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. |
- Crypto markets are muted after Musk-Trump X space.
- Bitcoin likely to fall by $5,000 then rise by the same amount, analyst says.
- BTC, ETH ETFs recorded inflows on Monday.
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CoinDesk 20 Index: 1,900 −1.6% Bitcoin (BTC): $58,871 −1.5% Ether (ETH): $2,644 −1.0% S&P 500: 5,344.39 +0.0% Gold: $2,463 +0.0% Nikkei 225: 36,232.51 +3.45% |
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Meet ETHA, The iShares Ethereum Trust ETF. ETHA enables investors to access Ethereum, the second-largest cryptocurrency, within a traditional brokerage account.1Learn More 1 Source: The Block, as of May 21, 2024. Ethereum’s market capitalization, which stands at $450 billion is measured using its native token, ether. For an ETHA prospectus, click here iCRMH0824U/S-3782218 |
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The digital asset market was muted aftercrypto went unmentioned during the X space between Elon Musk and Donald Trump. BTC traded at around $58,750 during the European morning, down just over 1% from its price of 24 hours ago. The broader crypto market, as measured by the CoinDesk 20 Index (CD20), dropped by a similar amount. The two-hour interview between the X owner Elon Musk and the Republican presidential candidate attracted over 1 million listeners and was highly anticipated by the crypto community, but cryptocurrency didn't come up. On Polymarket, bettors priced a 65% chance of "crypto" being mentioned with over $600,000 in stakes on the topic. |
One bitcoin analyst sees renewed losses in the short term, with the price falling by $5,000 from the going market rate of around $58,500. "Bitcoin is likely to fall by $5K rather than rise by the same amount," Alex Kuptsikevich of FxPro said in an email. Kuptsikevich's bearish take stemmed from bitcoin's failure to keep gains above $60,000 in the wake of the death cross, a bearish crossover of the 50- and 200-day simple moving averages. "Bitcoin does not break above $60K and faces selling after it tried to break above the 50- and 200-day MAs late last week, showing seller dominance," Kuptsikevich noted. He added that the 14-day relative strength index (RSI) no longer shows oversold conditions, which means scope for another leg lower, consistent with the recent seller dominance above $60,000. Data from SoSoValue shows thatdaily net inflow into the U.S.-listed spot ether ETFs hit $4.93 million on Monday. Grayscale's two funds posted no flows, while Fidelity's FETH hit $3.98 million in inflow, Franklin Templeton's EZET posted $1 million, and Bitwise's ETHW clocked $2.86 million in positive flow. VanEck's ETHV was the only one that posted an outflow of $2.92 million. Meanwhile, bitcoin ETFs posted a collective daily inflow of $27.87 million. Of the lot, Grayscale's GBTC had an outflow of $11.7 million, while Bitwise's BITB had an outflow of $17 million. |
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Market Insight: Key Stablecoin Metric Slides to Lowest Level in 18 Months |
Bitcoin has quickly recovered to nearly $60,000 after a debacle last week that saw prices drop below $50,000 at one point. The recovery may have legs, as the "exchange stablecoins ratio," which measures the number of BTC held in wallets tied to centralized exchanges relative to stablecoins, suggests reduced selling pressure. The ratio has dropped to its lowest since February 2023, extending a prolonged downtrend that began in June last year, according to data tracked by blockchain analytics firm CryptoQuant. "This could indicate reduced selling pressure on bitcoin as fewer traders are converting their BTC into stablecoins," CryptoQuant told CoinDesk in a Telegram chat. "Additionally, this could suggest a bullish market sentiment, where traders seem to be holding BTC in anticipation of future price increases," CryptoQuant added. |
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- The median gas price for a low-priority transaction on the Ethereum blockchain has dropped to less than two gwei, the lowest in five years, and down from 83 gwei in March.
- Its a sign of dwindling activity on the Ethereum mainnet and weakens the bullish case for the blockchain's native token ether.
- Source: Ethereum gas price chart
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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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