Last week in the news
Latest output of economic data is modestly increasing investors' confidence that inflation in the US might be slowing down, after the latest measures imposed by the FED. The US equities finished the week in a positive territory. However, the crypto market is currently on hold. Bitcoin is finishing the week modestly below $28K, Ether holds above support at $1.750.
One of the favorite FED`s indicators for inflation estimate is Personal Consumption Expenditure in the US. This indicator rose 4.9% in April, which was in line with market estimates and significantly less from March`s 5.2%. This figure brought some relief on the financial markets as it will mean that FED will probably slow down with further increase in interest rates, but it still does not mean that FED will halt further liquidity squeeze from the market, so further risks for financial markets still exist, as inflation in the US still holds at 8.3% y/y in April.
Investors who founded Terra project are not ready to give up on it, after its recent total debacle on the market. As per news, they are ready to renew Terra 2.0 ecosystem, whose recent crash of UST and LUNA caused estimated losses of around $60 billion. Terra will launch a new blockchain and airdrop new LUNA tokens to users who already possess the old LUNA and UST tokens. On the other hand, analysts are sceptical if this project might still be a success, considering that it would be extremely hard to rebuild market trust.
At the World Economic Forum held in Davos, Switzerland, last week, almost half of participants were from the crypto industry. At an event called Promenade, where people from various businesses are able to meet people from governments, the most dominant businesses were from the crypto world including Meta and SaleForce. This is the first time in history of WEF meetings that the crypto businesses are taking the lead among all other industries.
Binance is continuing its expansion in Europe with its latest office in Italy. Last week the company secured an operating license for offering virtual asset services in Italy from a local regulator. Binance recently gained regulatory approval for operations in France, Bahrain and Dubai.
Elon Musk again supported Dogecoin by tweeting that SpaceX will soon allow for commercial items related to this SpaceX project to be bought using DOGE coin. After he tweeted this news, the coin`s price was increased by 10%. Musk` s company Tesla has allowed the same purchases since December last year.
Crypto market cap
Despite indications that inflation in the US is slowing down, the crypto market continues to trade sideways. Dip buyers are still on hold, waiting for comments from FED in relation to their further moves to cope with inflation. During the previous week total crypto market capitalization decreased by an additional $57B or 5%, ending the week at a level of $1.19 trillion. Weekly decrease was led by Ether, second week where this coin is outperforming BTC, unfortunately, in a negative way. Daily trading volumes were further decreased, moving around $135B on a daily basis. Total outflow from the beginning of the year is nearing $1B, which is a decrease of $45% within five months.
For a second week in a row Ether is leading drop in total market capitalization, and beating the BTC for a second week. During the previous week Ether lost almost $24B, which is decrease of 10% on a weekly basis. Bitcoin took second place when it comes to funds outflow, losing during the week $10B or almost 2% of market cap. Significant drop had Solana, with decrease of $3B in market cap or 17%, while XRP continued its turn to the downside, with another drop of $1.5B or 7% during the week. Group of coins which lost above $1B includes Binance Coin, whose market cap was down by additional 2%. On the other hand, there were gainers during the week, like Ethereum Classic, which gained 11%, followed by Bitcoin Gold, with weekly increase in market cap by 15%. Tether continues to decrease coins in circulation, losing an additional 1% in market cap, or $730 million within a week.
Crypto futures market
Spot market was traded sideways; however, investors on futures markets were not so optimistic during the week. BTC`s both short and long term futures were down around 2%, where maturities as of the end of this year are holding modestly above $30K. On the other side, ETH futures experienced much higher drop. Short term futures were down by some 10% in line with the spot market; however, the latest price for the end of this year was down by 14% on a weekly basis, reaching level of $1.780, and below the $2K psychological line for ETH.
Latest output of economic data is modestly increasing investors' confidence that inflation in the US might be slowing down, after the latest measures imposed by the FED. The US equities finished the week in a positive territory. However, the crypto market is currently on hold. Bitcoin is finishing the week modestly below $28K, Ether holds above support at $1.750.
One of the favorite FED`s indicators for inflation estimate is Personal Consumption Expenditure in the US. This indicator rose 4.9% in April, which was in line with market estimates and significantly less from March`s 5.2%. This figure brought some relief on the financial markets as it will mean that FED will probably slow down with further increase in interest rates, but it still does not mean that FED will halt further liquidity squeeze from the market, so further risks for financial markets still exist, as inflation in the US still holds at 8.3% y/y in April.
Investors who founded Terra project are not ready to give up on it, after its recent total debacle on the market. As per news, they are ready to renew Terra 2.0 ecosystem, whose recent crash of UST and LUNA caused estimated losses of around $60 billion. Terra will launch a new blockchain and airdrop new LUNA tokens to users who already possess the old LUNA and UST tokens. On the other hand, analysts are sceptical if this project might still be a success, considering that it would be extremely hard to rebuild market trust.
At the World Economic Forum held in Davos, Switzerland, last week, almost half of participants were from the crypto industry. At an event called Promenade, where people from various businesses are able to meet people from governments, the most dominant businesses were from the crypto world including Meta and SaleForce. This is the first time in history of WEF meetings that the crypto businesses are taking the lead among all other industries.
Binance is continuing its expansion in Europe with its latest office in Italy. Last week the company secured an operating license for offering virtual asset services in Italy from a local regulator. Binance recently gained regulatory approval for operations in France, Bahrain and Dubai.
Elon Musk again supported Dogecoin by tweeting that SpaceX will soon allow for commercial items related to this SpaceX project to be bought using DOGE coin. After he tweeted this news, the coin`s price was increased by 10%. Musk` s company Tesla has allowed the same purchases since December last year.
Crypto market cap
Despite indications that inflation in the US is slowing down, the crypto market continues to trade sideways. Dip buyers are still on hold, waiting for comments from FED in relation to their further moves to cope with inflation. During the previous week total crypto market capitalization decreased by an additional $57B or 5%, ending the week at a level of $1.19 trillion. Weekly decrease was led by Ether, second week where this coin is outperforming BTC, unfortunately, in a negative way. Daily trading volumes were further decreased, moving around $135B on a daily basis. Total outflow from the beginning of the year is nearing $1B, which is a decrease of $45% within five months.
For a second week in a row Ether is leading drop in total market capitalization, and beating the BTC for a second week. During the previous week Ether lost almost $24B, which is decrease of 10% on a weekly basis. Bitcoin took second place when it comes to funds outflow, losing during the week $10B or almost 2% of market cap. Significant drop had Solana, with decrease of $3B in market cap or 17%, while XRP continued its turn to the downside, with another drop of $1.5B or 7% during the week. Group of coins which lost above $1B includes Binance Coin, whose market cap was down by additional 2%. On the other hand, there were gainers during the week, like Ethereum Classic, which gained 11%, followed by Bitcoin Gold, with weekly increase in market cap by 15%. Tether continues to decrease coins in circulation, losing an additional 1% in market cap, or $730 million within a week.
Crypto futures market
Spot market was traded sideways; however, investors on futures markets were not so optimistic during the week. BTC`s both short and long term futures were down around 2%, where maturities as of the end of this year are holding modestly above $30K. On the other side, ETH futures experienced much higher drop. Short term futures were down by some 10% in line with the spot market; however, the latest price for the end of this year was down by 14% on a weekly basis, reaching level of $1.780, and below the $2K psychological line for ETH.
