June 2020 Market Commentary

Bitcoin hit its monthly high in the first few days of June ($10,400) and was met with strong selling remaining below $10k for the balance of the month. The asset remained bound within the $9k to 10k range before ultimately finishing the month at $9,250, down 3.3%. ETH followed a similar course as it peaked early in June and finished down 2.5%. Smaller alternative currencies performed worse, dragging down the Bitwise BITX index.

Bitcoin has now maintained a tight range for two months with heavy buying and selling at both ends of the spectrum. The global macro environment certainly seems to favor the current Bitcoin narrative but price action suggests the bullish currents may not be as strong as the Bitcoin-as-digital-gold proponents suggest. A less popular view of Bitcoin continuing to trade over 50% below all time highs given the macro environment is a bearish long-term signal that global demand for digital “hard-money” may not be as widespread as hoped.