Categories: Crypto Review

Persisting pressure on crypto

Market picture

The crypto market has lost 2% of its capitalisation over the last 24 hours to $2.29 trillion. Bitcoin is losing 1.8%, Ethereum – 1.7%. Among the top altcoins, Solana is experiencing the biggest decline of 4%, while BNB has lost the least, just 0.5%. 

Bitcoin is drawing its fourth consecutive declining candle on Wednesday, registering a sequence of lower intraday highs and lows. The previous resistance line is temporarily acting as support. 

Ethereum is back to $3000, having been close to trading range support since late February. If the decline develops, we should pay attention to the dynamics near $2900. The break of this support will cause a drop to $2500-$2600 in the main scenario, where the previous consolidation area and the 200-day moving average are located. 

News Background

According to CoinShares, crypto funds saw outflows of $251M last week after $435M a week earlier. Bitcoin investments were down $284M. Ethereum funds saw net inflows of $30M after seven weeks of outflows. 

Bitcoin was the only digital asset that saw outflows. Meanwhile, inflows were seen in a wide range of altcoins. 

Last week was the first time there were meaningful outflows ($156 million) from spot ETFs in the US. The average buy price of these ETFs since launch is valued at $62,200, which triggered a wave of selling when the price fell below that level. 

The ratio of bitcoin options positions points to BTC rising toward $70K-$100K by the end of 2024, said CoinDesk analyst Omkar Godbole. According to QCP Capital, the degree of positivity in options traders’ sentiment on Ethereum is lower than on Bitcoin. 

The US SEC has extended the review period for an application to launch a spot ETF on Ethereum from Invesco and Galaxy. The next deadline is 5 July 2024. 

Custodial crypto wallet developer Exodus will be listed on the NYSE on 9 May. The company’s shares are tokenised on the Algorand blockchain, making Exodus the only publicly traded crypto firm in the US whose securities are traded on traditional and blockchain platforms. 

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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