Crypto Market Update
Written by Van
Table of contents:
Economic and Regulatory News
- US Economy Adds 253K Jobs in April, Unemployment Falls
- Regulatory Crackdown Pushing Crypto Firms Overseas: JPMorgan
- US Government Plans Tax on Crypto Mining and Supports Emerging Tech
- New York Attorney General Proposes Stricter Crypto Regulations
- CPIC CEO Asserts China's Anti-Crypto Stance Won't Change
- Israeli Authorities Seize Binance Accounts Suspected of Terrorist Links
- Kenya to Impose 3% Tax on Cryptocurrency Transfers
Market Indicators and Analytics
- BTC Market Depth at 15-Month Low
- ETH Deposits to Exchanges Reach 8-Month High
Legal and Compliance Issues
- Do Kwon Faces Extradition And 40-Year Jail Term: WSJ
- Voyager Creditors To See Initial Distributions in Bankruptcy Liquidation
Crypto Exchanges and Platforms
- Block and Coinbase Report Strong Q1 Results
- Binance: Pepe and Floki Listed on Binance, PEPE Reaches All-Time High
- Lido Finance: Lido Finance Sees $199 Million Inflows, Dominates Liquid Staking Market
- Sui Token: Sui Token Market Debut Falters as Concerns Linger
- SushiSwap Launches Concentrated Liquidity Pools on Multiple Networks
Blockchain and Tech Partnerships
- Microsoft's Bing Chatbot Offers Access to GPT-4 Model
- Deloitte Teams Up with KILT for Blockchain-Based KYC
- HTF Technical Analysis
- LTF Technical Analysis
US Economy Adds 253K Jobs in April, Unemployment Falls
The US economy added 253,000 jobs in April, up from a revised 165,000 in March and beating economist expectations of 180,000, according to a report from the Bureau of Labor Statistics. The unemployment rate fell to 3.4%, down from 3.5% in March and below expectations of 3.6%. The strong employment picture has led the US Federal Reserve to raise interest rates to try and bring inflation down to its 2% target. However, the Fed has hinted it may pause rate hikes after raising the benchmark fed funds for a 10th consecutive time earlier this week.
Regulatory Crackdown Pushing Crypto Firms Overseas: JPMorgan
US regulatory crackdowns are pushing cryptocurrency firms overseas, according to a JPMorgan report. Investors have been buying gold as a hedge due to the uncertainty around Ethereum's status as a security. Bitcoin's rally appears to be driven primarily by retail buying, rather than institutional investors.
US Government Plans Tax on Crypto Mining and Supports Emerging Tech
The White House has released a strategy for emerging technologies, including distributed ledger technology (DLT) to maintain US leadership in critical and emerging tech. However, the government plans a tax on crypto mining, which might affect the blockchain's security. Biden's administration aims to foster responsible AI innovation, and $140 million is allocated for seven national AI research institutes.
New York Attorney General Proposes Stricter Crypto Regulations
New York Attorney General Letitia James has proposed legislation to tighten regulations on cryptocurrency firms. The bill would give the attorney general's office the power to enforce industry regulations and require crypto firms to refund victims of fraud. The legislation would also restrict crypto firms from borrowing or lending investor assets and establish independent and public audits.
CPIC CEO Asserts China's Anti-Crypto Stance Won't Change
Despite China-affiliated banks opening accounts for crypto clients in Hong Kong and CPIC launching crypto funds, CPIC's CEO asserts that China is not likely to change its anti-crypto stance. Hong Kong's regulations have allowed these developments, but it is not an indication of a change in China's policies.
Israeli Authorities Seize Binance Accounts Suspected of Terrorist Links
Israeli authorities have seized around 190 Binance accounts suspected to have links to terrorists such as Daesh and Hamas, according to documents from Israel's National Bureau for Counter Terror Financing. In January, the NBCTF confiscated crypto from two Daesh-linked accounts.
Kenya to Impose 3% Tax on Cryptocurrency Transfers
Kenya plans to impose a 3% tax on the transfer of digital assets, including cryptocurrencies and non-fungible tokens, according to the 2023 budget proposals. The new tax regime is scheduled to come into effect in July.
