Daily News | Crypto Giants Embrace Transparency Amid Highs of Bitcoin and Ether; Investors Eye Inflation and Trade in Global Markets
Crypto Daily Digest: Crypto Giants Navigate Regulatory Challenges with Transparency Efforts as Bitcoin and Ether Adoption Rates Reach All-Time High Despite Slight Slips
In the last 24 hours, Bitcoin and Ether have experienced slight declines of about 1.3% and 1%, respectively. Despite this, the number of non-zero Bitcoin addresses has reached a new all-time high, indicating a rise in adoption and recognition of the cryptocurrency. However, fewer addresses were added than in the previous cycle. The Bitcoin market valuation has seen a significant revival since 2022, and the hashrate has grown exponentially, demonstrating the network’s health and security.
Meanwhile, Coinbase has reported better-than-expected Q1 results, with a revenue of $773m and a loss per share of $0.34. Nevertheless, regulatory uncertainty and lower volumes in Q2 have made some analysts cautious. Goldman Sachs maintained its sell rating on shares, citing the “lack of visibility around organic growth” but increased its 12-month price target to $45 from $40. Despite regulatory challenges, Coinbase has been advocating for better regulatory transparency, and its shares have seen a 70% year-to-date increase.
In other news, Binance temporarily halted Bitcoin withdrawals on May 7 due to an alleged overflow of transactions on the Bitcoin network. This was caused by a surge in BRC-20 transactions driven by memecoins like Pepe, leading to Bitcoin transaction fees reaching their highest point in two years. BTC withdrawals resumed after almost an hour of halting.
Additionally, according to a Bloomberg report, Binance is currently facing numerous criminal and regulatory investigations, including an inquiry by the US Justice Department’s national security division into whether it was used illegally to allow Russians to bypass US sanctions related to Russia’s invasion of Ukraine. The SEC is also scrutinizing the company for trading unregistered securities, while allegations of breaking rules have been made by the US derivatives regulator. Despite these investigations, Binance maintains that it complies with all US and international financial sanctions and has implemented “know your customer” protocols similar to those used in the traditional banking .
Bitcoin (BTC) $28579 (+0.52%) - Neutral Outlook
The 3H and 1H timeframes are showing their respective accumulation structures. By incorporating both outlooks, we can assume there is likely to be at least one more drawdown to about 28120 - 27790. To understand a broader outlook of BTC on high timeframes, please refer to last Thursday’s daily news article.
Overview:
- Closest hourly support zone: 28412 - 28348
- Closest hourly resistance zone: 28635 - 28796
- Key Level: 28419 (Weekly High between Dec. 21 - 28, 2020)
Hourly Resistance zones
- 28635 - 28796
- 28967 - 29037
- 29133 - 29300
Hourly Support zones
- 28412 - 28348
- 28120 - 28020
- 27790 - 27677
Macro: US Jobs Data Boosts Market Sentiment, Inflation and Trade Figures in Focus for Investors
Global financial markets are expected to see a rise in Asian shares on Monday following a volatile week. The Optimism stems from solid US jobs data, which has helped to ease fears of an impending recession and improved market sentiment. Last week, Wall Street closed on a positive note, with the S&P 500 ending its longest losing streak since February and the KBW Bank Index rebounding from its lowest point since September 2020. However, concerns among investors remain, including the rout in US bank shares and the debt limit stalemate in Washington.
Investors will now shift their attention to China’s trade figures and inflation numbers. The release of US inflation data this week is also expected to have a significant impact on market movements. The data will likely provide clues as to whether the Federal Reserve will pause its series of interest-rate hikes at next month’s meeting. The core consumer price index (CPI), which excludes food and energy, is projected to have risen by 5.5% in April, up from 5.6% in March, indicating persistent inflation. On Thursday, data on prices paid to producers will be released, and it is expected to show a firming in cost pressures for April compared with the previous month.
Other events that investors are keeping an eye on include the Bank of England’s potential quarter-point rate increase and the G7 finance chiefs’ meeting in Japan. These events will likely provide further insights into the current state of the global economy and could affect market movements in the coming days. Despite the ongoing concerns, market experts remain cautiously optimistic, and the coming week will be closely monitored for any signs of further volatility or stability.
