Category: Cryptocurrency

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The memecoin market has surged, with its market cap reaching $58 billion and posting a 10% gain in the last 24 hours, outpacing the broader cryptocurrency market, which saw a 5.5% increase over the same period.

The top five memecoins, comprising around 77% of the total market cap, have seen significant gains. Notably, Shiba Inu recorded a rally of over 7% in the past 24 hours and 12% over the past week. Other major memecoins, such as dogecoin, pepe, and floki, have also experienced notable increases.

Wintermute analysts attribute the surge to “fast money,” with a focus on memecoins like $PEPE, $BONK, $FLOKI, and others. However, popular trader DonAlt warned of potential losses for memecoins, cautioning against heavy investments in a dog or cat-themed coins.

While debate ensues regarding the future of memecoins, the wider cryptocurrency market rallied following a softer inflation print. Bitcoin prices increased by about 2.5% after April CPI data came in lower than expected. Investors view this as a bullish sign, marking a potential regime shift after the U.S. Federal Reserve announced its intention to taper its quantitative tightening.

Despite the positive sentiment, analysts emphasize that inflation remains above 3%, and recent Producer Price Index data showed a third consecutive monthly increase. The market awaits further guidance from the Fed regarding its response to the inflation data.

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Analysts suggest that Bitcoin derivatives traders are willing to pay a premium for short-term downside protection, despite a more optimistic outlook for longer-term options distributions.

CF Benchmarks’ analysis of Chicago Mercantile Exchange (CME) options on bitcoin futures reveals that investors continue to pay elevated premiums for out-of-the-money (OTM) puts, indicating a bearish sentiment in the short term. This trend persists even after a softer U.S. Consumer Price Index (CPI) inflation report.

The analysts highlight a “flatter” volatility curve for longer-dated options, with a slight skew towards calls. This suggests a more positive outlook for Bitcoin’s longer-term prospects. They note that increased institutional involvement may contribute to this trend, as institutional investors tend to exhibit less extreme swings in sentiment.

Options, which provide traders with the right but not the obligation to buy or sell an underlying asset at a predetermined price, are being closely monitored for indications of market sentiment. While call options imply a bullish stance, put options suggest a bearish sentiment.

In related news, the Financial Times reports that the CME Group is considering launching bitcoin spot trading alongside its existing futures products. This move would cater to traders seeking regulated platforms for cryptocurrency transactions and could enable profit opportunities through basis trades, leveraging the difference between futures prices and spot prices.

While the launch of bitcoin spot trading on CME has not been finalized, it underscores the growing interest in regulated cryptocurrency trading platforms. CME Group, already a major player in bitcoin futures trading, declined to comment on the potential expansion.

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Shares of Coinbase (NASDAQ:COIN) fell nearly 8% on Thursday, dropping to $202.49, following a Financial Times report that the Chicago Mercantile Exchange (NASDAQ:CME) might soon offer spot bitcoin trading amid strong interest from its clients.

Cryptocurrencies were up on the day, with the CoinDesk 20 Index, which tracks 20 of the largest digital tokens by market capitalization, rising 0.91% over the past 24 hours. Bitcoin was up by half a percent, benefiting from Wednesday’s better-than-expected inflation report. Despite the drop, COIN is up 29% year-to-date, buoyed by the rally in crypto prices since the beginning of the year.

Chicago-based CME, the world’s largest futures exchange, has a history spanning more than a century and is a financial powerhouse. Until now, Coinbase has profited from being the most trusted crypto exchange in the U.S., but this advantage could be challenged if CME enters the spot bitcoin trading market.

Designated by U.S. regulators as a “systemically important financial market utility,” CME is subject to stricter supervision. Many investors believe this designation implies the government would prevent CME from failing in a financial crisis. CME is already the leading bitcoin futures exchange in the U.S. by open interest.

The exchange has been in discussions with traders interested in trading bitcoin on a regulated marketplace, sources familiar with the matter told the Financial Times. A significant barrier for traders in dealing with digital assets is the lack of trust in crypto exchanges, particularly after several high-profile failures, including the collapse of the once-popular crypto exchange FTX.

The recent launch of spot bitcoin exchange-traded funds has provided traders with a safer way to invest in bitcoin, with over 500 institutions allocating more than $10 billion to these funds within the first three months. An additional $40 billion came from retail traders.

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The US Securities and Exchange Commission has yet to decide on spot Ethereum exchange-traded funds. On May 16, Billy Markus, co-founder of Dogecoin, expressed his doubts about their approval, suggesting that the SEC is “compromised” and may reject the ETFs.

Markus made his skeptical comment in response to a social media post discussing the importance of spot Ether ETFs for the ecosystem and the potential impact of a negative decision on Ethereum. He tweeted, “nothing good will come out” of the spot ETH ETF application.

