Cryptocurrency News Update: Moday brings some volatility, Ethereum outperforms top-10 coins

Here’s what you need to know on Monday

Markets:

BTC/USD gained over 1.5% since the start of the day and settled above $9,400. The intraday low is registered at $9,269. The short0term trend is bullish, while the volatility is shrinking. Despite the recovery, BTC/USD is still locked in a tight range.

At the time of writing, ETH/USD is changing hands at $234.75. The price touched $235.81 during early Asian hours, but retreated below the $235.00. ETH/USD has gained over 3% since the start of the day and the upside momentum is gaining traction. The coin is moving within a short-term bullish trend amid expanding volatility.

XRP/USD tested $0.1886 on Monday amid the recovery on the cryptocurrency market. At the time of writing, the coin is changing hands at $0.1850, having gained 1.4% since the start of the day. From the short-term perspective, XRP/USD is trading within a bullish trend amid shrinking volatility.

Among the 100 most important cryptocurrencies, SwissBorg (CHSB) $0.1428 (+12.3%), Flexacoin (FXC) $0.0033 (+12.12%), Celsius (CEL) $0.2934 (+9.55%). The day’s losers are Golem (GNT) $0.0609 (-9.28%), Verge (XVG) $0.0071 (-5.8%), Basic Attention Token (MATIC) $0.0215 (-4.7%).

Chart of the day:

ETH/USD, 30-min chart

Markets

Ethereum-based cryptocurrency options have been gaining popularity on Deribit, the largest trading platform for crypto derivatives. Over the past two months the trading volume surged above $150 billion barrier for the first time on record and hit $158 billion. Ethereum is the second-largest digital asset that rivals Bitcoin and serves as multiple purposes. An increased interest in ETH options the may become a trigger for coin’s price increase in the long run.

Bitcoin’s hash rate signals that Bitcoin is a perfect buying opportunity at this stage, according to Charles Edwards, a blockchain analyst from Capriole Investments. The expert notes that the market is still dominated by miners’ capitulation but the hash rate indicator is about to send a clear «buy» signal. Edwards uses a technique based on moving average (MA) crosses developed another famous cryptocurrency analyst by Preston Pysh. He emphasizes that miners capitulations started in the end of May and will last until the end of June; however, the hash rate dynamics is a leading indicator that reflects the momentum that may happen later. 

Hash Rate «Recovery» looks like it may occur next weekend using the @PrestonPysh forecast technique! The Hash Ribbon «Buy» signal also requires price momentum to improve from here, so could take a bit longer than a week. Maybe the last HR accumulation zone for a long time.

Industry

According to the research published by Tokenist, millennials around the globe prefer holding $1,000 in BTC over bonds, real estate, and gold. The team surveyed nearly 5,000 respondents from various gender and age groups in 17 countries and found out that since 2017, people’s trust in Bitcoin had grown significantly, especially among millennials (people born from early 1980s to late 1990s). 

Although confidence in BTC dropped marginally in the 65+ age group, among millennials confidence has increased dramatically against three asset classes: government bonds, real estate, and gold. There has, however, been a slight increase in confidence in stocks against BTC. — they wrote.

Here is no such thing as a network effect in cryptocurrency industry, Cardano creator Charles Hoskinson believes. Speaking in an interview with Messari’s Ryan Selkis, he busted biggest myth in the space that any platform could achieve dominant levels of adoption.

Cardano creator Charles Hoskinson says the biggest lie in the crypto space is that anyone platform has achieved dominant levels of adoption.

It’s the biggest lie ever told in [the] space. It makes sense why that lie is so propagated, that Ethereum has achieved the network effect. They say ‘we’re the dominant platform’. Yes, you’re the dominant platform. It’s like saying you’re the biggest fish in a very tiny pond next to the ocean. No one has won. We’re all fighting right now in a small pond, he said.

Regulation

The South Korean cryptocurrency industry participants criticized the government decision to levy a «cryptocurrency tax.» They pointed out that the proposed scheme might push back the industry development. While Ministry of Economy and Finance and other relevant authorities tried to decide on a legal status of digital assets, the industry was considered as a tax-exempt safe haven for many years. However, recently the Finance ministry suggested imposing taxes on cryptocurrency transactions.

Yonsei University economist Sung Tae-yoon says the decision is unwise:

It is premature for the government to impose cryptocurrency taxes at a time when the market has not developed enough in a stable manner. From an economic viewpoint, he said, cryptocurrencies cannot be considered a universal asset like traditional paper currencies.