Good Morning. Here's what happened:
Prices: Cryptocurrencies climbed late in the day, but not enough to overcome the ongoing bear market.
Insights: Indian crypto investors are getting some positive news.
Technician's take: BTC continues to trade at around $30,000 as indicators remain neutral.
(BTC): $30,600 +2.4%.
Ether (ETH): $1,842 +0.3%
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.Bitcoin climbs late, but sentiment remains bearish
A late Thursday afternoon surge took Bitcoin above $30,000, but sentiment among cryptocurrency investors remained bearish.
The largest cryptocurrency by market cap recently traded at around $30,600, up more than 2% in the last 24 hours. Ether changed hands at just over $1,800, a slight increase over the same period. Most other major cryptocurrencies were recently up nearly 6% and APE was up over 4%. Trading was choppy as investors continued to shy away from riskier assets - their behavior a product of inflation and recession fears that have steadily increased this year.
"Bitcoin will rebound once bearish sentiment on Wall Street improves, but that will likely take a few more weeks," Oanda Senior Markets Analyst Edward Moya wrote in an email.
Stocks rose as the technology-heavy Nasdaq gained 2.6%, the S&P 500 rose 1.8% and the Dow Jones Industrial Average gained 1.2%. Gold, a traditional safe haven in falling markets, gained more than a percentage point, underscoring the current uncertainty among investors.
The Organization of Petroleum Exporting Countries and allied countries said they would increase oil supply by unexpectedly large amounts. The U.S. and other countries had urged the organization to ease its current restrictions to lower energy prices. The price of Brent crude, a widely watched measure of energy markets, rose to $118 a barrel, up more than 53% since the start of the year.
The looming prospect of a recession continued to impact the technology sector Thursday, as Microsoft (MSFT) cut its profit and revenue forecasts for the current quarter. Amazon (AMZN) and Netflix (NFLX) reported weak first-quarter financial results last month, citing the impact of the Russian invasion of Ukraine and uncertain macroeconomic conditions.
The crypto industry also felt the impact of the current dour economic mood when crypto exchange Coinbase announced in a blog post by Chief People Officer L.J. Brock that it will "extend our hiring freeze for new and backfill positions for the foreseeable future and withdraw a number of accepted offers." The move came just hours after crypto exchange and custodian Gemini, the brainchild of billionaire twins Cameron and Tyler Winklevoss, announced it would lay off 10% of its workforce, about 100 employees.
The crypto industry is currently in a "contraction phase that is transitioning into a stagnation phase," also known as "crypto winter," the twins wrote in a blog post.
Oanda's Moya noted that investors' "risk appetite" depends on "expectations" of what the Federal Reserve will do "beyond the summer."
"Bitcoin is building a base, but most traders are still licking their wounds," he wrote.
"If Bitcoin can reclaim the $33,500 level, that will set the stage for technical buying to be triggered. "
: 4,176 +1.8%
DJIA: 33,248 +1.3%
Nasdaq: 12,316 +2.6%
Gold: $1,868 +1.2%InsightsEncouraging news
for Indian crypto investors.
There was positive news for Indian crypto investors for a change with CoinSwitch Kuber's announcement on Thursday that it will launch a rupee-denominated index that will provide real-time information on the performance of the eight largest cryptocurrencies by market capitalization.
The Crypto Rupee Index (CRE8) is a first for the Indian market, which previously "relied on the international indices based on the U.S. dollar," tweeted CoinSwitch Kuber CEO and co-founder Kuber Ashish Singhal. "But these indices do not reflect the true picture of the Indian market and miss the supply-demand dynamics of the growing Indian investor base," he added.
CoinSwitch Kuber is one of the country's largest crypto exchanges, with what it claims are 18 million users of its app. Investors include venture capital heavyweights Andreessen Horowitz (a16z), Coinbase Ventures, Tiger Global and Sequoia Capital.
The announcement follows a difficult few months for the digital asset industry in India, despite the country's growing appetite for cryptocurrencies. In April, Indians began paying a 30% capital gains tax on crypto transactions after parliament passed a controversial tax law. The law, which was vehemently opposed by the industry, requires crypto investors in the country to pay a 1% withholding tax as well as taxes on crypto gifts starting July 1, without the ability to deduct losses.
Trading volumes on major Indian exchanges plummeted in the days after the capital gains tax took effect, and at least one analyst predicted they would not return to pre-tax levels. Subsequently, the industry was rocked by the bumpy launch of Coinbase's crypto trading services in India.
CoinSwitch Kuber said CRE8 will be updated more than 1,400 times a day to ensure it reflects real-time market movements and will track eight crypto assets representing more than 85% of the total market capitalization of the Indian rupee-traded crypto market.
Singhal pointed to Indian investors' demand for better crypto services and information. "#CRE8 is a demonstration of our commitment to bring more transparency to the Indian crypto market and to provide users with a simple, easy-to-understand measure of the Indian market. Indian investors and market watchers no longer need to question how the Indian crypto market is performing," Singhal tweeted.
in narrow trading range, resistance at $33K
Bitcoin held initial support near $29,300, where last weekend's price surge originated. On Thursday afternoon, the cryptocurrency remained in a tight intraday range with a midpoint at $30,100, which is where most of the trading volume took place over the past two weeks. For now, the BTC price could continue to return to this midpoint until a decisive breakout or breakout is confirmed.
The uptrend seems to be limited in the resistance area between $33,000 and $35,000, especially since the momentum signals on the long-term charts remain negative.
Nevertheless, the momentum on the daily chart remains positive, which could keep the short-term buyers active. The 14-day RSI (Relative Strength Index) needs to return above the neutral level of 50 to support a recovery in the price.
4:00 p.m. HKT/SGT(8:00 a.m. UTC) Eurostat S&P PMI (May).
8:30 p.m. HKT/SGT(12:30 p.m. UTC) U.S. Unemployment Rate (May)
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Said and Heard
"Malaysian chicken exporters scrambled this week to deliver their last batches of fresh chickens across the border to neighboring Singapore before an export ban took effect at midnight Wednesday." (South China Morning Post) ... "Saudi Arabia has indicated to its Western allies that it is ready to increase oil production if Russia's output falls significantly under the weight of sanctions, according to five people familiar with the talks." (Financial Times) ... "The Biden administration on Wednesday defended its decision to send advanced multiple-launch missiles to Ukraine, rejecting criticism that the decision came too late to make a difference while brushing aside Kremlin accusations that the U.S. was prolonging the war." (The Washington Post)