Gate.io Blog Daily News | BTC High Horizontal, Meme and AI Are Strong; US House of Representatives Approved the Crypto Market Structure Act; "Centralization Concerns" Led to a 30% Decline in ADA

Daily News | BTC High Horizontal, Meme and AI Are Strong; US House of Representatives Approved the Crypto Market Structure Act; "Centralization Concerns" Led to a 30% Decline in ADA

23 May 11:18

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## Crypto Daily Digest: The US House of Representatives approved the Crypto Market Structure Act; Taiko announced the launch of the TKO airdrop qualification query page; Cardano's "centralization concerns" led to a 30% drop in ADA prices
First, let's take a look at the trading activities of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs. According to Farside Investor data, on May 22nd, Grayscale Bitcoin spot ETFs (GBTC) had a cash outflow of $16.1 million; Meanwhile, Fidelity Bitcoin spot ETF (FBTC) inflow of $74.6 million, ARK 21Shares Bitcoin spot ETF (ARKB) inflow of $3.5 million.

**The US House of Representatives approved the Crypto Market Structure Act**
On Wednesday, the US House of Representatives passed the Republican-led 21st Century Financial Innovation and Technology Act (also known as FIT21) with 279 votes to 136. The passage of this bill marks the first vote on comprehensive crypto legislation in the House of Representatives, with 71 Democrats voting in support of the bill, including former California House Speaker Nancy Pelosi.

FIT21 aims to regulate the entire crypto industry, and empower the Commodity Futures Trading Committee with more power and funding to oversee the crypto spot market and "digital commodities," particularly Bitcoin. The bill also creates a process allowing secondary market trading of digital goods initially offered as part of investment contracts. In addition, the bill also includes stablecoin and anti-money laundering provisions. Although FIT21 is unlikely to be introduced in the Senate this year, the bill may lay the foundation for the next Congress in January next year.

Ron Hammond, Director of Government Relations at the Blockchain Association, said that Congress's views on cryptocurrencies are changing. He believes FIT21 is a "huge turning point". He states, "The connection between crypto voters and the upcoming elections is undeniable, and the Biden administration seems to have finally begun to realize the potential consequences of maintaining the status quo."

Before the FIT21 vote, the Senate and House of Representatives passed a measure to repeal the Securities and Exchange Commission's employee accounting statement, which established certain accounting standards for companies hosting cryptocurrencies. The resolution has received support from some Democrats, including Senate Majority Leader and New York State Democrat Chuck Schumer. However, the White House stated that President Joe Biden would veto the bill. On Wednesday, the White House opposed FIT21 but "eager to work with Congress" to develop a digital asset regulatory framework.

**Taiko announced the launch of the TKO airdrop qualification query page**
Taiko, an <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> L2 network based on zkRollup, officially announced the launch of the first phase of the TKO airdrop on the X platform early this morning and launched the airdrop qualification query page. In the first stage, 5% of the initial token supply will be provided, and users will have seven days to check their qualifications. After the check is completed, the collection window will open, and eligible users will have one month to collect TKO.

The TKO airdrop application has not been launched yet. Please refer to the official release information for participation in the application and be careful of any related scams. According to the TKO token economics model, its total supply is 1 billion coins. The specific allocation includes:

DAO Teary accounts for 20%; Trailblazer airdrops account for 10%; The highest proportion of Genesis airdrops is 5%; Liquidity and market makers account for 5%; Investors account for 11.62%; Taiko Labs/core team accounts for 20%; Taiko Foundation reserves account for 16.88%; Taiko's official Prover Bonds account for 1.5%, and so on.

**<a href="/price/cardano-ada" target="_blank" class="blog_inner_link">Cardano</a>'s "centralization concerns" triggered a 30% drop in ADA prices**
The price of ADA has plummeted after analysts questioned the centralization of the Cardano network. Crypto analyst Justin Bons stated that Caldano's parent company Input Output Global (IOG) controls 5 out of 7 "Genesis keys" on the blockchain, which were used as early as 2015 to sign and establish the initial blocks of the Caldano blockchain.

The analyst pointed out that "Genesis Key allows for seamless code changes without hard forks." He added, "This means that IOG can stop the chain, change emission schedules, conduct reviews, and so on, which is an unprecedented level of centralized control over the L1 chain."

As of May 22, the price of ADA began to decline after testing the upward trend line of the triangle. At present, the price will continue to fall to the downward trend line of around $0.44, a 6.5% decrease from the current price level. However, during this period of price adjustment, the supply of ADA held in the address of the giant whale  slightly increased, indicating he did not pay attention to Boggs' warning about Caldano's so-called centralization.

## Market Trends: Short-term profit taking in the market, but long-term positive trend remains unchanged
BTC: Bitcoin is trading sideways at a high level, temporarily falling below $70,000, possibly due to short-term profit taking in the market. Nevertheless, the long-term trend of Bitcoin remains bullish, especially in the context of increasing global economic uncertainty.