Markus’ comment reflects a broader pessimism about the SEC’s ability to make fair and unbiased decisions regarding Ethereum and cryptocurrency. Despite his skepticism, he believes the regulator’s decision on spot Ether ETFs won’t negatively impact Ethereum’s trajectory or the cryptocurrency market as a whole. This sentiment echoes the prevalent skepticism surrounding spot Ethereum ETFs.

Recently, finance lawyer Scott Johnsson suggested that Ethereum’s legal classification will play a crucial role in the upcoming ETF decisions, highlighting a key distinction in the SEC’s approach to Bitcoin and Ethereum. While Bitcoin’s security status wasn’t a major focus during spot ETF filings, Ethereum’s classification is receiving more regulatory scrutiny, indicating a shift in focus for digital assets.

The upcoming decision dates for VanEck and ARK Invest’s applications for Ethereum ETFs, scheduled for May 23 and May 24, respectively, have sparked intense speculation within the crypto industry. The potential approval of Ethereum ETFs carries symbolic importance, solidifying crypto’s legitimacy as an asset class and reaffirming its role in the evolving financial industry.

The SEC’s recognition of Ethereum’s non-security status, demonstrated by the approval of an Ethereum futures ETF for trading in October 2023, established a clear precedent for the approval of a spot Ethereum ETF. Experts believe any deviation from this path would create regulatory uncertainty and weaken market confidence.

Hong Kong’s approval of spot Bitcoin and Ethereum ETFs, as well as their trading, underscores the increasing global acceptance and recognition of the potential of Ethereum-based financial instruments.

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JPMorgan (NYSE:JPM) estimates that the current cost of mining Bitcoin has dropped to around $45,000, down from over $50,000. This decrease follows the quadrennial halving event last month, which cut miner rewards by 50%.

The hashrate, which measures the total combined computational power used for mining and processing transactions on the Bitcoin network, did not immediately fall post-halving as expected. According to JPMorgan, this delay was due to the launch of the Runes protocol, a new form of token creation that temporarily spiked transaction fees, boosting miner revenue and offsetting the reduced issuance rewards from the halving.

“This provided a temporary boost to miner revenue in the immediate aftermath of bitcoin halving,” analysts led by Nikolaos Panigirtzoglou wrote. However, the report noted that the increase in fees was short-lived, with user activity and fees dropping significantly in recent weeks. This decline highlights the ongoing challenge for bitcoin miners to maintain sustainable revenue, particularly in the post-halving environment.

As the Runes hype faded, network power consumption fell more than the hashrate, indicating that unprofitable miners with inefficient rigs have exited the network. The report explains that there’s a feedback loop with Bitcoin prices: as prices decline, more unprofitable miners are pressured to leave the network, leading to a larger drop in hashrate and mining costs.

JPMorgan does not foresee any near-term upside for Bitcoin prices due to several headwinds, including the lack of positive catalysts and diminishing retail interest.

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Mastercard (NYSE:MA) has announced the selection of five startups to participate in its digital assets program, which aims to foster the development of blockchain use cases.

The chosen startups will join Mastercard’s Start Path blockchain and digital assets program, focusing on the creation of blockchain use cases and user experiences.

Through this initiative, Mastercard (MA) will collaborate with industry experts and fintech firms to explore various applications of digital assets and blockchain technology in addressing real-world challenges.

In a press release issued on Wednesday, Mastercard (MA) highlighted its extensive experience in building a global payments network based on cards, positioning itself to connect regulated money, bank deposits, stablecoins, and central bank digital currencies (CBDCs) with startups’ specific use cases. The program aims to innovate new solutions and improve efficiencies in digital commerce user experiences.

The Five Selected Startups 

1. Kulipa: A French-based company that facilitates crypto payment card issuance for digital wallets.
2. Parfin: A UK-based firm specializing in enterprise-grade software products to assist financial institutions in adopting blockchain rails.
3. Peaq: Headquartered in Singapore, peaq offers permissionless, borderless digital infrastructure for real-world applications.
4. Triangle: A U.S.-based startup focusing on sustainability through a data platform that integrates climate data with finance.
5. Venly: Based in Belgium, Venly simplifies blockchain integration for developers and businesses to support industry growth and digital transformation.

Mastercard’s Start Path program will offer selected blockchain, digital assets, and Web3 startups opportunities for collaboration, customized training, and access to Mastercard’s customer base and distribution channels throughout the virtual four-month program.

Since its inception in 2014, Mastercard (MA) has supported over 400 startups from 54 countries through the Start Path program.

