✍️ June Recap and what is to come?

Do we have enough bullish signs for the 3rd and 4th quarter of 2022.

July 10, 2022

Contents (3 min read):

  • ✍️ June Recap and what is to come?

  • 🤗 Should we feel confident about the rest of 2022?

  • 👨‍👩‍👧‍👧 Startupy - Community-curated search engine

  • 🏖️ IRAs, tax-sheltered accounts

  • 📰 ICYMI

  • 🙏🏻 Grateful for…

  • 💸 Coupons

✍️ June Recap and what is to come?

During the past 3 weeks, crypto has been mainly trading sideways. After several brutal months, a bit of a break has been more than welcome and even a 10% increase can make us feel bullish about the second half of the year.

Bitcoin fell 38% in June to a 10-month low and its volatility (91%) was one of the highest in the history of the asset.

Ethereum posted a loss of 46% last month and registered a 122% volatility.

DeFi also saw major losses ranging from 5% to 47% across the sector’s top assets.

In the NFT space, activity on OpenSea slowed down in June as average daily users and transactions fell by almost 5% and 0.1% respectively. NFT volume also saw a large decrease with average daily volume falling about 69%.

Bitcoin and Ethereum whale activity remained constant for the most part during June.

🤗 Should we feel confident?

As we mentioned in last week’s newsletter, the next BTC halving will be in 2024. Historically, BTC has entered bullish territory around 18 months before the next halving, which will be in September of this year.

The number of non-zero wallets on Ethereum (ETH) sets a new record at over 83 million.

Ethereum (ETH) is inching closer to its most crucial milestone in years, The Merge. This upgrade is set to move Ethereum (ETH) blockchain completely from a Proof-of-Work consensus to a Proof-of-Stake one.

  • This sets the stage for future scaling upgrades including sharding.

  • The Merge will reduce Ethereum's energy consumption by ~99.95%.

  • On July 7, 2022, The Merge was activated in Sepolia, the new Ethereum (ETH) testnet. In the coming weeks, The Merge is expected to come to Goerli - the last testing network before mainnet activation.

  • On June 30, Ethereum developers delayed the network’s difficulty bomb via the Gray Glacier update, which means The Merge won’t happen at least until September 2022.

  • Meanwhile, there are now more than 13 million Ethereum locked into the Beacon Chain worth $15.8 billion using today’s prices.

In addition to the delay, Ethereum network fees have remained low and at the time of writing, the average network fee is 0.0018 ETH or $2.16 per transaction. Today, a median-sized Ethereum network fee is 0.00078 ETH or $0.955 per data transfer. Furthermore, since August 5, 2021, or since the implementation of EIP 1559, approximately 2,523,831 ETH worth $8.4 billion has been destroyed.

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Conclusion

The FOMC (Federal Reserve) will meet on July 26th-27th to decide how many points will they increase interest rates. It is expected that they will add 50 basis points to continue their efforts of controlling inflation in the United States.

As inflation, hopefully, decreases, consumers will spend less due to cheaper prices which can lead to more savings and/or investments. Oil prices tumbled last week, falling below $100, this decrease may lead to lower gasoline prices, which usually has an impact on the prices consumers pay on most products (especially food) as everything becomes more expensive to transport when gas prices go up.

If consumer prices and inflation can be controlled (which is not an easy task due to several macro-economic factors) and other psycho-technological ingredients like the next BTC halving approaching, The Ethereum Merge, the end of miner capitulation, and the increase in the lighting network capacity, provide a positive impact, we may see a positive 3rd and 4th quarter.

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