June 2024 Crypto Assets Market Review

Market Overview

June is an important month for the Crypto Assets market, with significant improvements in the price trends of Bitcoin and Ethereum, as well as market sentiment.

Regarding Bitcoin, investors continue to accumulate assets, and several institutions have shown interest in Bitcoin. The University of Wyoming has established a Bitcoin Research Institute, and a financial services company has announced plans to launch Bitcoin financing operations. In the political arena, some politicians reaffirmed their support for the industry at the Bitcoin 2024 conference and proposed several suggestions beneficial to Bitcoin's development. Additionally, a senator has introduced a bill to establish a Bitcoin strategic reserve aimed at reducing U.S. debt.

On the Ethereum front, an important milestone was reached at the end of June. The Ethereum ETF was approved and began trading on June 23, with its first-day performance exceeding expectations. Although there was a certain degree of net outflow the next day, overall, ETH's performance was better than the market expected. This may reflect the market's optimistic expectations for future net inflows into the ETH spot ETF.

Altcoin Market

In June, the performance of the altcoin market was mixed. Some altcoins saw significant gains, such as MANTRA, HNT, and JUP, mainly driven by positive news and developments within their respective ecosystems. However, there were also some altcoins that experienced price stagnation or decline, such as FLR, FTM, and LDO.

It is worth noting that the monthly trading volume of the decentralized exchange (DEX) has reached a historical high compared to the centralized exchange (CEX). This surge comes at a time when CEX trading volumes are declining, and DEX trading volumes reversed the previous downward trend in June.

Macroeconomic Environment

The stock market experienced a significant adjustment in mid-June after a strong upward trend. The market is currently at a crossroads, with signals of economic slowdown coexisting with strong business conditions, along with political uncertainty, leading investors to adopt a cautious attitude.

The Federal Reserve Chairman recently discussed the outlook for the U.S. economy, stating that no decision has been made regarding a possible rate cut in September. The Federal Reserve is closely monitoring inflation and employment data to guide future decisions.

In China, the recent slight interest rate cut indicates that the government is cautiously stimulating the loan market. The statement from the Third Plenary Session emphasized the shift towards a "socialist market economy," including a focus on the technology sector.

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The imminent launch of Japan's first crypto ETF is a major development driven by a collaboration between traditional financial institutions and experts in the crypto space. At the same time, the Bank of Japan raised interest rates by 0.15 basis points for the first time in nearly 20 years, signaling a shift to more aggressive monetary policy management.

Conclusion

In June, the Crypto Assets market showed a positive development trend, but still faces numerous challenges. With the regulatory environment constantly evolving, the introduction of new financial products, and changes in the global macroeconomic situation, the market is expected to continue to fluctuate and be full of opportunities in the future. Investors should closely monitor market trends and make prudent decisions.