The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Welcome to Tuesday Here's what you need to know today in crypto: |
- The amount of staked ether has surged since the Shanghai upgrade.
- Crypto exchange OKX is aiming to hire up to 100 people in France over the next three years.
- MicroStrategy is an attractive alternative to Coinbase for investors, said Berenberg.
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CoinDesk Market Index (CMI): 1,209 +1.8%
Bitcoin (BTC): $27,312 +1.9%
Ether (ETC): $1,855 +2.2%
S&P 500 futures: 4,201.25 −0.1%
FTSE 100: 7,790.87 +0.3%
Treasury Yield 10 Years: 3.72% +0.0 |
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Interest in staking ether, i.e., locking coins in the Ethereum network to earn passive yield, has surged since implementation of the Shapella, or Shanghai upgrade on April 12. Data tracked by Glassnode shows more than 4.4 million coins have been deposited into the staking contract since April 12, taking the total amount of staked tokens to 22.58 million. "The surge in demand for staking probably originates from large ether holders, who prefer not to liquidate their holdings and instead seek to generate passive income," analysts at Bitfinex said in a weekly report shared with CoinDesk Tuesday. |
Cryptocurrency exchange OKX is targeting France as a regional hub in Europe with plans to hire around 100 people there in the next three years. The Seychelles-based firm has filed an application to become registered as a Digital Asset Service Provider (DASP), looking to join 74 other companies that have so far won regulatory approval from that country's Financial Markets Authority. It plans to establish a "substantial" physical presence in France, said Tun Byun, the company's head of global government relations. France last year emerged as the destination of choice for Binance as a European Union hub following its DASP registration. MicroStrategy (MSTR) represents an attractive alternative to Coinbase (COIN) for investors looking to gain exposure to the cryptocurrency sector, German investment bank Berenberg said in a report Monday. Investors who are very bearish on Coinbase shares and are inclined to short the stock should look at pairing it with a long position in MicroStrategy, the report said, noting that the correlation between the two stocks since Coinbase went public via a direct listing in April 2021 is 0.96. Berenberg says macro drivers of demand for bitcoin are bullish for MicroStrategy shares, and investor concerns over de-dollarization - or the weakening of the U.S. dollar's dominance - have helped to put a more positive spotlight on bitcoin in recent months. |
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Market Insight: Crypto Funds See 5th Week of Outflows
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Digital asset investment products have witnessed outflows for the fifth consecutive week as bitcoin (BTC), the world's largest cryptocurrency by market capitalization, has trended lower in May. Outflows last week came to $32 million, pushing the total during the five-week streak to $232 million, according to a report from CoinShares. Investors withdrew $33 million from bitcoin products alone last week, meaning BTC funds yet again dominated the outflow – as they have throughout the five-week period. Bitcoin began the year nearly doubling in price and surpassing $30,000 in April for the first time since mid-2022. The rally has since stalled, with the crypto stuck in a tight range around the $27,000 level for the past few weeks. |
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- The chart shows the market-implied probabilities for the benchmark U.S. interest rate over the coming months.
- Investors do not foresee a notable decline in the interest rate anytime soon as policymakers continue to discount recession talks and favor a higher for longer stance.
- Per crypto asset management firm Blofin, the low probability of rate cuts means the crypto market may remain under pressure and the situation may improve at the end of the year.
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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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