Last Week in Crypto: Highlights in the World of Cryptocurrencies
As we kick off another exciting week on Monday, May 27th, 2024, at 9:00:20 AM EST (3:00:20 PM CET), we delve into the latest price action of the top ten cryptocurrencies, as per Coin Market Cap. Join us as we analyze these figures and anticipate how the market will unfold throughout the week. Subsequently, we will compare these prices with the closing figures of Friday, May 31st, 2024, at 6:00:00 PM EST (12:00:00 AM CET), to gain insights into the week’s market trends and fluctuations.
| CRYPTO | INITIAL | % CHANGE | FINAL |
|---|---|---|---|
| BTC | $68,692.81 | -1.64% | $67,564.03 |
| ETH | $3,924.17 | -3.57% | $3,784.03 |
| BNB | $601.47 | -1.17% | $594.45 |
| SOL | $166.84 | -0.22% | $166.48 |
| XRP | $0.5289 | -2.08% | $0.5179 |
| TON | $6.3872 | -0.58% | $6.35 |
| DOGE | $0.1693 | -5.55% | $0.1599 |
| ADA | $0.4616 | -2.90% | $0.4482 |
| AVAX | $37.34 | -2.62% | $36.36 |
Crypto Voters Shake Up the 2024 Election
Crypto voters are already influencing the 2024 election, with recent developments signaling their growing impact. In May, Congress passed two pro-crypto bills with surprising bipartisan support, including from leading Democrats who defied the White House. This shift, combined with the approval of Ether ETFs and pro-crypto rhetoric from Donald Trump, suggests that crypto voters could significantly sway the upcoming presidential race.
Key events include the Senate’s unexpected bipartisan vote to overturn an SEC rule restricting banks from holding crypto, and the House passing the FIT21 Act, moving crypto tokens under the Commodity Futures Trading Commission. These moves reflect a newfound political will to engage with crypto regulations, driven by the awareness of crypto voters’ influence.
Crypto advocacy is becoming a bipartisan issue, with even traditionally anti-crypto Democrats reconsidering their stance. Surveys show that a significant portion of swing- state voters consider crypto a crucial election issue, underscoring its potential to shape election outcomes. With both parties now courting crypto voters, the 2024 election is set to be a pivotal moment for the crypto industry.
Bitcoin Futures Open Interest Hits 16-Month High: $70,000 Next?
Bitcoin futures open interest has surged to a 16-month high, signaling bullish sentiment despite a recent 4% price dip to $67,500. Support at $66,000 remains strong since May 17, reassuring bulls. As investors move away from fixed-income assets, Bitcoin benefits from macroeconomic trends and positive regulatory developments. The current funding rate for perpetual futures is 0.35% per week, with a 14% 3-month futures premium indicating room for growth without immediate liquidation risks. This heightened interest suggests Bitcoin could soon rally past $70,000.
Ethereum ETF June Launch Possible: BlackRock Files Key Update
Ethereum spot ETFs might debut by late June, thanks to BlackRock’s recent update to its Form S-1 for the iShares Ethereum Trust (ETHA). Analysts see this move as a strong indication that the SEC and issuers are progressing toward approval. Bloomberg’s Eric Balchunas predicts a June launch is plausible, though early July remains more likely. BlackRock’s filing also detailed a $10 million seed investment from a BlackRock affiliate. This development could propel ETH to new highs, despite potential price pressures from the Grayscale Ethereum Trust’s anticipated market impact.
Crypto Market Braces for $875M Token Unlocks in June
In June, the crypto market is set to absorb nearly $875 million in unlocked tokens from over 30 blockchain projects, including Aptos, Arbitrum, Starknet, and Sui. Token unlocks, which release previously locked tokens to prevent market dumping, could significantly impact prices. Arbitrum will unlock 92.65 million ARB tokens ($105.6M) on June 16, while Aptos will release 11.1 million APT tokens ($102.6M) on June 12. Starknet will unlock 64 million STRK tokens ($78M) on June 15, and Optimism will release 31.34 million OP tokens ($78M) in June. Sui will unlock 65 million tokens ($66M) on June 1. These large token releases are expected to create market volatility and could put downward pressure on prices.
Bullish Bets: Ether Options Open Interest Peaks at $5,000 Calls for June Expiry
Ether options are showing strong bullish sentiment as open interest concentrates at $5,000 calls set to expire at the end of June. Analysts highlight traders employing call spreads between $4,000 and $5,000, indicating expectations of a price rise. SynFutures co-founder Rachel Lin and ǪCP Capital analysts point out significant buying of $4,000 to $5,000 call spreads, with a put-call ratio of 0.56 further underscoring the bullish outlook. While the market awaits clarity on spot Ether ETF launches, the current trend suggests a potential rally if positive developments unfold.
JPMorgan Warns of Negative Initial Reaction to Spot Ether ETFs
JPMorgan analysts predict a tepid market response to the launch of spot Ethereum ETFs, expecting significantly less demand compared to their Bitcoin counterparts. Factors contributing to this include Bitcoin’s first-mover advantage, the lack of a halving event for Ethereum, and the removal of staking options from the ETF filings. The analysts foresee potential outflows from the Grayscale Ethereum Trust as speculative investors take profits, which could exert downward pressure on Ethereum prices. They estimate modest net inflows of $1 billion to $3 billion for spot Ether ETFs in 2024, with the possibility of tripling if staking is later added.
Sources:
https://cointelegraph.com/news/bitcoin-futures-16-month-high-70k-target
https://cointelegraph.com/news/javier-milei-silicon-valley-tech-meetings
