The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Thursday! Here's what you need to know today in crypto: |
- Bitcoin is unable to hold gains after initially rising following softer-than-expected CPI inflation data on Wednesday.
- Franklin Templeton plans to add to its crypto market offerings with a second blockchain fund.
- The EU could veto large stablecoins during the MiCA approval process.
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CoinDesk Market Index (CMI): 1,201 −0.6%
Bitcoin (BTC): $27,453 −0.6%
Ether (ETC): $1,824 −1.3%
S&P 500 futures: 4,149.75 −0.1%
FTSE 100: 7,711.32 −0.4%
Treasury Yield 10 Years: 3.44% −0.1 |
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Bitcoin was trading down slightly to $27,400 on Thursday after initially climbing following the release of the Bureau of Labor Statistics' Consumer Price Index (CPI) on Wednesday. The annual U.S. inflation rate slowed to 4.9% in April from 5.0% in March and versus economist forecasts for 5.0%. The crypto initially rose as high as $28,300 following the news before quickly giving up those gains and more amid rumors the U.S. government was preparing to sell some of its bitcoin holdings. A break below current levels could see bitcoin test $25,250 according to a report by SEBA Bank, which said $27,000 should be an important support and near-term upside could be capped at $28,500. |
Fund giant Franklin Templeton, which has some $1.4 trillion in assets under management, plans to add to its crypto market offerings with a second blockchain fund, according to a Wednesday filing with the U.S. Securities and Exchange Commission. The Blockchain Fund II is a private equity fund and will carry a minimum investment of $100,000. The firm's previous blockchain fund, established in late 2021, was venture capital-focused. The offering also differs from the firm's foray into crypto last year, which involved separately managed accounts strategies through investment in the 10-15 largest digital assets. Central banks should veto large stablecoins if they have fears they could upend monetary policy, the chair of the European Banking Authority (EBA) has said, observing that the use of permissionless blockchains could prove financially unsound. EBA Chairperson José Manuel Campa will in the coming months be setting out the detailed rules to implement the European Union's Markets in Crypto Assets regulation (MiCA), a landmark framework that will require stablecoin issuers to obtain a license and hold suitable reserves. "Central banks should have the power to veto the widespread introduction of so-called stablecoins" if they affect public policy goals, including financial stability or monetary policy, Campa said at an event hosted by think tank OMFIF on Thursday. |
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Market Insight: Binance Spot Trading Volume Sheds Almost 50% in April
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Spot trading volume at Binance, the world's largest cryptocurrency exchange, dropped for a second straight month in April, falling 48% amid declining transaction levels across the industry, according to CCData. Volume dropped to $287 billion in April, the second-lowest level since 2021. The exchange's market share also fell for a second month to 46%. Binance isn't alone. Spot trading volume on centralized exchanges overall fell 40% to the lowest levels since December. The uncertainty surrounding macroeconomic conditions such as looming recession threats alongside the collapse of several U.S. banks contributed to the declining volumes, CCData said. |
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- The chart shows the dollar index's (DXY) daily price action in the form of Japanese candlesticks since December 2022.
- The decline in the dollar index, which gauges the greenback's value against majors, has stalled since mid-April. The index held steady between 101.50-102.00 in the past 24 hours despite a softer-than-expected U.S. CPI release.
- The greenback's resilience may weigh over the crypto market. According to S&P Global's findings, bitcoin and the wider crypto market has a strong inverse relationship with the dollar.
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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