Ethereum is losing volatility

Market Overview

The crypto market has been hovering around $2.7 trillion in market cap for the past 7 days. Interestingly, while recording relatively stable levels at the start of the day in Europe, the market deviates from this level by almost 2%, only to return to equilibrium very quickly, with yesterday’s leaders turning into underperformers. Over the past 24 hours, the top performers have been NEAR (+5%), TRUMP (+3.8%), and Neo (+3.5%), while the underperformers have been Toncoin (-8%), Theta (-5.2%), and BAT (-2.2%).

Bitcoin continues to settle quietly at levels above $80K, yet to decide on a breakout above the 200-day moving average. It seems that traders are paying excessive emotional attention to this technical aspect. By way of comparison, just over a year ago, Bitcoin crossed this curve quite freely in both directions.

Ethereum has lost all the gains made since the end of last month, once again testing the support level at $2,240, near which the 50-day moving average also lies. Furthermore, over the last four weeks, the second-largest cryptocurrency has been forming a sequence of lower local highs. This has not yet turned into a downtrend, as there is no sequence of lower local lows. The situation resembles a coiled spring.

News Background

The decline in volatility of the leading cryptocurrency and the inflow of institutional capital have altered market cycles, making the current cycle unique, according to CryptoQuant. Price movements now differ from historical data.

Mining company MARA reported a net loss of $1.3 billion and the sale of more than 20,000 bitcoins for the first quarter. The main reason for the negative result was a drawdown in treasury reserves, driven by BTC falling by more than 20% over the quarter. Another major miner, CleanSpark, reported a first-quarter loss of $378 million.

Democratic Party representatives in the US Congress are calling for a ban on officials profiting from crypto assets. Without a compromise on ethical issues, the CLARITY Act will not get a green light. Lawmakers plan to finalise work on it by August.

Despite its popularity, Bitcoin can hardly be called a safe-haven asset, said Ray Dalio, founder of investment firm Bridgewater Associates. In his view, only gold is worthy of that title. The billionaire cited the lack of privacy as one of the main reasons: all transactions are visible on the public blockchain.

Elliptic has raised $120 million to develop tools for tracking cryptocurrencies. The company will use the funds to create and launch AI agents that perform the tasks of compliance officers.

The FxPro Analyst Team