🤔 Bitcoin's 200d MA Breach: A Crypto Earthquake or a Teacup Tempest? 🌪️

Good Morning!

Crypto's MIA in the UK election! Labour's leading with 42%, Conservatives trailing at 19%, but both parties are tight-lipped about digital assets. Previous crypto-friendly policies are now in limbo. Industry insiders hope post-election won't derail progress on stablecoin regulations and other crypto initiatives. Will the UK's crypto hub dreams survive the ballot box? It's a political cliffhanger for the digital asset world!

In today’s email:

• Elections: Key elections loom, from UK 🇬🇧 to USA 🇺🇸 

• Bitcoin: Bitcoin now trading around $58k, breaches key 200d MA

• MMF: Money-market funds hit a new record $6.15 Trillion

• Commodities: Cash rich energy traders buying oil refineries

👇Join: Our exciting community subreddit to join the conversation:

THE BIG IDEA

Global markets show mixed signals as US rate cut hopes rise and key elections loom.

The financial world's spinning faster than a crypto trader's hard drive. European stocks are playing it cool, like a poker face at a high-stakes game, while Asian shares are partying like it's 2022 - literally hitting a two-year high. Japan's Topix is breaking records faster than an overzealous DJ.

The yen's bouncing back after hitting a 38-year low - talk about a midlife crisis! It's like watching a financial Benjamin Button in action. Meanwhile, the dollar's on a losing streak that'd make a Vegas gambler wince.

Across the pond, the US is serving up some economic humble pie. The services sector's contracting faster than a snail on a salt flat, and the job market's softening like butter in the sun. Traders are betting on Fed rate cuts with more enthusiasm than a kid in a candy store. September or November? Place your bets!

Political drama?

We've got it in spades. All eyes are on Biden - will he drop out of the presidential race? Wall Street's playing musical chairs with assets, just in case Trump makes a comeback. It's like a high-stakes game of "What If?"

The UK 🇬🇧 and French 🇫🇷 elections are on the radar, but they're just appetizers. The main course? Friday's US jobs report. It's like the Super Bowl for economists - expect nail-biting action!

Commodities aren't missing out on the fun. Gold's breaking free from its trading range like a rebellious teenager, while iron ore's climbing higher than a mountaineer with a point to prove.

In this financial circus, the Fed's ringmaster Goolsbee is keeping his cards close to his chest. He's waiting for more data like a chef waiting for the perfect moment to flip a pancake. Will he stick the landing? Only time will tell!

So, buckle up, investors. This market's got more twists and turns than a pretzel factory. Keep your eyes peeled and your trading fingers ready - it's going to be one wild ride!

MARKETS AT A GLANCE

TOP NEWS

Money-market fund assets hit a record $6.15 trillion, with $51.2 billion inflow in one week.

Fed's steady rates and inflation concerns drive the surge. Government funds saw the biggest increase, while prime funds also grew. Experts expect continued growth until Fed signals rate cuts.

Cash-rich energy traders are buying refineries from big oil companies.

These acquisitions provide traders with better market insight, more trading options, and increased influence in oil markets. The trend is driven by traders' record profits and oil majors' desire to reduce emissions and focus on core assets.

CRYPTO

Bitcoin takes a nosedive, dragging the crypto market down with it.

Hold onto your digital wallets, folks! Bitcoin's doing a bungee jump without the cord, plummeting below $59K. The culprit? Mt. Gox's ghost and jittery miners. This crypto rollercoaster wiped out $230M in long positions faster than you can say "HODL."

Ether and Solana are joining the freefall party, with the CoinDesk 20 index down 4.8%. Dogecoin's barking up the wrong tree too, down 8%. Traders are bracing for a gloomy Q3, thanks to Mt. Gox's impending bitcoin dump. It's like watching a slow-motion crypto car crash!

Bitcoin breaks crucial support, with spot selling pressure outweighing ETF demand and causing a $24 billion market dump.

Bitcoin's riding a wild bronco, breaking its 200-day trendline for the first time in 10 months. We're seeing a $24 billion sell-off rodeo, with spot selling as the main buckaroo. ETFs? They're just spectators in the stands. The $58K support level's getting trampled, and long liquidations are piling up like tumbleweeds. Next stop? Maybe $50K, if this bearish momentum keeps galloping.

DecenTrader noted, “If Bitcoin does breakdown then $51k - $52k remains the area where there is a significant amount of 3x, 5x, and 10x longs liquidity. To the upside, the shorts liquidity is at $76k-78k.”

Bitcoin miners' capitulation signals potential market bottom, mirroring conditions after FTX's collapse.

Miners are feeling the squeeze! We're seeing capitulation levels reminiscent of the FTX aftermath. Daily revenue? Plummeted from a cushy $79 million to a measly $29 million post-halving. Hashrate's down 7.7%, with inefficient miners throwing in the towel. But here's the kicker: this miner meltdown might just be signaling a market bottom. Are we on the cusp of another bounce from the ~$60K springboard? History suggests it's possible. Keep your eyes peeled!

Mt. Gox redemptions could spell trouble for Bitcoin Cash, not Bitcoin, due to massive BCH selling pressure and low liquidity.

The Mt. Gox saga's got a new twist. Forget about Bitcoin taking a hit – it's Bitcoin Cash that's in the hot seat. We're talking $73 million worth of BCH about to flood the market, a whopping 24% of its daily trading volume. BTC hodlers? They're sitting pretty with diamond hands. But BCH? It's looking like an airdrop ripe for dumping. Time to short BCH and long BTC? The market's about to get wild!

GOLD

Citi and UBS bullish on gold, forecasting price surge due to rising investment demand and geopolitical uncertainties.

Gold's got that Midas touch again! Citi's crystal ball 🔮 shows gold hitting a dazzling $2,700-3,000 per ounce by 2025. Why? Investment demand's gobbling up 85% of mine supply, with China and central banks leading the gold rush.

UBS is joining the glitter party, calling gold their "most preferred" hedge. With potential Trump tariffs, debt inflation, and global tensions on the horizon, gold's looking shinier than ever. But watch out for China's retail demand and Fed moves – they could tarnish the outlook.

DAILY ECONOMIC CALENDAR (ET)

MEME OF THE DAY