Good morning and welcome to First Mover. I'm Lyllah Ledesma, here to guide you through the latest crypto markets, news and insights.
- Price Point: Bitcoin has seen a bit of a relief rally, rising 3.4% today. Analysts believe this is likely to be short-lived.
- Market Movements: Cardano's ADA is up 25% in the last 24 hours. CoinDesk's Shaurya Malwa looks at this in detail.
Bitcoin (BTC) has finally recovered, rising above last week's low of $28,500. The world's largest cryptocurrency by market capitalization rose 3.4% in the last 24 hours to trade at around $31,600. Bitcoin has fallen about 16% during the month of May, reaching its lowest price since the end of 2020.
BTC peaked at $32,200 on Monday, significantly outperforming S&P 500 futures as Americans took advantage of the Memorial Day holiday.
Laurent Kssis, Europe head of Hashdex, said in an interview with CoinDesk that this is a short-term trend for BTC and the current signals are not material and could reverse very quickly.
"I still see a trading range in the $30K area that could be breached as downward pressure is still affected," Kssis said.
Pablo Jodar, financial products manager at Storm Partners, a systems provider for the cryptocurrency space in Europe, also said that fundamentals have not yet changed despite Bitcoin's upswing.
"We could see BTC rise further to $35,000 this week as some short sellers liquidate and need to buy back, but we still remain bearish in the short term," Jodar said.
"The real question is whether Ether can break back out above $2,000 and continue its climb as altcoins try to readjust after the LUNA drop, but we are not confident in the short term," Kssis said.
Ethereum rose 4% during the day to trade around $1,900.
Last week, CoinShares data showed Ethereum saw outflows of $11.6 million. Ethereum significantly underperformed Bitcoin last week.
According to CoinShares data, inflows into all crypto funds total $520 million year-to-date, compared to $5.9 billion in the same period last year.
Altcoins also posted positive gains in the last 24 hours, with Cardano's ADA leading the way with a 27% increase, Aave up 16%, and NEAR Protocol up 12%.
Play-to-earn game Axie Infinity (AXS), the game's native token, rose 29% in the last 24 hours.
By Shaurya Malwa
Crypto markets added around 4.4% to the total capitalization in the last 24 hours as Bitcoin (BTC) saw signs of bottoming out and traditional markets showed strength earlier this week.
Cardano's ADA token led the gains among major cryptocurrencies with a 17% increase, trading above 64 cents on Tuesday. Fundamental catalysts include a surge in native asset issuance on the network - over five million assets have now been minted on Cardano, data shows - and the upcoming Vasil hardfork, a network upgrade expected in June that would increase scaling opportunities.
Price charts suggest ADA has found support at 45 cents. Relative Strength Index (RSI) readings - a tool used by traders to calculate the extent of an asset's price movement - fell to nearly 33 earlier this week, indicating early signs of a bottom in ADA. However, the token could face strong resistance at the 80-cent mark.
Ether (ETH) gained 5.8% despite gas fees falling to a low. A drop in fees usually indicates falling demand for the network, suggesting that the move may have been led by traders betting on a market-wide rally rather than being driven by fundamental growth.
XRP rose 5%. Avalanche's AVAX and Solana's SOL gained as much as 4%. Memecoins Dogecoin (DOGE) and Shiba Inu (SHIB) posted limited gains, rising only 3.8% and 2.3%, respectively, underperforming the broader market.
- U.K. Government Proposes Stablecoin Protections After Terra Collapse A proposal from the U.K. Treasury would give the Bank of England more power over failed stablecoin issuers.
- Fidelity Digital Assets plans to double headcount this year: report The company plans to hire 110 people in technical roles and is recruiting engineers and developers with blockchain experience.
- Morgan Stanley says record crypto venture capital investment to slow Deal activity peaked in December and could fall as much as 50% by year-end, the bank said.
- Terra's new Luna token surges 40% after listing on Binance Terra's new Luna token has attracted more than $850 million in trading volume in the last 24 hours as it begins to build momentum.
- Singapore investigates crypto use cases with DBS, JPMorgan and Marketnode In the first phase of "Project Guardian," led by DBS, JPMorgan and Marketnode, MAS will investigate DeFi applications in wholesale financial markets.
Today's newsletter was edited by Lyllah Ledesma and produced by Parikshit Mishra and Stephen Alpher.