In June, the cryptocurrency market experienced a mix of negative and positive price action. The SEC filed lawsuits against Binance and Coinbase, which initially led to a downturn in sentiment. However, things quickly turned bullish when BlackRock, the world’s largest asset management firm, filed a proposal for an exchange-traded fund (ETF) on June 16.
Following BlackRock’s move, there was a wave of ETF filings and increased institutional trading interest in digital assets. One significant development was the launch of EDX Markets, which had the backing of Wall Street giants Fidelity Investments, Citadel Securities, and Charles Schwab. This launch fueled the market for Bitcoin forks like Bitcoin Cash (BCH) and Bitcoin SV (BSV), as well as other proof-of-work (PoW) cryptocurrencies like Kaspa (KAS).
EDX Markets debuted with BTC, ETH, LTC, and BCH, and the inclusion of BCH sparked an uptrend across other Bitcoin forks. In fact, three Bitcoin forks were among the top gainers in June. Additionally, Kaspa and FLEX Coin (FLEX) saw significant gains. FLEX benefited from its integration with Open Exchange (OPNX), which is supported by the co-founders of the bankrupt Three Arrows Capital fund.
While Bitcoin saw monthly gains of 11.94% and traded above $30,000 for the first time since April 2023, FLEX Coin experienced a short-term boost due to its link with the co-founders of Three Arrows Capital. The token reached a 13-month high of $4.37 on June 27. However, despite the price surge, trading volumes remained low, raising concerns about volatility in illiquid assets.
Bitcoin Cash (BCH) also saw a significant increase in price after its listing on EDX Markets. While this listing acted as a positive catalyst, negative funding across perpetual swap markets and potential market manipulation on South Korean exchange Upbit were also driving factors. The token experienced a combined liquidation of $21 million in June, indicating higher-than-usual levels.
Bitcoin SV (BSV), which has a strong correlation with BCH, also saw gains in June. However, BSV has been in a downtrend since 2022, and its poor performance has pushed miners away from its ecosystem, making it vulnerable to a 51% attack.
Kaspa (KAS), a PoW consensus-based blockchain network similar to Bitcoin and Litecoin, benefited from improved performance and low liquidity. The team behind Kaspa hinted at the launch of a public testnet that would enhance scalability, fueling positive market sentiments. However, the token is primarily traded on unregulated exchanges with low volumes, making it susceptible to volatility and manipulation.
Lastly, eCash (XEC), a rebranded version of Bitcoin Cash ABC, also experienced a price rally in June. Similar to BCH and BSV, eCash lacks fundamental value and exhibits volatility due to illiquid market conditions.
Overall, the cryptocurrency market is still recovering from the SEC’s lawsuits against Binance and Coinbase. Tokens regarded as securities, such as Cardano, Polygon, and Flow, suffered losses over the month. The market is currently struggling to build bullish narratives, and the direction of altcoins will depend heavily on Bitcoin’s price action.
It’s important to note that this article does not provide investment advice and readers should conduct their own research before making any investment decisions.
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