Daily News | Altcoins Fall, Market Fluctuated; Ripple CEO Stated that "the US Government is Pursuing Tether"; Famous Traders Returning to Drive PEPE to a New High

2024-05-14, 03:33

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## Crypto Daily Digest: Ripple CEO stated that "the US government is pursuing Tether"; Famous trader returns, driving PEPE to a new high
First, let's examine the trading activity of <a href="/id/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs. According to Farside Investor data, on May 13, among the major Bitcoin spot ETFs, the Fidelity Bitcoin spot ETF (FBTC) inflow was $38.6 million, and the Bitwise Bitcoin spot ETF (BITB) inflow was $20.3 million.

On Friday, May 10, Wells Fargo, the third largest bank in the United States, disclosed its exposure to Bitcoin ETFs in a document submitted to the Securities and Exchange Commission. Wells Fargo Bank holds ProShares Bitcoin Strategy ETF, Grayscale Bitcoin Trust, and Bitcoin Depot stocks with a total value of $143,111.

Afterwards, the largest bank in the United States, JPMorgan Chase, also announced its shareholding situation. Surprisingly, despite JPMorgan Chase CEO Jamie Dimon's repeated public condemnation of cryptocurrencies, the bank still holds approximately $1.2 million in ETF stocks. This attracted widespread attention and discussion in the crypto community.

Ripple CEO Brad Garlinghouse stated that the US government is clearly "pursuing" stablecoin issuer <a href="/id/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a>, which could have unpredictable impacts on the crypto market. In the World Class program on May 10, he believed that the crypto market is 100% likely to see another Black Swan event similar to the FTX bankruptcy and subsequent fraud exposure.

"I think Tether is a very important part of the ecosystem," Galinghouse said. He added that he cannot predict the specific impact of potential regulatory actions by the United States on Tether on the crypto ecosystem. By the way, these comments were made at a time when Ripple was planning to launch its own stablecoin in 2024.

Tether Holdings is a parent company with multiple subsidiaries established globally, responsible for issuing and managing stablecoins. According to market cap, Tether (USDT) is the world's largest stablecoin. The previous regulatory authorities' special attention to Tether is traceable.

In October 2023, US Senator Cynthia Lummis and Representative French Hill urged the Department of Justice to carefully evaluate the extent to which Binance and Tether provided material support and resources to support terrorism in a letter. Tether responded to this letter, stating that it has been assisting law enforcement agencies at the time of inquiry and is fully committed to continuing to cooperate with global authorities.

In November 2022, Bloomberg reported that US prosecutor Damian Williams in New York took over an earlier investigation by the Department of Justice into Tether's alleged concealment of crypto related funds from banks used for cash transfers.

In addition, Tether was criticized for its lack of transparency in supporting USDT's reserves and released quarterly third-party audit reports in recent years. In October 2021, regulatory authorities reported that Tether had distorted its reserve holdings to clients, resulting in Tether paying a fine of $41 million to the Commodity Futures Trading Commission.

After the famous GameStop stock trader Keith Gill returned to social media platform X under the name "Roaring Kitty," PEPE reached a historic high. PEPE surged 34% in the past 24 hours, reaching a record high of $0.00001119, and its market value jumped to $4.31 billion, becoming the 23rd largest cryptocurrency by market value.

Keith Gill's social media account has been dormant since June 2021. He was at the center of the 2021 meme frenzy, when stock prices of companies such as GameStop and AMC Entertainment soared by over 1,000% in a short period of time.

On May 12, the “Roaring Kitty” account posted a photo of a man holding a controller and sitting in a chair, indicating a high level of attention to PEPE. This trend sparked great interest and enthusiasm in the market for PEPE.

On May 13, PEPE's rebound momentum was strong, with prices rebounding from the upward trend line since mid April, breaking through key resistance levels and further driving its market performance. This trend demonstrates the strong growth potential of PEPE in the market.

