Ethereum funds have flowed out sharply, and the Fed meeting is about to be cautious
After the festival, the news on the market has not changed much, but some small continuous changes are worthy of everyone's attention.
Some time ago, MicroStrategy was rumored in the market to "issue bonds to buy coins". Yesterday, MicroStrategy announced that it had completed the issuance of US$500 million in senior notes, due in 2028, with an annual interest rate of 6.125%. The net proceeds from the note offering were $488 million, which will be used to purchase bitcoin.
Not only that, according to further news, MicroStrategy stated in a filing with the US Securities and Exchange Commission that over time, it may sell shares worth $1 billion, and the proceeds can be used to buy Bitcoin. What is certain is that MicroStrategy will basically be gone forever on the road of Stud Bitcoin, and it will be the power of the company.
But don’t think that looking at MicroStrategy’s red eyes now is a big loss. If you look at the total holdings, the current price of 40,000 US dollars is still a lot of floating profit. After all, MicroStrategy’s average holdings of more than 90,000 bitcoins The cost is only about 20,000 US dollars, and it is more likely that this company believes that the current valuation of Bitcoin is too low, and it is worth holding a large amount of Stud.
El Salvador's adoption of bitcoin as legal tender is also growing, Dante Mossi, head of the Central American Bank for Economic Integration (CABEI), said on Monday that the bank will provide technical assistance to El Salvador to help bitcoin become legal tender. Additionally, with El Salvador passing laws making Bitcoin a legal tender, lawmakers in many Latin American countries have expressed interest in Bitcoin, including Paraguay, Argentina, Panama, Brazil, and Mexico, while Tonga and Tanzania have also reportedly compared Bitcoin has expressed interest.
If El Salvador can achieve unexpected results in the process of using Bitcoin as a legal currency, it is indeed worthy of other small countries or countries with unstable legal currency to follow suit. When this situation gradually becomes popular, will we face such problems in the future? , that is, to treat Bitcoin as a foreign exchange currency rather than an investment asset, but it is not known whether such a foreign exchange currency with such large fluctuations will be recognized by various countries.
Looking at the information on Ethereum, according to CoinDesk on June 15, a report from CoinShares on Monday stated that the withdrawal of funds from digital asset investment funds slowed down last week. While net redemptions from Bitcoin funds have decreased, some investors appear to be uninterested in Ethereum. Last week, digital asset funds had a net outflow of $21 million, down from $94 million the previous week; Bitcoin funds had a total outflow of $10 million, well below the previous week's record $141 million. Meanwhile, Ethereum funds saw their largest outflows on record (since 2015) last week, totaling $12.7 million.
This situation is indeed worth noting. It basically reflects the amount of funds in different currencies, especially Ethereum, which has a relatively large short-term impact. The uncertainty lies in whether the outflow from Ethereum will flow to Bitcoin in the later stage. As long as you are still in the field, you don’t have to worry about it. It’s nothing more than the currency that rises first attracts funds first, and there is still a chance to flow back later. Just a little attention in the short term.
Going back to the market, today’s market is relatively normal during the day. At 8 o’clock in the morning, the market tried to rush higher, but when it reached around $40,900, there was no momentum to continue upwards. Instead, it retreated and moved around $40,000.
It is not surprising that there is relatively little movement during the day, and it is highly likely that the market will be determined at night. However, in the past two nights, you still need to pay attention. The Federal Reserve meeting is coming soon, and the wind direction of the market is not very good. It may affect risky assets such as stocks and Bitcoin. Holding unfavorable sentiments, therefore, there is no need to conduct too many spot operations at the moment. In addition, it is recommended not to chase higher prices. After the Fed meeting this week is over, it may trigger the next trend of the market. Be cautious in the past two days a little.
