Crypto Weekly Newsletter

Crypto and Macro Weekly Recap

Cryptocurrencies outperformed the US and EU equity markets, with Ether (ETH) trading at approximately 1,911 USDT at the close of the week, up by 5.8% compared to the previous week, while Bitcoin ended the week at 28,086 USDT, up by almost 5.0%. Meanwhile, the US stock market closed higher, with the NASDAQ index increasing by 2.5% and the S&P 500 up by 0.3%. However, the European top 600 stocks index closed lower by 1.3%, and the Eurodollar also closed lower by roughly 0.3%.

On Friday, the US stocks hit a 9-month high, boosted by strong economic data and investor optimism that a deal on US debt ceiling will soon be reached. Investors have increased their bets that the Federal Reserve will continue raising interest rates, as data on Friday showed that the US consumer remains resilient.

The US CPI for April 2023 dropped to 4.9% p.a. compared to an expected 5.0%, while the core CPI edged lower to 5.5% from 5.6%. At the time of writing, the Fed fund rates target range stood at 5.00% – 5.25%, the highest level since mid-2007. However, the market is not yet pricing in higher for longer rates, with expectations that slower growth and the possibility of recession will force the Fed to cut rates later this year. Once the US debt ceiling stand-off is resolved, investors will refocus their attention onto US inflation and fund rates.WHAT TO WATCH FOR: The next monetary policy meeting for the FED: June 13-14th, 2023 and for the ECB: June 15th, 2023; US headline and core CPI figures for May 2023 will be released June 13th, 2023, at 08:30 AM ET.

Performance for week 21

The Digital Asset market sentiment (Crypto Fear & Greed Index) went up by 3 points to 52/100, indicating Neutral, compared to a week ago. The Total Cryptocurrency Market Cap gained around 0.7% compared to a week ago and remains around 1.126 billion. Ethereum (ETH)’s Dominance increased to 19.5% while Bitcoin (BTC)’s Dominance slightly dropped to 46.2%.

Weekly Performance of Top Cryptocurrencies

Bitcoin price of $27,923.12 is up 2.64% in the last 24 hours and up 4.39% in the last 7 days.

Bitcoin (BTC) Technical Analysis. See Technical Analyses for 60 cryptocurrencies.
Trade setup: After topping out at $31K, price has been consolidating in a Channel Down pattern. We wait for a breakout. Bullish breakout above $28K would indicate Uptrend resumption, with upside to $32K resistance. Bearish breakout below $25K would indicate onset of downtrend, with downside risk to $21.5K thereafter.

Source: altfins.com

Top projects with the highest Total Value Locked (TVL) include Lido, Maker, AAVE

Total Value Locked (TVL): represents all the assets that are currently being staked in a specific Protocol. It measures overall health of a project and investors can see how much value people are willing to lock up in a particular project’s smart contract. The higher the TVL, the more confidence people have in the project, presumably because it generates some value to the users.

Total Value Locked (TVL)

Former Bitmex CEO Arthur Hayes is expecting to see significant Bitcoin volatility in the latter half of the year, caused by a “powder keg” explosion from the United States banking crisis and soaring national debt. Read more.
DeFi saw another multimillion-dollar rug pull this past week, and the Multichain saga continues to spiral out of control. Read more.
Bitcoin Core has now rolled out Version 25.0. The most recent update includes numerous new features, bug fixes, performance enhancements, and translation updates. Read more.