Federal authorities have spotlighted critical deficiencies in the crisis management strategies—known as “living wills”—of four major U.S. banks, signaling a push for stronger safeguards against financial turmoil. The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve announced that plans from Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase fell short of expectations, setting […]
Bitcoin News
QCP Capital Cites ‘Lack of News Flow’ for Bitcoin’s Price Decline Amid Market Doldrums
On Wednesday at 11 a.m. EDT, bitcoin hovered just around the ,000 mark. QCP Capital published its market commentary, attributing the downturn in the crypto economy to a lack of news flow and stagnant markets. In such a market, with minimal positive news to spur buying, existing crypto holders may lose confidence and patience. Crypto […]
Bitcoin News
Block Earner Co-Founder: Lack of Regulation Limits Australian Crypto Market to Token Sales Only
Regulation through enforcement often yields suboptimal outcomes for all stakeholders, including consumers, as it creates a negative stigma around industry companies,” asserted the co-founder of an Australian crypto startup. The co-founder expressed optimism that the Australian Securities and Investments Commission’s recent court setback would encourage Parliament to establish a regulatory framework for the Aussie crypto […]
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Putin Criticizes U.S. Dollar’s Lack of Gold Backing, Calls for Alternative Payment Systems
Russian President Vladimir Putin criticized the United States for its abandonment of the gold standard, remarking in a Sputnik-released video that the U.S. dollar is now a trust-based currency without tangible backing, a decision underscored by the absence of gold equivalence. This critique arrives during efforts by BRICS countries to diminish reliance on the U.S. […]
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American Securities Association Sues SEC Over Lack of Transparency in Enforcement Actions
The American Securities Association (ASA) filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) on Thursday for failing to comply with the Freedom of Information Act (FOIA). The ASA seeks to compel the SEC to disclose records related to its “recordkeeping sweep initiative” that imposed penalties on broker-dealers for retaining off-channel communications, such […]
Bitcoin News
Indian Central Bank RBI Warns Retail Investors of Crypto’s Lack of Accountability and Stability
The Reserve Bank of India (RBI)’s May 2024 bulletin warns retail investors that “the crypto ecosystem lacks accountability and stability and is marked by regulatory ambiguity.” The Indian central bank also cautioned that some cryptocurrency systems may be “prone to crisis without safeguards.” RBI Bulletin’s Crypto and Defi Warnings India’s central bank, the Reserve Bank […]
Bitcoin News
Bybit CEO Dismisses Hacking, Insolvency Claims; Says Rumors Lack Factual Basis
Ben Zhou, co-founder and CEO of Bybit, has dismissed rumors circulating on social media that the cryptocurrency exchange has been hacked or is insolvent. Zhou stated that these rumors are not supported by facts, and users should be cognizant of this. To substantiate his dismissal of the rumors, Zhou directed social media users to the […]
Bitcoin News
Bitcoin Price Drop Below $70,000 Apparently Driven By Lack Of Interest, Glassnode Data Shows
On-chain analytics platform Glassnode has provided insights into why the Bitcoin price recently dropped below ,000. The platform suggested that the flagship isn’t yet seeing enough demand, which could send its price to new highs.
Demand For Bitcoin Is Still Modest
In one of its latest market reports, Glassnode mentioned that “the rate at which new capital is flowing into the Bitcoin network has slowed down considerably from its peak.” They made this assertion based on the Realized Cap metric, which measures the value of each Bitcoin based on the last time it was traded. Glassnode claimed that Bitcoin’s Realized Cap is currently at 4 billion.
The platform further revealed that the injection of liquidity into Bitcoin has cooled off since the flagship crypto hit an all-time high (ATH) of ,750. This is in stark contrast to the period before Bitcoin hit that ATH, with Glassnode noting that the flows into Bitcoin back then were “extremely sharp, culminating at a value of .38 billion daily.”
Meanwhile, Glassnode stated that the Realized Cap “remains in positive profit-dominated territory and is returning towards an equilibrium position.” However, they noted that Bitcoin’s modest demand was still able to spark this recent rally thanks to the “declining sell-side headwinds from mature investors.”
Basically, Glassnode suggested that things were looking up for Bitcoin but that it could be way better if there were more capital inflows. There could indeed be an increase in capital inflows soon enough, considering that the Spot Bitcoin ETFs have broken their streak of net outflows and are once again recording impressive net inflows into their funds.
Data from Farside Investors shows that these funds have already seen almost 0 million in net inflows this week. Specifically, these Bitcoin ETFs recorded a net inflow of 5.7 million on May 21 alone. That day was also BlackRock’s iShares Bitcoin Trust (IBIT) most profitable day yet, with the fund taking in 0 million.
