Will it be an Altcoin Summer??

Since January, there has been a considerable rise in ETF filings in the U.S. At least 30 companies have filed applications with the SEC, seeking to list their exchange-traded funds, as regulatory guidelines have become more transparent.

The new applications are not the traditional ETH or BTC; they are altcoins (everything except BTC or ETH) and are seeking institutional adoption. The most prominent coin applications are Solana, XRP and Litecoin, but some meme coins have also been filed. DOGE is leading the way for memes, with TRUMP following a close second.

Once these ETFs get approved, it does not mean that their price will rise substantially, as the ETH ETF proved in the last year. Inflows and outflows to the ETFs can be sporadic, and because network fees on ETH are very low, they have lost out to decentralized exchanges. 

Demand for BTC ETFs outshines that of ETH ETFs, and this may also be the case for altcoin ETFs once they are approved. One thing is for certain: traditional institutional investors have a keen interest in ETFs, and this relatively new financial instrument in cryptocurrency could increase their exposure.

BTC News This Week

Bitcoin reached USD 110,000 several times this past week but was unable to break through the tough resistance of USD 111,000. The coin has hovered around 106k/107k for the past few days which could be due to the heightened intensity of conflict in the Middle East and the threat of higher fuel prices. 

While the Fed has paused an interest rate increase, a surge in oil prices could upend the current inflationary status. Additionally, the U.S. dollar has reached its lowest level in three years, and if it spikes substantially, inflation is likely to become imminent within the next six months.

Although BTC is currently in a holding pattern and it has failed to break out to new all-time highs, the market in general remains bullish. At the time of writing, BTC was trading at 106k USD after pulling back from 107k USD.

BCH to Lead the Altcoin Summer?

Bitcoin Cash surged today, with a 3.4% increase since yesterday. Investor interest has spiked in the past week (almost 11%), fueling the BCH rally. The altcoin has broken through key resistance levels and looks poised to break out to higher highs, riding on the coattails of Bitcoin.

BCH has been in a seven-year decline from its all-time high, and the current sentiment is that it could surpass those highs by the end of 2025. The altcoin has increased by 90% since April and is now approaching a resistance level of USD 490. If it can break through this level, the next major resistance level is 520 USD and is currently trading at 469 USD. Most analysts and long-term indicators suggest that this bullish trend will continue.

Tron Going Public

One of the biggest stories in the cryptocurrency market today is Justin Sun’s announcement that Tron will go public. He announced a reverse merger with SRM, a Nasdaq-listed company. Sun will invest USD 211m in the IPO, and it has been reported that Eric Trump will be part of this venture, Tron Inc., although he denies any involvement.

The general setup of the company will issue 100k B shares (200m shares at $ 0.50 USD) and 220m warrants (to acquire up to 220m common stock shares at $ 0.50 USD). The $ 220 million from Sun will provide the treasury of TRX to attract investors and secure global adoption of their core values – digital and blockchain innovation. 

TRX is currently trading at USD 0.2776, with a marginal price spike of 2.25% today. Tron is the 9th largest digital blockchain, worth over $ 25 billion USD, and looks poised to break out due to the positive news today.

Whales Buying Ripple

Ripple has experienced a significant surge in interest in June. The increased activity is due to strategic investor interest from publicly listed companies, which are using XRP as a treasury reserve.

Daily active XRP addresses were close to 300k in the past week (usual traffic is around 35k), reflecting a massive interest in the XRP ecosystem. Whale wallets have increased to over 2,800, with each wallet holding over USD 1 million, putting XRP assets at a 12-year high.

The average value of each Whale wallet is USD 2.3 million, suggesting increased interest from high-net-worth and institutional investors. Also, XRP ETFs are close to being realized; one is set to be launched tomorrow by Purpose Investments in Canada.

XRP has remained relatively flat over the past week and is currently trading at $ 2.21 USD, with strong resistance at $ 2.33 USD.

Will the Market Rise on the Back of BTC?

The market appears poised to break out if BTC reaches above USD 110,000, but several factors stand in the way. The Middle Eastern conflict, the rise in oil prices, and the upcoming FOMC meeting on June 19th… the current dip in the market seems like a retracement, but any of the above factors could keep the market in the red.