Blockchain

physical token of bitcoin
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This month blockchain investors have seen results and the impact of a historic downturn for cryptocurrencies. Find out more in our monthly update.

A report from a market researcher in the digital asset space shows how historically bad the current downturn of cryptocurrencies really is.

The launch of a new exchange-traded fund (ETF) provides investors with a way to short the biggest cryptocurrency in the market.

Here the Investing News Network (INN) offers a recap of what to know about the blockchain business and cryptocurrencies in the month of June.


Current bear market called "historic" by experts

A report from FX Empire indicated how the currently seen downturn in the cryptocurrency asset market, or the crypto winter as it’s most commonly known, is the worst ever. This is according to a note from blockchain analysis firm Glassnode.

“As this financial pain sets in, a growing proportion of investors are liquidating their holdings, locking in record realized losses,” the full market report indicated.

The bear market crypto finds itself in at the moment has highlighted the recent mainstream investors joining and now seeing value dip below their expectations. FX Empire indicated one of the takeaways for the full report:

More specifically, on-chain analysis highlights how Bitcoin’s (BTC) combined current dip below the 200-day moving average (MA), negative deviation from realized price and net realized losses makes 2022, unequivocally, the worst in BTC’s history.

Bitcoin ETF launches with short option

ETFs issuer ProShares launched a new fund designed to offer an entry point for those looking to short bitcoin given the current market downturn.

The ProShares Short Bitcoin Strategy ETF (ARCA:BITI) launched at the end of the month.

“BITI affords investors who believe that the price of bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings,” ProShares CEO Michael L. Sapir said.

ProShares launched a more traditional bitcoin ETF last year as many other fund providers raced to launch these funds.

This fund achieves exposure into the digital asset through bitcoin futures contracts, a tactic previously criticized by fund makers in Canada.

Short selling is an investment strategy by which a bet is placed on the downturn in price of an asset. The assets are typically stocks, but can also be digital assets or the price of bitcoin and other coins.

The cannabis industry recently faced a strong bout against short selling amid a growing period for stock value and overextension from some companies.

Around the INN homepage

From around the web

  • Singapore wants to explore more digital asset avenues and the possibilities of embracing decentralized finance (DeFi) alongside DBS Bank, JPMorgan Chase (NYSE:JPM) and Marketnode.
  • A Bloomberg report indicated there is potential for financial trading service Robinhood (NASDAQ:HOOD) becoming available for purchase and a deal may be discussed for crypto exchange FTX to acquire them. That reporting was dispelled by comments from FTX management shortly after.
  • A new sports partnership with NFT offerings has been announced. The National Hockey League (NHL) is now partnered with NFT marketplace Sweet to make new offerings based on its players. The launch of these digital assets comes at a time when these products find themselves at a low point for pricing and interest amid the crypto winter.

One last thought…

Volatility is a key term associated with the blockchain market and particularly with the cryptocurrency market.

In a recent report, Reuters indicated the downturn of crypto assets has forced investors to re-evaluate what their intentions and strategies are when it comes to this investment field.

Risk tolerance and a solid investment thesis to abide by are pointed to as significant things for investors to set up within themselves.

“Some people set up their portfolios in the euphoria of the last few years, without much thought about a bigger plan,” Christine Benz, director of personal finance for investment research firm Morningstar, told Reuters.

Don’t forget to follow us @INN_Technology for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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