By Omkar Godbole (All times ET unless indicated otherwise)
The crypto market is a vibrant sea of green this week as traders overlook stagflation concerns raised by the Federal Reserve to celebrate hints of a significant trade deal between President Donald Trump and a major trading partner.
Bitcoin has soared by 2.6%, closing in on the $100,000 mark. Despite reports from The Wall Street Journal suggesting that this potential trade announcement may merely outline a framework for future discussions rather than offering concrete resolutions, investor enthusiasm remains high. The overall market saw more substantial gains, with altcoins including XRP, ETH, ADA, and DOGE witnessing rises between 4% and 6%. Notably, tokens linked to memecoin projects, layer-1 chains, and decentralized finance (DeFi) platforms are driving the bullish momentum higher.
In significant news, cumulative inflows into U.S.-listed spot Bitcoin exchange-traded funds (ETFs) have reached an all-time high of $40.62 billion, underscoring a trend of increasing institutional adoption within the cryptocurrency space.
On the regulatory front, Arizona has become the second U.S. state to enact a bitcoin reserve bill. This new legislation enables the state to take ownership of abandoned coins if their owners do not respond to communications within three years, while also allowing for state investments in Bitcoin.
Meanwhile, a whale from the Ethereum ICO has sold 5,200 ETH for approximately $9.54 million, continuing a trend of liquidation activities. However, this individual still holds 8,300 ETH, valued at about $15.28 million.
The decentralized layer-1 blockchain Avalanche registered its highest trading volume in two years, with a median transaction cost of just $0.00078. The AVAX token has also increased by 7%, reaching a price of $21 at press time.
Stripe has unveiled a new feature known as Stablecoin Financial Accounts, supported by its recent $1 billion acquisition of Bridge, which will provide access to dollar-denominated services across over 100 countries.
From a macroeconomic perspective, traders are closely monitoring U.S. labor costs in the first quarter for indications of persistent wage price inflation that may affect Federal Reserve interest rate decisions going forward.
What to Watch
- Crypto:
- May 8: Judge John G. Koeltl will deliver a sentence for Alex Mashinsky, the founder and former CEO of the now-defunct Celsius Network.
- May 12: A U.S. SEC Crypto Task Force Roundtable will convene on the topic of tokenization, exploring the intersection of traditional finance and DeFi.
- Macro:
- May 8: The Bank of England is set to announce an interest rate decision, with expectations of a potential change to 4.25% from the previous 4.5%.
- May 8: The U.S. Department of Labor is expected to release unemployment insurance data.
- May 8: President Trump may announce a framework for a trade deal with the U.K. during a press conference.
- Earnings (Estimates based on FactSet data):
- May 8: CleanSpark, Coinbase Global, Hut 8, and MARA Holdings are all set to report their earnings.
Token Events
- Governance votes & calls:
- Arbitrum and Compound DAOs are currently voting on critical proposals that could significantly affect their operations.
Conferences
CoinDesk’s Consensus is set to take place in Toronto from May 14-16. Attendees can use code DAYBOOK for a 15% discount on passes.
- Various notable conferences will also be occurring around the world, including the Bermuda Digital Finance Forum and the Dubai FinTech Summit.
Market Movements
- BTC has risen by 3.49% to $99,620.26, while ETH is up 7.76% at $1,939.15.
Technical Analysis
- Recent trends indicate a bullish market sentiment, especially for Bitcoin and Ethereum.
Conclusion
The recent developments in the crypto space, highlighted by institutional investment and regulatory updates, all point to a potentially transformative period for digital assets. As the market continues to evolve, stakeholders are encouraged to stay informed and ready to adapt to the changes.
