Daily News | Bitcoin's Bull Run, Ethereum's Staking Shake-up, and Regulator Concerns; TradFi Flat as Fed Advocates Rate Hikes
Crypto Daily Digest: Bitcoin Signals Major Bull Market, Ethereum Shifts Staking Share, SEC Defends Tough Stance, BoE Suggests Limits on Stablecoins
On Bitcoin, the reserve-risk multiple, an indicator of Bitcoin‘s price, has turned positive for the first time since October 2021, signaling the beginning of a major bull market. Compared to long-term holders who resist liquidating their holdings, the reserve-risk multiple compares the incentive to sell at the current market price, and has previously predicted major bullish and bearish trends, with previous crossovers above zero paving the way for sharp price rallies. This means that Bitcoin‘s recent 80% year-to-date rally to 10-month highs above $30,000 may just be the first milestone in its upward journey.
On Ethereum, following its recent Shapella upgrade, there has been a shift in the market share among crypto staking service providers, benefitting decentralized finance (DeFi) applications, with Lido, Rocket Pool, and Frax Ether seeing a surge in investments. However, concerns have been raised about Lido’s status as the largest holder of staked Ether, which could lead some stakers to switch to alternative liquid-staking services. Initially, there were more withdrawals of staked Ether than new deposits, but the situation has since moderated.
Meanwhile, defending the regulator’s tough stance on crypto markets, SEC Chair Gary Gensler stated that many crypto tokens are unregistered securities and the industry has developed around non-compliance. Gensler also warned that the US capital markets could face significant challenges if Congress doesn’t extend the debt ceiling. Ahead of his hearing with the GOP-controlled House Financial Services Committee, Republicans on the panel criticized the SEC’s digital-asset regulation and Gensler’s calls for crypto trading platforms to register with the agency.
Elsewhere, balancing the need for innovation with concerns over financial stability, Bank of England Deputy Governor Jon Cunliffe suggested that regulators could impose limits on Stablecoins used for payments. Although Stablecoins offer greater efficiency and functionality in payments, they currently do not fit into any regulatory framework. Cunliffe stated that regulators need to decide whether there should be limits on Stablecoins used for payments and that Stablecoins would need to be backed by high-quality and liquid assets to ensure they could be redeemed for fiat money on demand.
Ether (ETH) $2102 (+0.02%) - Neutral Outlook
Overview:
- Closest hourly support zone: 2099 - 2081
- Closest hourly resistance zone: 2106 - 2120
- Key Level: 2075 (Weekly Close of Mar. 29 - Apr. 05, 2021)
Hourly Resistance zones
- 2106 - 2120
- 2128 - 2151
- 2167 - 2205
Hourly Support zones
- 2099 - 2081
- 2072 - 2059
- 2051 - 2041
Macro: Gold Halts Losing Streak, Asian Equities Subdued as Fed Advocates Rate Hikes
On Tuesday, stock markets were largely unchanged as traders assessed earnings reports from US banks and statements from Federal Reserve officials advocating rate hikes to fight inflation. The S&P 500 index inched up 0.1%, and the Cboe Volatility Index reached its lowest point since January 2022. Tesla’s Q1 results were awaited, while Netflix’s share price declined in late trading after its subscriber growth and revenue outlook fell short of expectations. Two-year US yields slightly increased, but oil and gold remained mostly flat, with gold ending a two-day losing streak.
Meanwhile, in Asian equities, investors evaluated earnings reports and statements from Federal Reserve officials in favor of continuing rate hikes. Futures for Hong Kong’s benchmark dropped 0.3%, and US futures dipped at the beginning of Asian trading. Two-year US yields held steady at 4.20%, while the rate on ten-year bonds declined slightly to 3.58%. Goldman Sachs fell, but Bank of America’s shares rose following better-than-expected earnings, while Western Alliance Bancorp also enjoyed a surge in its share price after beating earnings estimates.