BTC Market Depth at 15-Month Low
Market depth for BTC/USDT has hit a 15-month low, according to Barchart, with liquidity hampered by a weak market and US government regulations. In April, a mere 462 BTC order could have shifted Bitcoin's price by 1% in either direction, the lowest market depth for BTC-USDT since May 2020. Both BTC and ETH have approached one-year lows in 2% market depth, with slippage resulting in lower liquidity for Bitcoin whales. However, the quarterly trading volume of the crypto market has remained above $140 billion throughout the past three quarters.
ETH Deposits to Exchanges Reach 8-Month High
Ethereum deposits to crypto exchanges have reached an eight-month peak, signalling increased volatility in the ETH price soon, according to a Santiment report. The 4626 Alliance has expanded to 11 members as it seeks to promote the adoption of its ERC-4626 tokenized vault standard. The hope among members is that the new standard will provide the same impetus to decentralized finance that ERC-20 tokens gave to initial coin offerings.
Do Kwon Faces Extradition And 40-Year Jail Term: WSJ
South Korean and US prosecutors are seeking the extradition of Do Kwon, co-founder of Terraform Labs and former head of collapsed digital currencies TerraUSD and Luna, who could face up to 40 years in jail. South Korean prosecutors suggest the case against Kwon would be better handled in South Korea because most of the evidence and accomplices are located there. If found guilty, Kwon's sentence could be unprecedented for a financial crime in South Korea.
Voyager Creditors To See Initial Distributions in Bankruptcy Liquidation
Creditors of crypto broker Voyager Digital could see initial distributions from its now-defunct company within the next few weeks as it approaches the final stages of bankruptcy liquidation procedures, according to a tweet from the Voyager Official Committee of Unsecured Creditors. The redistribution comes as Binance.US abandoned its agreement to purchase $1.02 billion of the firm's assets following a "hostile and uncertain regulatory climate."
Block and Coinbase Report Strong Q1 Results
Block, formerly Square, reported a 25% YoY increase in bitcoin sales on its Cash App platform in Q1 2023, selling $2.2 billion worth of bitcoin. Gross profits from these sales were $50 million. Meanwhile, Coinbase reported revenue of $773 million in Q1 and called for "crypto specific rules" instead of "regulation by enforcement" in the US. Coinbase is currently embroiled in a fight with the Securities and Exchange Commission regarding registration and charges.
Pepe and Floki Listed on Binance, PEPE Reaches All-Time High
Ethereum-based Pepe memecoin rallied to a new all-time high of $0.000002322, with a market cap of $864.54 million, ranking it as the 61st largest crypto asset by market cap. Its 24h trading volume stood at $647 million, surpassing that of Dogecoin and Shiba Inu. It came as Binance listed Pepe and Floki in the Innovation Zone, causing a significant rise in their rally. Crypto.com, KuCoin, and Huobi also listed PEPE.
Lido Finance Sees $199 Million Inflows, Dominates Liquid Staking Market
Decentralized finance protocol Lido Finance has seen inflows of over 105,000 ether worth $199 million, taking its deposits to over six million ETH. Lido is the biggest liquid staking protocol, accounting for a 79% market share, and recent growth follows the Ethereum blockchain’s Shanghai upgrade which enables withdrawals from staking contracts.
Emerging competitor platforms Frax Finance and Rocket Pool enjoyed net inflows of $367 million collectively, while centralized exchange heavyweights Binance and Coinbase witnessed withdrawals of over $700 million. Lido has not yet activated withdrawals with v2 protocol upgrade expected later in May.
Sui Token Market Debut Falters as Concerns Linger
Sui (SUI) token price has dropped by 70% to $1.26 on its market debut. Venture capitalists have invested $336 million in SUI via two investment rounds. However, concerns remain around the supply schedule as the Sui Foundation plans to increase the SUI supply by 15% by the end of 2023. This could prompt traders to wait for further price declines before entering the market.
SushiSwap Launches Concentrated Liquidity Pools on Multiple Networks
Decentralized exchange SushiSwap has launched concentrated liquidity pools across 13 networks, with plans to expand to over 30 chains in the coming months, to enable trading and liquidity provision across networks. The move is designed to offer liquidity providers larger trading volumes while reducing financial risks for traders. The protocol has also introduced Tines, a smart-order system that targets the cheapest swaps with maximum capital efficiency.