Some Positive Key Takeaways
Glassnode also assessed some other vital on-chain metrics, which provided some positives for Bitcoin’s future trajectory. The platform noted that there has been a “large decline” in Bitcoin’s Sell-Side Risk Ratio, which “suggests the market has found a degree of equilibrium over the course of this correction.”
To assess market volatility, they also measured the percent range between the highest and lowest price ticks over the last 60 days. They concluded that “volatility continues to compress to levels typically seen after lengthy consolidations and prior to large market moves.”
Meanwhile, Glasnode revealed that 2.14M BTC out of the Short-term holder (STH) supply, currently at 3.36M BTC, fell into an unrealized loss following the recent market correction. They claim that this suggests that many of the BTC held by this category of investors are held at an unrealized loss, which reduces the risk of top-heaviness developing.
Ethereum Price Reclaims 100 SMA But Bulls Still Lack Strength To Clear Hurdles
Ethereum price started a recovery wave above the ,000 zone. ETH is now above the 100-hourly simple moving average and facing hurdles.
- Ethereum found support at ,820 and started a recovery wave.
- The price is trading above ,100 and the 100-hourly Simple Moving Average.
- There is a key bullish trend line forming with support at ,110 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum if it clears the ,165 resistance zone.
Ethereum Price Holds Ground
Ethereum price remained stable and started a recovery wave above the ,000 level, like Bitcoin. ETH was able to clear the ,050 and ,120 resistance levels.
However, the bears were active near the ,165 resistance zone. A high was formed at ,168 and the price started a downside correction. There was a minor move below the ,150 level. The price is now stable above the 23.6% Fib retracement level of the upward move from the ,813 swing low to the ,168 high.
Ethereum is also above ,100 and the 100-hourly Simple Moving Average. Besides, there is a key bullish trend line forming with support at ,110 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
Immediate resistance is near the ,165 level. The first major resistance is near the ,200 level. The next key resistance sits at ,250, above which the price might gain traction and rise toward the ,350 level. If the bulls remain in action and push the price above ,350, there could be a drift toward the ,500 resistance. Any more gains could send Ether toward the ,620 resistance zone.
Another Decline In ETH?
If Ethereum fails to clear the ,165 resistance, it could start another decline. Initial support on the downside is near the ,100 level and the trend line. The first major support is near the ,000 zone or the 50% Fib retracement level of the upward move from the ,813 swing low to the ,168 high.
The main support is near the ,940 level. A clear move below the ,940 support might push the price toward ,820. Any more losses might send the price toward the ,650 level in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – ,000
Major Resistance Level – ,165
JPMorgan Warns of Increased Risk for Crypto Market Due to Tether’s ‘Lack of Regulatory Compliance and Transparency’
JPMorgan has warned of increased risk for the crypto market resulting from Tether’s “lack of regulatory compliance and transparency.” The global investment bank’s analysts explained that other stablecoin issuers that have been more compliant with existing regulations are likely to benefit from the coming regulatory crackdown on stablecoins and gain market share.
JPMorgan Warns About Tether and Crypto Market Risks
Global investment bank JPMorgan released a report on Thursday cautioning that the rapid expansion of Tether’s USDT stablecoin is a risk for the crypto market overall. USDT is the world’s largest stablecoin, with a market capitalization exceeding billion at the time of writing.
JPMorgan’s analysts explained that Tether’s “lack of regulatory compliance and transparency” is an increasing risk for the overall crypto market. Noting that Tether falls short of competitor Circle, the issuer of USDC, when it comes to regulatory compliance for their stablecoins, the analysts wrote:
Stablecoins issuers that have been more aligned with existing regulations are likely to benefit from the coming regulatory crackdown on stablecoins and gain market share.
Responding to JPMorgan’s criticism of USDT and the risks to the crypto market, Tether CEO Paolo Ardoino stated:
Tether’s market domination may be a ‘negative’ for competitors including those in the banking industry wishing for similar success but it’s never been a negative for the markets that need us the most.
“We’ve always worked closely with global regulators to educate them on the technology and provide guidance on how they must think about it,” the executive added.
Tether faced a million fine from the U.S. Commodity Futures Trading Commission (CFTC) in 2021 for misrepresenting its reserves, specifically claiming that USDT was fully backed by U.S. dollars. Following the fine, the crypto firm has strived to improve transparency by issuing quarterly attestations of its operations and finances. Tether reported a profit of .2 billion for 2023.
What do you think about JPMorgan analysts’ warning regarding Tether, USDT, and the risks to the overall crypto market? Let us know in the comments section below.