The cryptocurrency investing pioneer, Bitwise, has etched its name with the crypto elites owning to its numerous partnerships and detailed reports on global trading volumes and related scams. In the July monthly letter to investors, Bitwise presented its narrative on the ecosystem’s explosive growth in the month of June.
Citing Bitcoin’s rising trading value and Bitwise’s 23% increase in total returns, the official letter read,
“The “three F’s”—Facebook, the Fed (Federal Reserve) and FOMO (Fear Of Missing Out)—defined the cryptoasset market in June, sparking rising prices, significant volatility and a rekindling of the animal spirits that defined the crypto market in 2017.”
While the cryptoverse is well-versed with Facebook’s short-lived entry into the crypto space, Bitwise attributed Bitcoin’s bull run to the U.S. Federal Reserve’s decision to lower interest rates down to 2.1%. According to the company, the resultant concerns related to ‘store of value’ assets acted as the catalyst for Bitcoin’s $13,600 peak.
Against the backdrop of rising BTC prices and fiat’s falling interest rates, Bitwise claimed that,
“Retail enthusiasm piled on to rising prices and traders looking at technicals jumped in to see if new levels could be tested. Once a ceiling was found on June 26, the FOMO leg of the rally ended, and prices retreated back to lower levels.”
Although there were other key developments in the cryptospace, Bitcoin 33% spike remained the main highlight for the enthusiasts and long-term investors. In addition, LTC and ETH are the best performing altcoins for the last month, although Vitalik Buterin has shared his interest to improve ETH’s usability rather than value recovery.
Experts fear that the ongoing restrictions on Libra’s development and Binance exchange imposed by the U.S. government will eventually drive crypto innovation out of the country. As a result, leaders within this space have advised their U.S. citizens to not make any abrupt decision until further notice.