Microsoft's Bing Chatbot Offers Access to GPT-4 Model
Microsoft's Bing chatbot now offers users access to the same GPT-4 model currently available through OpenAI's ChatGPT Plus subscription service. This is one of several new AI-powered features for Bing and the Edge web browser, including multimodal support and the ability to use third-party plug-ins. Experts have questioned the move given Microsoft's $10 billion investment in OpenAI, which could put the two in competition.
Deloitte Teams Up with KILT for Blockchain-Based KYC
Accounting firm Deloitte has partnered with KILT Protocol, a parachain on the Polkadot network, to enhance its digital identification protocols. The move is intended to improve KYC processes and would offer reusable digital credentials anchored on the KILT blockchain. As one of the world's leading audit, consulting, tax, and advisory firms, Deloitte's collaboration with KILT could prove vital for protecting financial institutions from fraud, money laundering and terrorist financing.
HTF/LTF Technical Analysis
HTF | BTC, ETH & APT
Bitcoin | Weekly Time Frame
As we mentioned yesterday, $BTC is encountering resistance from a crucial zone that previously served as a robust support area before the 2022 breakthrough. The chart clearly illustrates that the price rebounded whenever it was above this region. For now, we should view this area as resistance until proven otherwise. Consequently, before anticipating a continued uptrend, the price may have to revisit the support zone near $25k. However, if the price can break and hold above this resistance level, we can expect further progression for Bitcoin.
Ethereum | Daily Time Frame
$ETH was unable to maintain its position above the range highs and dropped back within the range. However, today Ethereum surged towards the range highs once again. If it manages to hold above this level, we could witness more upward movement. On the other hand, if the price encounters rejection at the range highs and the visit is short-lived, we can expect Ethereum to experience further downside, potentially towards the range quarters.
Aptos | Weekly Time Frame
On the weekly timeframe, $APT is trading at a crucial pivot point, as this area has previously demonstrated its ability to act as both support and resistance. Currently, the price is trading within this zone, and whether it can hold or not is yet to be determined. If the price breaks out to the downside, we can expect lower prices for $APT. However, if it manages to hold the range lows, we could potentially witness more upside.
LTF | BTC, ETH & APT
Bitcoin | H4
In a shorter time frame, $BTC has managed to surge above the range highs. If the price can maintain its position above these highs, we may very well see further upside. Due to the stop losses and liquidity resting at this level, Bitcoin might retest its most recent highs. However, if the reaction at this level is short-lived and Bitcoin re-enters the range, more downside could be expected, potentially moving towards the range lows.
Ethereum | H4
In a shorter time frame, $ETH managed to push above its range highs, as suggested in yesterday's analysis, provided we held the mid-level. If we can maintain our position above the highs, we could potentially see further upside towards the next significant resistance area, which is where $ETH experienced a major sell-off previously. Conversely, if Ethereum re-enters the range and finds acceptance there, it could encounter lower levels within the range.
Aptos | H1
On a shorter time frame, $APT is hovering around the range lows. If the price manages to push above and hold the range lows, we could see further upside towards the levels depicted on the chart. However, if this movement is short-lived and APT breaks support, it could, in alignment with the higher timeframe perspective, experience another sell-off.
Disclaimer: Please note that all information, data, and technical analysis provided in this content are for educational and informational purposes only and should not be construed as investment advice, financial advice or trading advice.
Top Altcoin Gainers and Losers
Floki Inu FLOKI (+55.86%)
WOO Network WOO (+9.55%)
BitDAO BIT (+8.08%)
Kaspa KAS (-12.51%)
FTX Token FTT (-4.86%)
Render Token RNDR (-4.60%)
NFT Market Map
The DeGods collection has achieved the highest transaction despite the recovery of key NFT metrics. NFTGo.io reported that DeGod #5996 was sold for approximately $130,000 or 70 ETH on the Blur marketplace. The average sale size on Blur marketplace, according to Dune's latest data, is 6.309 ETH, making the sale of DeGod #5996 roughly 11 times larger than the average sale size.
Over $635 million in Ethereum NFT sales in April were wash traded, constituting 60% of all NFT trades for the month, according to CryptoSlam data. The data also revealed wash trading on Solana, BNB Chain, Polygon, Cardano, Flow and Arbitrum. Blur marketplace was the primary driver of wash trades on Ethereum, aiding over $3.4 billion worth of NFT sales flagged as wash trades this year.
This article has been refined and enhanced by ChatGPT.