The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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It's Tuesday! Here’s what you need to know today in crypto: |
- Bitcoin rises to $71,000 for the first time since early April.
- Ether jumps nearly 20% to $3,700.
- Meme coins MOG and PEPE also surge.
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CoinDesk 20 Index: 2,536 +8.7%
Bitcoin (BTC): $71,207 +5.9%
Ether (ETC): $3,762 +21.0%
S&P 500: 5,308.13 +0.1%
Gold: $2,423 −0.4%
Nikkei 225: $2,423 −0.4% |
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Bitcoin rose above $71,000 during the European morning after analysts saw the possibility of an ether ETF being approved in the U.S. improving. BTC has climbed nearly 6% in the last 24 hours, eclipsing $71,000 for the first time since early April. The CoinDesk 20 Index (CD20), which offers a broad measurement of the digital asset market, rose more than 8.5% while ETH jumped almost 20% to over $3,700. The market movements caused more than $260 million in short liquidations, the most since Feb. 28. Ether shorts lost over $115 million, followed by bitcoin shorts at just over $99 million, Coinglass data shows. |
ETH has been buoyed by favorable regulatory developments that seem to indicate increasing chances of spot ether ETFs being approved by the SEC after the regulator asked exchanges to update 19b-4 filings, which propose rule changes. As a result, the ether implied volatility curve, which shows market expectations of future volatility across different strike prices and expirations, flattened as 25-delta risk reversals hit year-to-date highs above 18%, and traders heavily bought $4,000 calls for 24 May and 31 May, Presto Research analysts wrote. A Polymarket contract asking if an ether ETF would be approved by May 31 jumped from 10 cents to 55 cents, representing a 55% chance that approval will take place by then. Meme coins on the Ethereum ecosystem like MOG and PEPE surged on the increasing likelihood of ether ETFs being approved. Meme tokens are often seen as a leveraged way to bet on the growth of their underlying blockchain. MOG rose nearly 50% while PEPE climbed over 20%. “Established memes are generally high beta for the native token of the chain they’re on, and Mog has established itself as a winner on Ethereum,” Viro, a Mog core team member, said in an interview over Telegram. “I think the market sees that there’s quite a lot of room to catch up to Pepe, and that’s why you see the outperformance. If you think memes are good beta; you’ll go for the higher caps like pepe or you’ll slide further down the curve for mog.” |
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Market Insight: Ether ETF Hopes Drive Futures Open Interest to Record $14B |
Notional open interest, or the dollar value locked in the number of active ether futures contracts, climbed 25% to a record $14.05 billion in the past 24 hours, according to data source Coinglass. The previous lifetime peak of $13.2 billion dates back to March 15. The increase is a sign of a renewed influx of money into the ether market, mainly on the bullish side. The uptick in open interest alongside a price rise is said to confirm the uptrend. Late Monday, Bloomberg's ETF analysts increased the probability of the U.S. Securities and Exchange Commission (SEC) green lighting the spot ETH ETFs to 75% from 25%. Since then, the crypto community on X is speculating that the SEC might lean in favor of approving a spot ETH ETF, potentially signaling a broader constructive regulatory outlook toward crypto. |
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- The chart shows the most traded ether options on the crypto exchange Deribit in the past 24 hours.
- Call options at strikes well above ether's going market rate and expiring at the end of May and June have been in demand in a sign of bullish market sentiment.
- A call buyer is implicitly bullish on the market.
- Source: Velo Data
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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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