  Everything you need to make sense of the crypto markets and beyond By the CoinDesk Markets Team Edited by Lawrence Lewitinn, Managing Editor, Global Capital Markets May 28, 2021 Sponsored by  (Price data as of May 28 @11:00 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.
Good morning. Here's what we're writing about:
Check out the CoinDesk TV show "First Mover," hosted by Christine Lee, Lawrence Lewitinn and Emily Parker at 9:00 a.m. U.S. Eastern time. Today the show will feature guests:
Biggest Movers These are the biggest movers in the CoinDesk 20 over the past 24 hours:
Gainers:
Losers:
The CoinDesk 20 are 20 digital assets filtered from the larger universe of thousands of cryptocurrencies and constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges.
Market Moves by Omkar Godbole  Bitcoin Drops, Stocks Rally Ahead of Biden's Budget Announcement Bitcoin is nursing losses on Friday despite hopes of more inflation-boosting U.S. stimulus to come. On Friday, President Joe Biden is set to release his first full budget, seeking $6 trillion in federal spending for the fiscal year 2022 and $8.2 trillion by 2021, The New York Times reports.
The proposal shows the Biden administration remains undeterred by recent inflation fears and is unlikely to close the liquidity tap anytime soon, having already pumped trillions of dollars into the system to counter the economic effects of the coronavirus pandemic since March 2020.
That's potentially a bullish development for bitcoin, which is widely touted as digital gold. However, the leading cryptocurrency is changing hands near $35,800 at press time, representing a 7% drop on the day. The decline comes a day after buyers failed to establish a foothold above the $40,000 mark.
However, the prospect of more liquidity is pushing stocks higher. The pan-European Stoxx 600 index is trading 0.43% higher at new record highs above 445 points, according to Investing.com. Futures tied to the S&P 500 are also hinting at a positive start to trading on Friday with a 0.5% gain.  Bitcoin prices, May 27 - 28, 2021 (CoinDesk) Fears that the Federal Reserve may raise the interest rate to counter inflation could be keeping the cryptocurrency under pressure. That's because rate hikes dilute the appeal of the store-of-value assets like bitcoin.
According to Bloomberg, rates traders have boosted bets that the Fed will raise borrowing costs next year, much earlier than policymakers have indicated.
The rate hike fears may amplify, if the core personal consumption expenditure (core PCE) – the Fed's preferred measure of inflation – blows past expectations. That could lead to a deeper drop in bitcoin. The April data is scheduled for release at 12:30 UTC today.
However, analysts expect the cryptocurrency to see range play in the short term. "From a technical point of view, BTC is in a consolidation phase. We expect that there will be choppy trade between $30,000–40,000 for the next two weeks," Matthew Dibb, co-founder and COO of Stack Funds, said.
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Technician's Take
by Damanick Dantes
Bitcoin Remains in Corrective Phase Below $40K; Further Downside Expected
Bitcoin (BTC) failed to sustain moves above $40,000 resistance on Thursday as the broader uptrend weakens. The cryptocurrency was trading around $36,000 at the time of writing and upside appears limited into the weekend.
A bearish trend reversal is on watch after months of slowing momentum, consolidation, and a downside break below $50,000 and $40,000. Bitcoin is down about 37% month-to-date and has experienced a series of sharp drawdowns similar to 2017 which preceded a bear market.
Daily bitcoin chart shows support resistance levels with oversold RSI (Source: TradingView)
- The relative strength index (RSI) on the daily chart has been oversold over the past week as price held support around $30,000. However, the RSI is not yet oversold on the weekly chart which suggests price upside should remain limited around $40,000.
- Bitcoin is below the 100-day and 200-day moving averages. This indicates the corrective phase that began earlier this month remains in effect.
- On intraday charts, bitcoin failed to hold support. Further downside towards $33,000 could encourage short-term buyers and stabilize the current decline.
Despite signs of a broader trend reversal, there are still short-term opportunities for active traders. "BTC can be very volatile, especially compared to assets in traditional markets," wrote Justin Chuh, senior trader at Wave Financial in an email to CoinDesk.
"No one is borrowing to short spot BTC, we sill have an upward sloping forward curve, and downside protection remains relatively light," said Chuh, who added that support will need to hold above $30,000, or otherwise bitcoin would be down on the year.
Read the original story here:
Bitcoin Remains in Corrective Phase Below $40K; Further Downside Expected
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BOLO
Be on the look out for some of these upcoming events:
- 12:30 UTC (8:30 a.m. ET):
- Core inflation (April). Est: 0.6%
- Consumer spending. Est: 0.5%
- Personal income. Est: -14%
- Consumer sentiment (May). Est: 83.0
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ICYMI
In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:
"First Mover's" special expanded edition covering today's hot topics and news from Consensus by CoinDesk 2021 on the final day of the conference. Today's guests include Josh Swihart of Electric Coin Company on privacy coins, Dr. Tom Robinson of Elliptic discussing the Colonial Pipeline case and Dan Held of Kraken.
"First Mover" takes a first look at Day 4 of Consensus by CoinDesk 2021 and dives into the news and big themes at this year's conference, not the least of which is inflation. Hear what former U.S. Treasury Secretary Larry Summers had to say. Today's guests include Sandeep Nailwal of Polygon, one of Mark Cuban's new investments. Nailwal is also leading COVID-19 relief efforts in India. Marc Chandler of Bannockburn Global Forex joins our markets discussion and Mariana Gomez de la Villa of ING on its study of decentralized finance (DEFI) and the future of banking.
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Latest Headlines
- No One Can Shut Down Bitcoin, Says Binance CEO CZ
Regulatory scrutiny around Binance is likely due to a lack of clarity from governments, CZ said.
- The Node: Regulating Intermediaries in a DeFi World
Leading DeFi lawyers ask: Why apply rules designed for centralized finance to a world where intermediaries are code?
- Ark's Cathie Wood Blames Crypto Crash on 'ESG Movement'
"A lot of institutional buying went on pause" due to concerns about mining's environmental impact, the influential fund manager said at Consensus 2021.
- NFL Legend Tom Brady Has 'Definitely' Invested in Crypto
The seven-time Super Bowl champion says he doesn't see crypto going away. As for which coins he owns, the seven-time Super Bowl champion didn't say.
- Liquidity Mining Will Return to Uniswap 'Very Soon,' Founder Says
"We're kind of seeing the community build this out," Hayden Adams said at Consensus 2021.
- State of Crypto: What Regulators Said at Consensus 2021
Regulators are getting more involved in crypto, or so they said at this year's Consensus event.
- Australian Tax Office Warns Investors to Report Crypto Gains and Losses
The ATO will inform around 100,000 crypto investors to review their previous years' returns and ensure they're correct.
- DocuSign to Acquire 'Smart Agreement' Firm Clause
DocuSign will use Clause's technology in its Agreement Cloud platform.
- BurgerSwap Hit by Flash Loan Attack Netting Over $7M
The attacks marks yet another exploit of a BSC-enabled DeFi protocol.
- Massachusetts Judge Rules Robinhood Cannot Block Regulator's Case
Robinhood was trying to stop an enforcement action alleging that the platform encourages inexperienced users to make risky trades without safeguarding limits.
- Fed Research Finds Private Digital Currencies Can Be 'Attractive Cash Alternative' for Firms
The Richmond Fed looks at if and when it may be beneficial for firms to issue a digital currency in a new brief.
- Sweden's Central Bank to Test Digital Currency With Handelsbanken
The Riksbank will partner with Handelsbanken to test how the e-krona might work in the real world.
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
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