378, which is equivalent to a 6.9% increase from the previous week’s high and a 7.7% increase from the same week’s opening price. After reaching the new high, BGB weekly high, returns and volume receded slightly by 5.7%, 0.6% and 9.5%, respectively.
Nevertheless, BGB weekly low rose by 1.4% to US$0.463729, thereby sharply tightening BGB trading range to only 0.020619. A narrow trading range combined with a decrease in volume could point to another rise in BGB price, especially with the Accum/Dist line going up like this:
Learn about technical indicators here: Trading 101: Technical Analysis Explained
Same as last week, the volume-to-market cap ratio, a simple measurement of liquidity, shows that BGB maintained a real stable liquidity throughout the seven days, whereas the rest took a nosedive towards the end of the week.
Check out the summary of the working week from June 12 to June 16 for BGB below to see why BGB demand remains stable…
… and dive deep into our BGB Sail Series to see how impressive BGB monthly performance is:
Tether’s Depeg Due To Curve Pool Imbalance
All eyes were on the upcoming U.S. CPI release on June 13 and the FOMC meeting on June 13-14. See why we need to pay attention to the macroeconomic conditions here: Debt Ceiling Is Lifted. Now What? and Macroeconomic Factors That Can Affect Crypto Prices
In comparison to the estimation of 4.1% YoY for CPI and 5.2% YoY for Core CPI, the actual data release carries conflicting signals. While the headline inflation seems to justify the FED's continuous rate hikes in the last two years with a significant drop to 4% - the lowest since April 2021, the core CPI (i.e. CPI minus Food and Energy) shows a milder downward trend at 5.3%. It is the second month that the core number has been higher than the headline one; the MoM changes of the former have also plateaued for three months already. As this figure is the more accurate indicator of the underlying economic trends, this is not a good phenomenon.
However, prices rising by 4% compared to the same period last year and an unemployment rate of 3.7% in May have resulted in a pause in the FED's QT series. Both TradFi and crypto markets popped after the good news, with Bitcoin hitting as high as US$26,769.39 on June 17, which is a 3.2% increase from the week's opening.
A sudden depegging event of USDT caused a short-lived panic in the market over the week. It originated from the imbalance in Curve's 3pool, which, in its ideal state, must have an equal amount of DAI, USDC and USDT. On June 15, USDT balance quickly surged to 50%, then 60% and at some point to over 70%, meaning people are swapping USDT for DAI and/or USDC.
Source: Curve 3pool
The last times USDT shares in this pool soared to 50% were during the Terra (LUNA)’s collapse and the FTX demise, hence the doomed speculation. However, nothing big appears to have happened yet except for arbitrage opportunities. As of June 19, USDT prices haven't but should recover soon.
The Latest Bitget News
The three best daily performers of the week are BHAT/USDT (178% on June 16), PEPE1/USDT (+119% on June 13) and LAI/USDT (+113% on June 14). BBO/USDT and PRIME/USDT have been able to maintain their charm as they continue to secure a spot in this week’s list of top daily gainers with the same daily growth of 47%.
It’s airdrop time: HAM/USDT will be listed on Bitget Innovation Zone on June 19 at 12:00 PM (UTC), with 13,000,000,000,000 HAM to be airdropped for BGB holders! HAM will be added to Bitget Flexible Savings, too, with an APR of 150% - turn on notifications for this lucrative earning opportunity here.
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