Following the European Central Bank’s (ECB) rate hike, bitcoin fell below the US$29,000 mark on Friday morning in Asia. Ether fell below $1,900, while the other top ten non-stablecoin cryptocurrencies fell. The lost men were led by Solana’s SOL. Following losses on Wall Street, US equity futures were trading higher on Thursday, amid renewed concerns about the US banking system and a possible economic slowdown.
Bitcoin declines, Solana leads the losers
Bitcoin fell 0.40% to $28,949 in Hong Kong in the 24 hours to 09:00, according to data from Coinmarketcap, down 1.88% for the week. The world’s largest cryptocurrency is up more than 70% year-to-date but is down about 6.6% from its 30-day high of US$31,005 on April 14.
Bitcoin and other cryptocurrencies plunged as investors digested recent interest rate hikes in the US and Europe, which “could put cryptocurrencies under more pressure in the near term as some investors turn more cautious and safe-haven assets like Treasuries become more attractive”.
“However, in the medium term, crypto markets may benefit from the expected stabilization and eventual fall in interest rates (in the US),” said Pleshok, who anticipated the Federal Reserve’s changing rhetoric, which could encourage more risk-taking by investors. can promote.
Fed Chairman Jerome Powell said his agency is ready to hike rates further if “more restraint on monetary policy is needed,” sending mixed signals to markets.
Ether fell 1.21% to US$1,880 for a weekly loss of 1.55%.
Most of the other top 10 non-stablecoins are also trading lower, with the exception of XRP and Tron, which are up 0.12% and 0.48% over the past 24 hours.
Solana’s SOL led the losses, falling 2.45% to $21.80 and trading down 2.88% for the week.
The total crypto market capitalization fell by 0.71% in the last 24 hours to USD 1.19 trillion. The total trading volume fell by 23.57% to USD 32.38 billion.
Ethereum NFT sales drop
In the non-fungible token (NFT) market, the Forecast 500 NFT Index was down 0.74% to 3,640.20 in Hong Kong in the 24-hour period as of 09:00, down 1.83% for the week.
According to data from blockchain intelligence platform IntoTheBlock, the Ethereum blockchain has seen its NFT sales volume drop by more than 27% in the past 24 hours, amid a rise in average transaction fees on Ethereum, which stood at US$16.74 on May 4. Was. , an increase from US$3 at the beginning of the year.
According to NFT data aggregator CryptoSlam, over US$635 million in Ethereum NFT sales in April were wash trades, accounting for nearly 60% of all NFT trades on the blockchain for the month. Wash trade refers to an investor acting as both a buyer and seller of a financial instrument that generates deceptive trading volume and potentially manipulates prices. This practice is illegal in the US securities markets.
According to CryptoSlam, current wash trades on Ethereum are primarily driven by investors cultivating points on the Blur marketplace, the platform’s loyalty system that incentivizes users’ bids and listings of NFTs.
“Wash trading is expected to continue and potentially increase on Ethereum as traders use instruments that provide liquidity like Bendao, NFTFIs, and Blur’s new Blend Lending Protocol,” said Yehuda Petscher, an analyst at CryptoSlam.
US banking crisis continues
US stock futures were trading higher in Hong Kong as of 9:00 am. Dow Jones Industrial Average futures rose 0.24%. S&P 500 futures rose 0.40%. And Nasdaq Composite futures added 0.51%.
All three indices closed with losses on Thursday due to growing concerns in the US banking system. PacWest Bancorp, a California-based bank, saw its share price plunge more than 50% on Thursday after the lender reportedly considered strategic options including a sale, sparking a slump in several regional banks.
“Ongoing issues in the banking sector could heighten concerns about the ability of traditional finance to withstand financial shocks and push more investors towards digital assets. has already benefited and may continue to do so if a new downturn unfolds,” said Peleshok from CPT Markets.
On the economy front, US initial jobless claims rose by 13,000 to 242,000 in the week ended April 29, beating expectations of 240,000 and pointing to a slowdown in the labor market, Bloomberg reported on Thursday.
The US economy could enter a mild recession in the third or fourth quarter of 2023, given “restrictive interest rates, credit tightening from regional banking turmoil and weakness in several leading indicators”, according to a report by Independent Commodity Intelligence Services on Thursday.
The Fed’s next move on interest rates is on June 14. Analysts at CME Group now expect a 99.6% chance that the Fed will keep rates unchanged at 5% to 5.25%, and a 0.4% chance for a 25 basis point rate cut.
Meanwhile, in Europe, the ECB on Thursday decided to raise its interest rate by 25 basis points to 3.25% and signaled more monetary tightening.
Source: forkast.news
