Recently, ICBC International released a report comparing Bitcoin to "digital gold" and Ethereum to "digital oil". ICBC International pointed out that Bitcoin's scarcity is similar to that of gold. The total supply of Bitcoin is strictly limited to 21 million pieces, and this fixed supply makes Bitcoin have anti-inflation characteristics similar to gold. In addition, Bitcoin's decentralized nature and global recognition also make it an attractive means of storing value.

Ethereum is called "digital oil" based on its wide range of application scenarios. Ethereum is not only a cryptocurrency, but also a decentralized platform that can be used to build and run smart contracts and decentralized applications (DApps). This wide range of applications makes Ethereum an important position in the blockchain ecosystem. From an investment perspective, this report from ICBC International provides a new perspective on the cryptocurrency market. As a value storage tool, Bitcoin has a more stable price trend, while Ethereum has higher growth potential due to its technological and application innovations. ICBC International's report provides a new framework for us to understand Bitcoin and Ethereum. Bitcoin, as "digital gold", and Ethereum, as "digital oil", play an important role in their respective roles.

In 2023, the asset valuations of cryptocurrency venture capital companies have increased significantly, reflecting the market’s confidence and expectations in this emerging field. Specifically, Polychain Capital’s fund value nearly doubled from $2.61 billion to $5.04 billion. Not to be outdone, Blockchain Capital announced an additional US$580 million in funds in September 2023, increasing its total assets under management from US$1.74 billion to US$2.36 billion.

Paradigm's fund is worth more than $10 billion, while Haun Ventures' asset valuation exceeds $1.5 billion. Andreessen Horowitz, as an industry giant, has also invested $56 billion in cryptocurrencies. These data show that venture capital in the cryptocurrency field is growing rapidly and the inflow of funds is accelerating. First of all, we need to analyze the driving forces behind these growths. In 2023, the overall cryptocurrency market rebounded, and the prices of major cryptocurrencies rebounded, attracting the attention of a large number of investors. In addition, the application scenarios of blockchain technology continue to expand, from financial services to supply chain management, blockchain is becoming more and more popular. This provides venture capital companies with more investment opportunities.

Data shows that the balance of Bitcoin and Ethereum users on centralized exchanges has fallen to a four-year low. Specifically, the balance of Bitcoin has fallen to less than 2.3 million, equivalent to about $158 billion, while the balance of Ethereum has fallen to less than 16 million, equivalent to about $58 billion. This can be interpreted as a bullish signal for the future.

First, we need to understand the reasons behind this change. This phenomenon is mainly due to investors choosing to wait for higher prices in the bull market. Therefore, investors are more inclined to transfer cryptocurrencies to private wallets rather than keep them on exchanges. Such behavior, to a certain extent, reflects investors' confidence in the market, and they expect prices to rise further. However, we cannot ignore the risks that this phenomenon may bring. The reduction in the balance of centralized exchanges means a decrease in the liquidity of the market. In the case of increased market volatility, low liquidity may lead to sharp price fluctuations and even cause market turmoil in the short term. In addition, although this heralds a rise in prices in the long run, there is still uncertainty in the short term.

According to a new report from K33 Research, Bitcoin’s correlation with the U.S. stock market has reached its highest level in 18 months. Specific data shows that the 30-day correlation coefficient between Bitcoin and Nasdaq reached 0.64 last week, which is the first significant increase since 2022.

It is worth noting that this high correlation means that Bitcoin price movements may be affected by fluctuations in the U.S. stock market. In the past two weeks, bullish offshore traders' Bitcoin positions have been in a loss, which puts the market at risk of potential long squeeze. Long squeeze risk refers to the situation where investors holding large buy positions are forced to close their positions when market prices fall, further exacerbating price declines.

In addition, the net inflow record of US spot Bitcoin ETF ended after 19 days, which had a certain negative impact on market sentiment. The net inflow of ETFs is usually regarded as a bullish signal of the market, and its end suggests a shift in investor sentiment. From a macroeconomic perspective, the increase in the correlation between Bitcoin and US stocks stems from the increased linkage of global financial markets. In the current economic environment, investors' demand for risky assets and the choice of safe-haven assets have changed synchronously, resulting in the convergence of Bitcoin and US stocks.

The U.S. spot Bitcoin ETF had a net outflow of 2,881 coins yesterday (June 11), worth $200 million.

BTC: Yesterday, a negative line with a long lower shadow was closed. Currently, it has received short-term support at the lower track of the daily BOLL. Today, there is a small super rebound, but it may not stabilize in the short term. After a small rebound, the market may continue to test the 5-month average or the 10-month average. Wait patiently.

ETH: Linked to Bitcoin trend.

PEPE: Yesterday, the market closed with a positive line with a long lower shadow and a large trading volume, indicating that there is capital intervention in the short term and an oversold rebound may occur in the short term.

Today’s hot topics: Solana ecosystem; Meme.

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