## Market Trends: Altcoins generally fell, and the overall market was still in a volatile range
BTC rebounded to around $63,000 but Altcoins generally fell, and the overall market remains volatile. On the macroeconomic front, the US stock market was volatile. The former leader of the US retail investor movement, GME, surged several times.
### Market Hotspots:
The prices of PEPE, FLOKI, MAGA, MOG, POPCAT, and MANKEI in the Meme concept rose. PEPE broke through $0.00001, reaching a historic high. After the sharp rise of GME in 2021, it drove Meme coins such as DOGE and FLOKI to rise dozens of times. The funds for purchasing GME highly overlap with the funds for purchasing Meme coins.

The new Bouncebit token BB on Gate.io hit a high of $0.9 at opening, but has now fallen back to around $0.45. Bouncebit is a BTC re-staking protocol developed by the Auction team. After halving BTC, BTC ecosystem tokens generally performed poorly, with Merlin, Runstone, and others hitting new lows.

This week, a large number of tokens will be unlocked, with IMX unlocking nearly $60 million, STRK unlocking nearly $80 million, and ARB unlocking over $90 million. Before and after unlocking the huge amount of tokens, the market may experience significant fluctuations.

The crypto market is currently in a stage of volatile adjustment, and investors should remain cautious, especially when dealing with highly volatile assets. Investors are advised to closely monitor market trends, especially the performance of Meme coins. Meanwhile, users should strengthen risk management, adjust investment strategies in a timely manner, and make corresponding decisions based on market changes.

## Macro: Investors await key data release, global market performance remains stable
On Wall Street, May 13, the S&P 500 index closed slightly lower, ending three consecutive weeks of gains. Investors are taking a break before the release of key inflation data and earnings reports for this week. The S&P 500 index fell 0.04%, the Dow Jones Industrial Average fell 0.15%, and the Nasdaq Composite Index rose 0.27%.

According to a survey by the Federal Reserve Bank of New York, Americans expect the inflation rate to rise from 3% in March to 3.3% in the next year, while they expect the inflation rate to be 2.8% in three years. Last week, the Nasdaq Composite Index and the S&P 500 Index rose for the third consecutive week, benefiting from strong earnings reports and signs of a cooling labor market, which raised expectations for the Federal Reserve to cut interest rates once or twice this year.

However, investors appeared cautious on Monday as they waited for the April Consumer Price Index (CPI) data to be released on Wednesday. At the same time, they will also pay attention to the Producer Price Index, retail sales data, weekly unemployment claims, and revenue reports for large retailers.

Among the 11 major industry sectors in the S&P 500 index, only two sectors rose on Monday. Apple (AAPL.O) was the largest index contributor of the day, with its stock price rising 1.8% due to reports of an agreement with OpenAI to use ChatGPT technology on the iPhone. In addition, OpenAI announced the release of a new artificial intelligence model that can engage in realistic voice conversations and interact across text and images.

On May 14, Asian stock markets hovered near a 15-month high on Tuesday, with the US dollar strengthening ahead of the highly anticipated release of US inflation data, while Japanese bonds were squeezed by the central bank's slight withdrawal of bond purchase plans.

In early trading, Hong Kong stocks rose slightly and reached their highest level since early 2023, marking the fourth consecutive week of strong gains. The Hang Seng Index in Hong Kong has risen by 30% from its January low and surged nearly 20% within a month. Recent news and data include the rise of consumer prices for the third consecutive month, better than expected import data, record low credit growth and the issuance of trillion yuan of special treasury bond, all of which are regarded as positive demand signals and growth support measures.

The Nikkei Index remained unchanged in Japan. The yield of Japan's benchmark 10-year treasury bond rose 1 basis point to 0.95%, the highest yield since November, and the yield of five-year treasury bond hit 0.555%, the highest level since 2011.

In the money market, the investigation of tension and inflation expectations prevented the decline of the US dollar. The US dollar hit its highest level against the Japanese yen since the beginning of this month, when traders believed that the Japanese authorities were intervening to buy the yen.

The main focus of this week is the release of the US Real Consumer Price Index (CPI) data on Wednesday to understand whether some unexpected increases in the first quarter are temporary or sustained trends. It is expected that the core CPI will slow down from an annual rate of 3.8% in March to 3.6% in April.

Regarding commodities, oil and gold have also remained relatively stable, with Brent crude oil futures prices at $83.40 per barrel and spot gold prices at $2,339 per ounce.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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