Axel Cateland, the founder of Kulipa, expressed enthusiasm about the program, stating, “Through Mastercard Start Path, we’re looking to uncover new ways to unlock crypto mass adoption and wider financial inclusion with convenient, global stablecoin payments.”

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Circle (CIRC) recently submitted court documents to transfer its legal domicile to the United States from Ireland, as reported by a spokesperson for the company.

Circle (CIRC) initiated the relocation of its legal headquarters to the United States from Ireland. The company, which is the issuer of the second-largest stablecoin, announced its intention to go public in the United States back in January.

According to Bloomberg’s report on Wednesday, Circle (CIRC), the issuer of the USDC stablecoin, aims to establish the United States as its new legal base in anticipation of an upcoming initial public offering in the country. The spokesperson, mentioned in the report, refrained from providing detailed explanations for the move.

Circle (CIRC), which formally applied for a public listing with the U.S. Securities and Exchange Commission (SEC) earlier this year, is currently headquartered in the Republic of Ireland.

With a market capitalization of approximately $33 billion, Circle’s (CIRC) USDC holds the position of the second-largest stablecoin in the cryptocurrency market, as per CoinMarketCap’s data. Tether’s USDT, valued at $100 billion, occupies the top spot.

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As bitcoin prices soar, crypto wallet recovery services are experiencing a sharp increase in demand from retail investors desperate to regain access to their accounts. Cryptocurrencies, stored on decentralized blockchain ledgers, can be accessed through software or hardware wallets, bypassing traditional exchanges. This method, while reducing certain risks, also presents challenges such as forgotten passwords and lost access to two-factor authentication devices, which can lock investors out of their holdings.

The recent bitcoin rally, reaching a high of $73,803.25 in March, has intensified the fear of missing out (FOMO) among investors. According to Reuters, several investors who lost access to their wallets have successfully regained entry through recovery services, driven by the higher stakes involved as bitcoin prices hover around $60,000.

Companies like ReWallet in Germany and U.S.-based Wallet Recovery Services have reported significant increases in service requests, with some fees reaching 20% of the wallet’s value, payable only upon successful recovery. The urgency for access is underscored by an estimated 20% of all bitcoins being inactive, translating to about $237 billion in potentially lost assets.

As the crypto market continues to fluctuate, wallet recovery services are becoming crucial for investors locked out of their digital fortunes, highlighting the ongoing challenges and opportunities within the cryptocurrency security sector.

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Crypto markets showed minimal changes in the last 24 hours, with major cryptocurrencies like Bitcoin and Ether experiencing slight fluctuations, according to CoinGecko data. Bitcoin rose by just over 1%, while Ether dropped by 0.5%. Meanwhile, BNB from BNB Chain and Sol from Solana recorded a 3% decrease.

The crypto landscape saw significant activity among meme coins, which surged following a continued rally in GameStop’s (NYSE:GME) shares earlier in the week. Dog-themed Floki led the gains among major tokens, climbing 12%, while Pepe  reached a new all-time high with a 5% increase.

The meme coin rally was partly fueled by a social media post from Keith Gill, a notable retail trader who previously influenced a major short squeeze on GameStop’s stock in 2021. His recent post led to a surge in meme stocks and tokens, drawing on his @TheRoaringKitty persona.

Amid this, a joke GameStop token on the Solana blockchain reached a $100 million market capitalization, marking a 700% increase in just a week.

Despite these gains among meme tokens, the broader crypto market appears weak, with no significant support from the bullish trends in equities or the weakening dollar, as noted by Alex Kuptsikevich, a senior market analyst at FxPro.

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Coinbase, a prominent cryptocurrency exchange, is currently grappling with a system-wide outage, prompting concerns among users. The exchange has swiftly responded to the situation, assuring customers that their funds remain secure while its team diligently works on resolving the issue.

In a recent announcement, Coinbase acknowledged the outage and disclosed that its team is actively investigating the underlying cause. Despite the disruption, the exchange emphasized that users’ funds are safe, aiming to alleviate any potential concerns regarding the security of their assets.

As of now, accessing Coinbase’s website results in a “503 Service Temporarily Unavailable” alert, indicating the extent of the technical difficulties being faced by the platform.

This isn’t the first instance of technical challenges for Coinbase. In March, the exchange encountered similar issues, including disruptions to its trading platform during periods of heightened activity. Some users even reported inaccuracies in their account balances, further underscoring the importance of swift and transparent communication from the exchange during such incidents.

While system-wide outages can be disruptive, Coinbase’s proactive response and assurance regarding the safety of users’ funds reflect its commitment to maintaining trust and transparency within the cryptocurrency community. As the exchange works to resolve the current issue, users can expect updates from Coinbase regarding the restoration of services and any further developments.

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