Cryptocurrency Market Performance
The total market value of cryptocurrencies is 1.24 trillion, with BTC accounting for 53.27%.
Mainly due to the continuous outflow of ETFs, the market entered a stage of rapid decline from April 30 this week. From May 1 to 2, the market fell to a staged low, BTC fell below $57,000, and ETH fell below $2,900. Since March this year, the Bitcoin Rainbow Chart has entered the Consider Buying range for the first time. The market rebounded after May 3, and BTC has rebounded to more than $63,000 over the weekend. During the decline, the altcoins fell sharply. During the recovery period, MEME rebounded quickly. Among them, the ranking of gains includes DEGEN, DOGE, WIF, BOME, POPCAT, etc. This week, the Fear Greed Index showed neutral for 3 days and greed for 4 days.
Understand now
Review of the weeks major events
1. Bernstein Report: The slowdown in Bitcoin ETF inflows is a short-term pause, not the beginning of a negative trend;
2. Antminer S 19, Shenma M 30 S+ and other series of mining machines have reached the shutdown price;
3. Hong Kongs six Bitcoin and Ethereum spot ETFs had a total transaction volume of approximately HK$87.58 million on the first day of listing;
4. AnimeCoin: Azuki, Elementals and Beanz NFT holders can participate in Gacha Grab to earn points and collect Gachapons;
5. Eigen Foundation: Pendle or other DeFi contract users will not be penalized in the airdrop distribution, and the second season will consider participating users after the March 15 snapshot;
6. On May 1, according to Coinglass data, the entire network had a liquidation of US$325 million in the past 24 hours, of which long orders had a liquidation of US$265 million and short orders had a liquidation of US$60.0835 million;
7. On May 1, according to a live report by reporter @nikhileshde, CZ was eventually sentenced to 4 months in prison;
8. Celsius Network destroyed 652.2 million CELs it held. The destruction amount accounted for 94% of the total supply, which is worth about $83.2 million at the current market price;
9. MicroStrategy is building a decentralized identity protocol based on the Ordinals protocol;
10. Aztec Labs gives up the ownership of zk.money, and users need to withdraw money by themselves;
11. Coinbases revenue in the first quarter increased by 73% month-on-month to US$1.6 billion, with a net profit of US$1.18 billion;
12. On May 4, Uniswap Labs announced a partnership with Robinhood, and users can now purchase cryptocurrencies using debit cards, bank transfers, or directly from their Robinhood balances in the Uniswap mobile app.
Macroeconomics
1. On May 2, the Federal Reserve maintained the benchmark interest rate at 5.25%-5.50% for the sixth consecutive time, in line with market expectations;
2. On May 5, according to the data on the Federal Reserves official website, as of April 30, the Federal Reserve had reduced its balance sheet by $77 billion in April, and its current balance sheet size has dropped below $7.4 trillion to $7.362 trillion;
3. The US court is scheduled to hear arguments between the SEC, Terraform Labs and Do Kwon on the compensation plan for the fraud case on May 22.
ETF
According to statistics: From April 29 to May 3, the net outflow of Bitcoin spot ETF was: US$434 million.
As of May 3, GBTC outflow totaled: $17.462 billion.
Bitcoin spot ETF total: $11.567 billion. (Down from last week’s total)
Predicting the future
Upcoming Events
Bitcoin Asia 2024 will be held in Hong Kong from May 9th to 10th. Bitcoin ecosystem projects, investment institutions, and Hong Kong Bitcoin spot ETF issuers will attend the summit.
Project Progress
1. Horizen will upgrade its network at block height 1,554,150 (expected at 11:00 on May 6). Binance plans to suspend token deposits and withdrawals on the Horizen (ZEN) network at 10:00 on May 6 (Beijing time) to support the network upgrade.
2. Gitcoin announced that the 20th round of donations will last until May 7. This round of G G20 will focus on funding open source software (OSS) projects in the Ethereum ecosystem. Of the total $1.4 million in matching funds, $1 million will be used specifically for four major OSS categories, including hackathon alumni, decentralized applications and applications, developer tools and libraries, and Web3 infrastructure; nearly $500,000 will be allocated to five community independent rounds;
3. The submission phase of the sixth season of the TRON Hackathon Competition, jointly organized by TRON, HTX DAO, BitTorrent Chain and JustLend DAO, will last until May 7, with a total prize pool of US$650,000, divided into five major tracks: Web3, Artistry, DeFi, Builder and Integration;
4. The Katla testnet of Taiko, the Ethereum second-layer network based on zkRollup, will be deactivated on May 10, and the latest EIP-4844 testnet Hekla has been opened to the public;
5. The official website of CommEx, the buyer of Binances Russian business, was closed at 18:00 on May 10. Binance announced its full withdrawal from the Russian market in September last year, and the relevant business will be sold to CommEX. Zhao Changpeng once said that Binance and CommEx only have a cooperative relationship, and he is not the ultimate beneficiary of CommEx.
Token Unlock
Galxe (GAL) will unlock approximately 5.18 million tokens at 8:00 on May 5, worth approximately US$23.5 million, accounting for 5.76% of the circulation.
Hotcoin is a 6-year-old licensed CEX with 6 million users, aiming to provide decentralized, secure and reliable digital currency trading and asset management services to users around the world.
Hotcoin Research is the research department of Hotcoin. The team is committed to providing objective, independent and comprehensive analysis, aiming to become an authoritative insight platform in the field of cryptocurrency. Analysts regularly publish articles with insights: industry insights, in-depth analysis of potential projects in popular tracks, tutorials on playing and making money with WEB3, etc., striving to show users the most friendly and authentic WEB3.
