Chart of the Day
Goodbye, Mayhem. The long and tumultuous month of May has finally come to an end. A literal new start saw Bitcoin etching the largest daily gains in a week, as the price rebounded from seven-day lows. The jump might have been spurred by good news from the institutional adoption front, although on-chain metrics might have sent out mixed signals. Key statistics of the current supply dynamics point to long-term holders in profit constituting 69% of the total supply, with strong hands returning to accumulation mode; a future supply squeeze is perhaps brewing. Yet, in previous cycles, the prospect of long-term holders taking profit may signal the start of more bearish trends.
Talk of the Town
Renminbi Rumble. The U.S. dollar’s hegemony is under fire as China inches closer toward the imminent launch of its digital currency. Bridgewater Associates’ Ray Dalio believes that China’s digital yuan will be a viable alternative for many investors and has the potential to become a top reserve currency. Currently, the greenback makes up over 60% of all known central bank foreign exchange reserves. The yuan? 2%. Dalio, however, predicts that the yuan’s share will increase rapidly to around 10-15% in the next decade.