The crypto market capitalisation has experienced a 2% increase over the past week, with a notable 13% rise from the lows of May 1st. A slight bottom formation was observed on Wednesday, followed by a modest rebound on Thursday and more aggressive buying on Friday following the US jobs report. However, the market growth was halted over the weekend and at the beginning of the week near a 10-day resistance level at $2.31 trillion. Bitcoin’s impressive rise to $64.4K by the start of trading in Europe on Monday allowed the weekly candle to close higher, indicating a willingness from buyers to acquire assets during significant drops.
Bitcoin managed to break above the descending resistance line on daily timeframes, hinting at a potential bullish reversal. However, to confirm this reversal, a sustained consolidation above $65K is necessary. The dynamics of BTCUSD around the 50-day moving average at $65.7K on Monday could play a crucial role in determining the next market move.
Former BitMEX CEO, Arthur Hayes, believes that Bitcoin’s post-halving pullback was a necessary market correction and predicts that BTC will consolidate above $70K by the end of August, driven by increased dollar liquidity. The Federal Reserve’s decision to reduce the monthly limit on Treasury securities redemption from $60bn to $25bn has been dubbed a ‘hidden printing press’ by Hayes. Payment company Block, owned by Jack Dorsey, has committed to allocating 10% of its monthly profits to Bitcoin by the year’s end. With 8,027 BTC on its balance sheet, Block started building its position in October 2020.
MicroStrategy founder, Michael Saylor, has raised concerns about Ethereum’s classification as a security and doubts whether the US SEC will approve a spot Ethereum-ETF as a result. Tether issuer and Chainalysis have partnered to introduce a system for tracking USDT transactions in the secondary market. Bitfinex CTO, Paolo Ardoino, refuted claims of a data breach after hackers purportedly obtained user information from the exchange. Meanwhile, Solana-based staking platform Jito Network (JTO) has seen an impressive total value locked (TVL) of $1.42bn, establishing itself as the leading protocol on the Solana network with over 10 million SOL coins staked.
The current state of the crypto market is a mix of positive growth indicators, regulatory concerns, and market dynamics that could influence future price movements and investor sentiment. Stay tuned for further updates on this evolving market landscape.
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