Bitcoin might be on another precipice. A technical analyst says another crash could be coming for the world's biggest crypto.
Happy Friday readers. Phil Rosen here - boy am I glad to see you today.
As a last farewell before the long weekend, I wanted to share some chipper news...
But that's harder to come by in a bear market. Instead, I explain the crypto downturn and why a top analyst says Bitcoin still has plenty of room to fall (although it only dipped below $19,000 yesterday).
Here we go.
Programming Note: There will be no newsletter on Monday, July 4th. Enjoy the long weekend.
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Bitcoin fell well below $20,000 over the weekend before recovering somewhat on Monday. Anadolu Agency/Getty Images
1. The world's largest crypto might just be getting started - with its dramatic demise, that is. According to Fairlead Strategies' Katie Stockton, Bitcoin's negative momentum points to another 27% drop as it tests a key support level.
“Bitcoin has stabilized over the past week after reacting to short-term oversold signs, supporting a short-term neutral bias within a bearish long-term trend,” Stockton said.
On Thursday, bitcoin slipped about 5% and fell below $19,000. If the crypto breaks the $18,300 support level, Stockton said it could free fall to its 2019 highs of around $13,900.
Bitcoin’s nosedive and subsequent defeat in the wider crypto space has sparked a series of implosions that have swept through the market this year.
Most recently, hedge fund Three Arrows Capital defaulted on a $670 million loan that included around 15,000 bitcoin and $350 million in stablecoin USDC.
Meanwhile, crypto exchange CoinFlex this week became the latest in a string of firms to announce they would halt customer withdrawals as it deals with a $47 million bad debt.
Weak investor confidence has triggered a wave of deleveraging in the sector. Retail investors are reducing their margin accounts, and miners are selling bitcoin after using it as leverage to expand their operations. However, there are some analysts who believe the deleveraging cycle is nearing its end.
Companies in the industry have had great success, but giants like Sam Bankman-Frieds FTX are seeing opportunities. Bankman-Fried crypto exchange is reportedly in talks to buy struggling crypto lender BlockFi. Citing a source, CNBC said FTX is expected to pay around $25 million, 99% below BlockFi's latest private valuation. However, BlockFi CEO Zac Prince took to Twitter to comment on the report. It comes after The Block reported that FTX was also interested in a deal with Celsius but has left due to the state of its finances.
Vladimir Putin Russia
Vladimir Putin's Russia managed to avoid default on Tuesday. Alexander Demyanchuk/AP
2. US stock futures fell early Friday after the S&P 500 ended its worst first half since 1970. You can see the latest market movements here.
3. On the list: Nomad Holdings Ltd., Weathernews Inc. and more all reports. Also, keep an eye out for the ISM report on Business Manufacturing PMI, due out by the Institute for Supply Management at 9:00 am ET.
4. These are the stocks likely to outperform in a market grappling with recessionary risks and high inflation. That's what UBS analysts say, according to which the uncertain market can harbor risks. Check out their list of 33 companies.
5. Analysts forecast Bed Bath & Beyond to fall another 50%. The stock's "dumpster fire" in the first quarter means its days may be numbered. As one analyst put it, "We're in the end days."
6. RBC's commodities chief said oil prices could continue to rise thanks to OPEC fighting and higher demand. The oil cartel is lacking additional supplies to meet calls for more production, the analyst said, and China's economic reopening will boost demand. Here's what you want to know.
7. A leading Indian company paid for Russian coal in yuan. And traders said more buyers may be turning to China's currency for deals with Moscow, according to a Reuters report. One trader said he had never heard of an Indian company paying in yuan for international trade in his entire 25-year career.
8. A retiree who quit his job at age 26 explained how he's built an investment portfolio he can make a living from. His annual payout rate remains below average stock market growth -- and he shared what funds he's bought and how he's growing his holdings.
9. After an abrupt pause in the recent rally, Evercore has broken down its top stock picks. Julian Emanual said bear market rallies are treacherous, but they are big and strong enough for investors to trade profitably. These are the company's 18 names it's eyeing -- and it shared an options trade that's geared for profit.
10. It looks like inflation has finally peaked. Core inflation, which excludes food and energy prices, slowed more-than-expected in May. Take a look at the new economic data.
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Curated by Phil Rosen in New York. (Feedback or tips? Email email@example.com or tweet @philrosenn).
Edited by Max Adams (@maxradams) in New York and Hallam Bullock (@hallam_bullock) in London.
Read the original article on Business Insider
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