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 Tuesday! Here's what you need to know today in crypto: |
- Despite a rally over the weekend, bitcoin remains lower by about 5% for May.
- The ECB finalizes digital euro prototypes.
- U.S. criminal charges against Sam Bankman-Fried don't warrant dismissal, prosecutors said.
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CoinDesk Market Index (CMI): 1,240 +0.6%
Bitcoin (BTC): $27,970 +0.3%
Ether (ETC): $1,912 +0.4%
S&P 500 futures: 4,232.50 +NaN%
FTSE 100: 7,583.03 −0.6%
Treasury Yield 10 Years: 3.81% −0.0 |
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Bitcoin (BTC) climbed above $28,000 after an agreement on a deal to raise the U.S. debt ceiling, but the crypto still appears on track for its first monthly loss since December. The leading cryptocurrency by market value traded as high as $28,400 late Sunday, up from about $25,900 the previous week. At press time, bitcoin is changing hands at just under $28,000. Prices, however, were still down about 5% for May in what would be the first monthly decline of the year, assuming things hold through Wednesday. Ether (ETH) at the moment is up modestly in May after trading in a tight range for most of the month. Analyst Matteo Bottacini at Crypto Finance AG said in a morning note that he sees potential for ether and other altcoins to outperform thanks to positive narratives surrounding the Ethereum network, such as the all-time high in staked ether. |
The European Central Bank (ECB) has finalized prototypes for a digital euro as it prepares to take a decision later this year over whether to develop the EU's fiat currency in a new format, according to reports released on Friday. The ECB says its potential central bank digital currency (CBDC) can be designed to boost innovation, but appears more skeptical about using Web3-style distributed ledger technology and smart contracts. "This exercise shows that it is possible to smoothly integrate the digital euro design choices into the existing payment landscape while leaving ample scope for innovative features and technologies," ECB Executive Board member Fabio Panetta said in a letter to the European Parliament's Irene Tinagli, adding that findings "will serve as input for both the functional and technical design of a digital euro." Criminal charges against Sam Bankman-Fried – including technicalities around his extradition back to the U.S. and campaign finance violations – are valid, prosecutors said in court filings from Monday. U.S. lawyers were responding to early May pretrial motions from Bankman-Fried's attorneys to dismiss most charges levied against him. Lawyers for the former head of failed crypto exchange FTX cited procedural issues, the irrelevance of some U.S. laws given FTX's non-U.S. location, and allegations that exceeded the agreed extradition terms. Bankman-Fried's motions did not seek to dismiss securities fraud and money laundering charges. With regards to arguments that the Bahamas needed to approve any charges prior to extradition, prosecutors contended that the U.S. treaty with the Caribbean nation allows for post-extradition charges with the consent of the extraditing country, and any charges presented post-extradition in new indictments do not violate this rule. |
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Market Insight: Dogecoin Is Unusually Calm
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Dogecoin (DOGE), the meme cryptocurrency known for its rapid price moves, has been unusually calm this year, with volatility lower than market leaders bitcoin (BTC) and ether (ETH) by a significant margin. One technical analysis indicator called Bollinger bandwidth suggests it may be the calm before the storm. The indicator illustrates periods of varying volatility relative to the price gyrations and is calculated by dividing the spread between the Bollinger bands by the 20-day simple moving average (SMA) of the cryptocurrency's price. Bollinger bands are volatility lines placed two standard deviations above and below the 20-day SMA average of prices. |
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- The chart shows 1.4 million addresses have accumulated over 700,00 bitcoin in the price range of $27,167 and $27,976.
- The range is likely to act as a solid support, according to onchain analyst Ali Martinez.
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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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Bitcoin On Track For First Monthly Loss Of The Year