Last week in the news
After a strong corrective week, the previous week brought some relief on the crypto market. The US and EU equities continued to trade with increased volatility, and regardless of clear bearish trend, ended Friday in the green zone. Bitcoin is holding to $30K, Ether is testing $2K support.
Monetary policies of central bankers of developed countries continue to be in the focus of markets. After the FED made a strong move of 50bps increase in interest rates at the beginning of May, currently all eyes are on ECB. As per latest announcements from several ECB officials, it is becoming more likely that ECB will increase its referent interest rates at a meeting scheduled for July this year. This will be its first rate hike within a decade.
After the recent crash of LUNA to $0, Tether also shortly lost its peg to $1 amid market run from stablecoins. Officials from Tether Holdings Ltd announced that they have diversified Tbonds holdings including non-U.S. government bonds. Around $286 million relates to the non-U.S. bonds, while the company still holds $39.2 billion in the U.S. Treasury bonds.
The collapse of LUNA ring the alarm with regulators, currently looking exactly what happened with algorithmic stablecoins in order to bring new regulation which should protect investors in such coins. At the latest G7 meeting this was one of the topics. In a released statement, it is noted that stablecoins should follow anti-money laundering rules and disclose reserves.
Latest drop in Coinbase share price due to weak earnings, one of the co-founders of the company, Fred Ehrsam, used to purchase $75 million worth of shares. This purchase has been done through venture capital firm Paradigm, which Ehrsam owns. Coinbase shares were down by some 70% during this year.
In an interview with Wall Street Journal, Chief Financial Officer of MicroStrategy, Andrew Kang, noted that the company will stick to its plans to hold bitcoin for a long period, regardless of recent drop in price. He also noted that there is also no pressure from shareholders for the company to sell coins at this moment.
Crypto market cap
It could be noted that the previous week was a relatively calm one on the crypto market. After a strong push to the downside, two weeks ago, during the previous week markets continued to weigh current events and whether it is time for dip buyers to step on the stage. Many analysts are commenting that the bearish market has started and that it will take some time, even through this year, until the market finally reverts its sentiment toward bears. However, many investors are waiting for central bankers to exhaust their monetary tightening in order to make investment decisions and moves on the market. At this moment, such moves might take some time in the future. Total crypto market capitalization remained flat during the previous week at levels around $1.2 trillion. Daily trading volumes significantly dropped from a week before, moving from $200B down to $130B on a daily basis. Total outflow from the beginning of this year still holds at $43% down, or almost $1 billion lower from the end of the previous year.
Although it was a relatively calm week, coins were traded in a mixed mode. Major coins were relatively flat compared to a week before, where Bitcoin finished the week with a loss of only $3B, while Ether managed to outperform BTC this time, losing $5B or 2%. Due to issues with LUNA, Tether continues to decrease market cap, losing additional $3.5B during the previous week, or 4.5%. On the other hand, at previous week we have seen some solid gains. Binance Coin managed to erase some of the losses from two weeks ago, by gaining $3.6B in a market cap, which is a 7.7% increase in a single week. Monero was also in a group of significant gainers, adding some 17.7% in its market cap. There has been some increase of coins in circulation, where Uniswap increased circulating supply by 4%, and Filecoin by 3.5%.
Crypto futures market
Crypto futures market made some recovery during the previous week, especially for long term maturities. Short term maturities were following the spot market, where BTC futures were traded down by some 5%, while Ether futures were down by some 5% on average. Long term maturities for both coins made some movements in a positive direction. BTC futures with maturities as of the end of this year were traded higher by more than 4%, ending the week above $30K. Ether futures maturing within the same period were traded 2% higher, where ETH was holding modestly above $2K.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
After a strong corrective week, the previous week brought some relief on the crypto market. The US and EU equities continued to trade with increased volatility, and regardless of clear bearish trend, ended Friday in the green zone. Bitcoin is holding to $30K, Ether is testing $2K support.
Monetary policies of central bankers of developed countries continue to be in the focus of markets. After the FED made a strong move of 50bps increase in interest rates at the beginning of May, currently all eyes are on ECB. As per latest announcements from several ECB officials, it is becoming more likely that ECB will increase its referent interest rates at a meeting scheduled for July this year. This will be its first rate hike within a decade.
After the recent crash of LUNA to $0, Tether also shortly lost its peg to $1 amid market run from stablecoins. Officials from Tether Holdings Ltd announced that they have diversified Tbonds holdings including non-U.S. government bonds. Around $286 million relates to the non-U.S. bonds, while the company still holds $39.2 billion in the U.S. Treasury bonds.
The collapse of LUNA ring the alarm with regulators, currently looking exactly what happened with algorithmic stablecoins in order to bring new regulation which should protect investors in such coins. At the latest G7 meeting this was one of the topics. In a released statement, it is noted that stablecoins should follow anti-money laundering rules and disclose reserves.
Latest drop in Coinbase share price due to weak earnings, one of the co-founders of the company, Fred Ehrsam, used to purchase $75 million worth of shares. This purchase has been done through venture capital firm Paradigm, which Ehrsam owns. Coinbase shares were down by some 70% during this year.
In an interview with Wall Street Journal, Chief Financial Officer of MicroStrategy, Andrew Kang, noted that the company will stick to its plans to hold bitcoin for a long period, regardless of recent drop in price. He also noted that there is also no pressure from shareholders for the company to sell coins at this moment.
Crypto market cap
It could be noted that the previous week was a relatively calm one on the crypto market. After a strong push to the downside, two weeks ago, during the previous week markets continued to weigh current events and whether it is time for dip buyers to step on the stage. Many analysts are commenting that the bearish market has started and that it will take some time, even through this year, until the market finally reverts its sentiment toward bears. However, many investors are waiting for central bankers to exhaust their monetary tightening in order to make investment decisions and moves on the market. At this moment, such moves might take some time in the future. Total crypto market capitalization remained flat during the previous week at levels around $1.2 trillion. Daily trading volumes significantly dropped from a week before, moving from $200B down to $130B on a daily basis. Total outflow from the beginning of this year still holds at $43% down, or almost $1 billion lower from the end of the previous year.
Although it was a relatively calm week, coins were traded in a mixed mode. Major coins were relatively flat compared to a week before, where Bitcoin finished the week with a loss of only $3B, while Ether managed to outperform BTC this time, losing $5B or 2%. Due to issues with LUNA, Tether continues to decrease market cap, losing additional $3.5B during the previous week, or 4.5%. On the other hand, at previous week we have seen some solid gains. Binance Coin managed to erase some of the losses from two weeks ago, by gaining $3.6B in a market cap, which is a 7.7% increase in a single week. Monero was also in a group of significant gainers, adding some 17.7% in its market cap. There has been some increase of coins in circulation, where Uniswap increased circulating supply by 4%, and Filecoin by 3.5%.
Crypto futures market
Crypto futures market made some recovery during the previous week, especially for long term maturities. Short term maturities were following the spot market, where BTC futures were traded down by some 5%, while Ether futures were down by some 5% on average. Long term maturities for both coins made some movements in a positive direction. BTC futures with maturities as of the end of this year were traded higher by more than 4%, ending the week above $30K. Ether futures maturing within the same period were traded 2% higher, where ETH was holding modestly above $2K.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