ETH spot ETF: Bloomberg analysts predict that its size may only reach 10% of BTC spot ETF. This prediction reflects weak market confidence in Ethereum, but it may also be a conservative estimate. Once ETH spot ETFs are approved, market demand may significantly increase.
### Macro Economy:
US stock market correction: The Federal Reserve's minutes suggest that interest rates will not be cut soon, which is a disadvantageous factor for the stock market. However, technology leader Nvidia's performance exceeded expectations and reached historic highs, indicating that technology stocks may continue to be a bright spot in the market.

Crypto market: A pullback in the US stock market may put short-term pressure on the crypto market, but in the long run, funds may <a href="/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a> into high-risk assets such as cryptocurrencies in search of higher returns.
### Market Hotspots:
**Meme concept coins:**
PEOPLE, MAGA, WIF, BOME, MANEKI: PEOPLE and MAGA have shown strong performance driven by the concept of the US election. The Meme on <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a>'s face also performed well, especially MANEKI, rebounding more than 30% from a lower point. With both US presidential candidates being friendly to Meme, these Meme coins may continue to receive market attention.

Investment strategy: In the short term, attention can be paid to the volatility of these currencies, which is suitable for investors with high-risk preferences. In the long run, it is necessary to be alert to changes in market sentiment.

**Other hot coins:**
EDU: Animoca Brands, the major shareholder, plans to repurchase, directly benefiting the currency price. It may continue to rise in the short term.

BNX: As a star project of the GameFi concept, the increase in this round is close to 10 times. It should be noted that such a high increase may trigger profit taking.

HOOK: It is recommended to pay attention to its subsequent development and changes in market sentiment.

**Layer2 network Taiko：**
Announced the airdrop of 5% tokens, primarily for Taiko users and the LRC community. Airdrop news usually brings short-term market heat, but it is necessary to pay attention to the market reaction after the airdrop.

**AI concept coins:**
LPT rose sharply, but other AI concept currencies did not gain significantly. This may be due to the strong market response to specific positive news about LPT. Suggest paying attention to the overall development trend of AI concepts and evaluating whether there are other growth opportunities.

The current market is full of opportunities but also comes with risks. Investors should make flexible adjustments based on their risk tolerance and market dynamics. For high-risk investors, it is recommended to focus on Meme coins and GameFi concept coins, while for conservative investors, it is recommended to keep an eye on long-term investment opportunities in BTC and ETH.

## Macro: Federal Reserve meeting minutes released, overall stock market decline; Technology companies represented by NVIDIA still perform well
On May 22nd, Reuters reported that the US stock market closed lower on Wednesday as investors digested the minutes of the Federal Reserve's latest meeting. Semiconductor leader NVIDIA's revenue stood out and exceeded expectations, with the company's stock price rising by about 6% after the close. This news has also driven up the stock prices of other chip manufacturers.

After soaring nearly 240% in 2023, Nvidia's stock price has risen by about 90% this year. Investors are paying attention to whether Nvidia's first quarter performance can meet extremely high expectations, and whether the significant rise in artificial intelligence related stocks can be sustained.

Index decline: The Dow Jones index fell 0.51%, the Standard & Poor's index fell 0.27%, and the Nasdaq index fell 0.18%.

According to analysts surveyed by Reuters, the closing price of the S&P 500 index this year may be close to its current level of 5302 points, but warning that the index's strong performance means there may be adjustments in the future. Part of why the stock market rose to a historic high this month is due to the optimistic sentiment of artificial intelligence, a robust financial reporting season, and the renewed hope of the Federal Reserve cutting interest rates this year.

According to CME's FedWatch tool, the market expects a 59% chance that the Federal Reserve will cut interest rates by at least 25 basis points at its September meeting, lower than the 65.7% seen in the previous trading day.

In the Asian market, on May 23, several major stock market benchmark indices in Asia closed lower on Thursday as the market digested the impact of policy-makers in major economies tending to adopt patient monetary easing policies amidst sustained high inflation.

The latest policy meeting minutes of the Federal Reserve have been more hawkish than expected, with the UK inflation report receiving much attention. The Bank of New Zealand has remained calm on inflation issues in New Zealand, leading investors to reduce their bets on the speed and scale of global interest rate cuts.

The MSCI Asia Pacific Stock Index fell 0.57%. The Australian S&P/ASX 200 was affected by the decline in some commodity prices, becoming one of the stocks with the largest drop, falling 0.8%. After hitting a high of over nine months earlier this week, the Hang Seng Index in Hong Kong experienced profit-taking and fell 1.5%. The Chinese blue chip index has decreased by 0.3%.

The Japanese Nikkei Index hit its lowest level in over three weeks, with the yen rising 0.6%. The latest exchange rate between the Japanese yen and the US dollar is 156.85.

Regarding commodities, oil prices have fallen, with Brent crude oil dropping 0.82% to $81.23 per barrel and US crude oil falling slightly by 0.9% to $76.87 per barrel.

Gold prices fell 0.25% to $2,372.28 per ounce, far from the historical high of $2,449.89 hit on Monday, as the prospect of long-term interest rate hikes in the United States has tarnished some of the gold's luster.

<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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GT/USDT -6.10%

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