GB Market Commentary 14/06/2021

By Alex Clark

After spending weeks languishing near $30,000, Bitcoin’s price saw a bullish turn of events yesterday as the price broke out above $39,000. A number of analytic tools, including the spent output profit ratio (SOPR) and stock-to-flow, all firmly point to an undervalued Bitcoin at current prices, although many analysts are still on the fence when it comes to determining whether the digital asset is ready to continue its uptrend. What we do know, is that Musk is responsible.

Musk has once again changed his mind about bitcoin, tweeting that Tesla will resume Bitcoin payments when the cryptocurrency’s clean energy usage reaches 50%. Said news has caused Bitcoin to jump to $39,160, which has brought about fresh accusations of pumping and dumping by Musk and reiterated the need for an investigation by the SEC. Tanzania is the latest emerging economy poised to embrace crypto in the wake of El Salvador’s announcement. Several other countries have also been making noise, including Panama, Mexico, Venezuela, Brazil, Nicaragua, Argentina and Malta.

The wave of adoption from corporates and countries is driving greater awareness and forcing other more reluctant players to act. This is particularly true among pension providers and wealth managers, many of whom are now working with GlobalBlock to offer crypto to their clients and to monetise this growing market.

Finally, Ethereum's network fees have dropped to less than $1 for both simple and complex transactions. Part of the reason for this reduction in network congestion is due to Polygon (MATIC), which has recently gained considerable traction. At present, Polygon has the greatest number of partnerships in the crypto space and has surpassed the Binance smart-chain in daily transactions. But despite being one of the best performing assets in the May crash, Polygon has since been on a consistent downtrend which may present great buying opportunity. If you’re interested in gaining exposure, feel free to ask a member of the GlobalBlock team for assistance.