First Mover: Bitcoin, Ether Bounce After Disastrous Week for Crypto Market

Everything you need to make sense of the crypto markets and beyond

By the CoinDesk Markets Team

Edited by Lawrence Lewitinn, Managing Editor, Global Capital Markets

May 24, 2021

Sponsored by

Bitcoin (BTC)

+3.8% $36,478

Ether (ETH)

+6.8% $2,263

(Price data as of May 24 @11:00 UTC)

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Biggest Movers

These are the biggest movers in the CoinDesk 20 over the past 24 hours:

Gainers:

Aave (AAVE): 12.0%

Losers:

The CoinDesk 20 are 20 digital assets filtered from the larger universe of thousands of cryptocurrencies and constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges.

Market Moves

by Omkar Godbole

Bitcoin, Ether Bounce After Disastrous Week for Crypto Market

The crypto market is witnessing a relief rally on Monday, as bargain-hunting helps major coins regain some poise following last week’s drubbing.

Bitcoin, the top cryptocurrency by market value, is changing hands near $36,500 at press time, representing a 5% gain on the day. The rise comes after a 25% decline over the week ended May 23 – the second straight weekly loss and the biggest since March 2020, per CoinDesk 20 data.

Ether, the second-largest cryptocurrency, is trading 8% higher at $2,257 (up 7.6%), having dropped by 41% over the same period – its most significant weekly decline on record.

Other prominent coins like Binance’s BNB token, internet computer protocol, bitcoin cash, polkadot are seeing 8–10% gains. Coins associated with decentralized finance (DeFi) such as LINK and UNI are trading 22% and 13% higher, respectively.

Demand from wealthy investors looks to have brought relief to the battered cryptocurrencies.

Bitcoin fell to a 3.5-month low of $30,000 last week, marking a 53% drop from the record high of $64,801 reached on April 14. Meanwhile, ether fell to below $2,000.

The downturn was largely the result of selling by “weak hands” and short-term traders. “From the end of April until now, wallet addresses holding bitcoin for less than one month dropped from 5.06 million addresses to 4.37 million, a loss of 690,000,” the Defiant Newsletter said on May 18.

However, the number of addresses holding bitcoin for more than one year, dubbed as “holders” by IntoTheBlock, increased by 120,000 from 21.81 million to 21.93 million.

Bitcoin holders: Address holding coins for atleast a year (Source: IntoTheBlock)

Moving ahead, a V-shaped recovery to $50,000 and higher may remain elusive, as the recent sell-off has shaken investor confidence. Moreover, according to some observers, the market may soon receive more negative news out of China. On Friday, a top Chinese governmental body called for a crackdown on cryptocurrency mining, amplifying regulatory concerns.

Some industry experts believe the negative news has been priced in, and the psychological support at $30,000 is likely to hold.

Read the original story here:

Bitcoin, Ether Bounce After Disastrous Week for Crypto Market

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Technician's Take

by Damanick Dantes

Bitcoin Holds Short-Term Support; Faces Resistance At $40K

Bitcoin (BTC) remained under pressure over the weekend as traders react to China’s latest news to tighten crypto regulation. The cryptocurrency is down about 36% month-to-date and was trading around $37,000 at the time of writing. Price recoveries should remain limited to $40,000 as the broader uptrend weakens.

Slowing momentum has been the dominant theme this year as bitcoin failed to maintain all-time highs. Long term sell signals were in place before headlines accelerated price declines, which preceded a gradual and then sudden capitulation of long positions.

Four-hour bitcoin chart shows short-term support and resistance levels with RSI (Source: TradingView)

Original story found here:

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BOLO

Be on the look out for some of these upcoming events at Consensus 2021:

Special Address by Dr. Lael Brainard

We're honored to be joined by Dr. Lael Brainard of the Federal Reserve Board of Governors. She will give an address discussing her latest thinking on the topic of digital currencies and will take questions from Michael Casey, CoinDesk's chief content officer.

13:30 UTC (9:30 a.m. ET)

First Principles: Ray Dalio on Money, Monetary Policy and Bitcoin

As the founder of Bridgewater Associates, the largest and most successful hedge fund of all time, Ray Dalio’s thoughts on money, markets, economics and socio-political trends are sought after by leaders of business and government worldwide. Dalio will join us to offer his newest thinking on the future of money and monetary policy in the post-COVID environment. He will also share his evolving views on how disruptive assets such as bitcoin might fit into the global financial system that will emerge from this moment.

14:30 UTC (10:30 a.m. ET)

Store of Value Generation: Psychology, Collecting and Non-Fungible Tokens

Well before he got into wine and other collectibles, Gary Vaynerchuk's first childhood hustle was collecting and trading sports cards. Today, he's become a prominent proponent of NFTs as a store of value asset and engagement medium. He joins Joe Pompliano, author of the Huddle Up sports business newsletter, to discuss the psychology behind digital collecting and how it applies to sports and beyond.

A message from CoinDesk

This Week at #Consensus2021

Will bitcoin continue to pump? Is a pullback around the corner? Is ether a better way to position?

This week at Consensus by CoinDesk, our virtual big-tent conference, we help investors hone their skill sets with trading and yield generation strategies. investment theses and market intelligence and get up to speed on crypto market developments.

Join our Explorations track "Trade Secrets," sponsored by Bitstamp, with Philip Gradwell of Chainalysis, Matthew Roszak of Bloq, Darius Sit of QCP Capital and more at Consensus by CoinDesk, running to May 27. Register today.

ICYMI

In case you missed it, here's the most recent episode of "First Mover" on CoinDesk TV:

Crypto Markets Stabilize; Who’s Buying and Who’s Selling?

The most critical topics in the crypto and blockchain discussions come to the forefront as this year's Consensus by CoinDesk virtual conference kicks off Monday. Our "First Mover" hosts highlight the keynotes and sessions that they and much of the crypto world will be watching, including presentations by Ray Dalio of Bridgewater Associates, Dr. Lael Brainard of the Federal Reserve, Former Treasury Secretary Lawrence Summers and ARK Invest's Cathie Wood. Also, joining the show to discuss the latest markets and business news are Bittrex Interim CEO Stephen Stonberg, QCP Capital CEO Darius Sit, and a special appearance by Danny Green of the Philadelphia 76ers with his NFT story.

Latest Headlines

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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.

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