Fed unequivocally states no rate cuts till inflation falls to 2% 🔻

Welcome to the daily Coinsauce Newsletter, its good to be back. Lets get straight into today’s newsletter!

📅 Today

🔍️ Market Outlook

• Overall Bias - Neutral 📈 

• Bitcoin is dipping, but has held it’s crucial support between $66,000 & $67,200 so far on the daily time frame. As long as we are above this level, things are good, and Bitcoin’s up-trend remains intact.

• A break of $66,000 with a daily candle close could mean more chopping around between $60k-$70k.

• There are multiple wicks as resistance for BTC as it is now aiming for new all-time-highs. There is no particular price point to pin-point for a rejection.

• Dominance is in an up-trend today, and if it breaks 55.95%, alts can slow down significantly, especially if BTC is still consolidating.

• Overall, BTC looks strong fundamentally. We have great ETF inflows, neutral funding rates, ETH ETF approvals, liquidation map more or less neutral, and a lot of leverage flushed out of the market during the 2 month consolidation phase.

US Inflation slows down, yet no signs of rate cuts🙏 

The annual US inflation rate fell to 3.3% for the month of May 2024, down from 3.4% in April and below the expected 3.4%.

The Federal Reserve stated its intention that they won’t cut rates until inflation drops to 2%.

The Fed kept interest rates unchanged and now expects only one rate cut this year, down from the earlier prediction of three, due to still high inflation.

Terraform Labs goes down under 🔻 

Terraform Labs will pay $4.47 billion to settle a US SEC lawsuit over its 2022 Luna collapse, which caused $40 billion in investor losses.

A New York federal judge is reviewing the settlement after a jury found Terraform and co-founder Do Kwon liable for fraud in April. Kwon also faces criminal charges over the sale of UST stablecoin.

Under the settlement, Terraform will pay $3.59 billion plus interest and a $420 million penalty. Do Kwon is required to transfer $204.3 million to to the Terraform bankruptcy estate for distribution to investors.

📕 Educational

Simulating the DCA results of major altcoins compared to BTC, assuming an equal amount was invested daily from the 2020 BTC halving to the 2021 Cycle Top (549 days) :

BTC: 235% (Baseline)

Winners (Outperformed BTC):

1. SOL: 8816% (37.51x BTC performance)

2. MATIC: 4321% (18.38x BTC performance)

3. BNB: 1258% (5.35x BTC performance)

4. ADA: 990% (4.21x BTC performance)

5. ETH: 631% (2.69x BTC performance)

6. ATOM: 412% (1.75x BTC performance)

7. DOT: 280% (1.19x BTC performance)

8. NEAR: 264% (1.12x BTC performance)

Losers (Underperformed BTC):

1. XRP: 212% (0.90x BTC performance)

2. LINK: 164% (0.70x BTC performance)

3. UNI: 125% (0.53x BTC performance)

4. AAVE: 56% (0.24x BTC performance)

5. FIL: -3% (-0.01x BTC performance)

Conclusion:

Only a few large-cap altcoins managed to sustainably and significantly outperform BTC and ETH, suggesting that higher risk-adjusted returns were achieved BTC & ETH, rather than altcoins.

📊 Stats

📈 Chart of the day

• Rationale & Confluences :

• 4H discount zone

• 4H horizontal support

• 4H bullish order-block

• 4H vu-manchu divergence

• Source : Cointraction 

🤣 Meme of the day

Wen 80k 😅 

That concludes our update for today!

We appreciate you joining us for the latest news. Our aim is to provide insights and highlights that keep you well-informed and ready. Remember to follow us on social media for additional updates and giveaways. Happy trading, and see you next time!

Disclaimer : None of the content shared in the newsletter is financial advise. Always do your own research before investing.