First Mover: Bitcoin Bounces Back to $55K as Yellen Backtracks on Rate Hike Comments
  Everything you need to make sense of the crypto markets and beyond By the CoinDesk Markets Team Edited by Lawrence Lewitinn, Managing Editor, Global Capital Markets May 5, 2021 Sponsored by  (Price data as of May 5 @11:00 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.
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Market Moves by Omkar Godbole  Bitcoin Bounces Back to $55K as Yellen Backtracks on Rate Hike Comments Bitcoin (BTC) has regained poise on Wednesday after U.S. Treasury Secretary Janet Yellen toned down comments suggesting interest rate hikes may be needed to stop the economy from overheating.
"It's not something I'm predicting or recommending," Yellen clarified during an online event hosted by The Wall Street Journal late on Tuesday, downplaying remarks made earlier in the day.
"If anyone appreciates the independence of the Federal Reserve, I think that person is me," Yellen added, according to a Bloomberg report Wednesday.
Bitcoin found a floor near $53,000 after Yellen's clarification and was trading back above $55,400 at press time, representing a nearly 4% gain on the day.  Bitcoin daily chart (Source: TradingView) Yellen had originally been discussing the scope for rate hikes in the context of U.S. President Joe Biden's plans for $4 trillion of infrastructure and welfare spending over the next decade.
Looking ahead
While the Fed recently reiterated its commitment to keep the liquidity tap open for a prolonged period, some experts fear the U.S. central bank would ditch its pro-easing bias and turn hawkish later this year.
The U.S. dollar is starting to show signs of life amid a growing debate over whether Biden's massive spending, coupled with a vaccine-led economic recovery, would force the Fed to scale back stimulus earlier than expected.
The Dollar Index, which tracks the greenback's value against major currencies, rose to a 2.5-week high of 91.44 earlier today, extending its recovery from the two-month low of 90.42 reached on April 29, according to data and chart provider TradingView.
A continued rally in the U.S. dollar could yield deeper losses for bitcoin. The two assets have moved mainly in the opposite direction since March 2020, courtesy of the Fed's stimulus measures.
The dollar's recovery rally will likely pick up the pace if the U.S. nonfarm payrolls data, scheduled for release on Friday, blows past expectations, pointing to faster economic recovery.
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Technician's Take by Damanick Dantes Bitcoin Reclaims Support; Approaching Resistance Near $56K-$58K Bitcoin (BTC) is holding support around $55,400 at the time of writing as buyers attempt to erase Tuesday's losses. Resistance is seen around $56,000 and $58,000 where traders have taken profit over the past few months.  Hourly bitcoin chart shows support and resistance levels with RSI (Source: TradingView)
Original story found here: Bitcoin Reclaims Support; Approaching Resistance Near $56K-$58K
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 A message from CoinDesk Unlocked 101 at Consensus by CoinDesk 2021
The countdown is on to Consensus by CoinDesk, our virtual big-tent event this May.
For those who need a primer or to brush up on the fundamentals, we're hosting Unlocked 101, a free educational series designed to give you the tools you need to navigate crypto.
Sessions run May 4–20, covering the basics of Bitcoin, DeFi, scams and hacks and the NFT boom.
ICYMI In case you missed it, here's the most recent episode of "First Mover" on CoinDesk TV: Ether Markets Focus: Why Is the Price Soaring? Ether sets new records, breaking through $3400 and "flipping" bitcoin on options volume. "First Mover" dives into crypto markets analysis with MarketGauge Managing Director Michele Schneider. Also, Nikhilesh De on Coinbase's decision to expand support for the stablecoin tether. And, why did the Decentralized Finance Oracle Umbrella Network migrate from Ethereum to the Binance Smart Chain? We hear from the network's founder, Sam Kim.
 Introducing CoinDesk Indexes TradeBlock, the leader in providing crypto asset indexes to financial institutions, will now assume the CoinDesk name. Introducing CoinDesk Indexes: the industry standard for institutional-grade digital currency price references with billions of dollars in monthly trading volume quoted against them. Underlying new brand names, TradeBlock's index methodology will continue to adhere to the standards of integrity and reliability that have always differentiated its indexes. Read more about CoinDesk Indexes, the industry standard in crypto benchmarks.
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 CoinDesk Research: Does Bitcoin Have an Energy Problem? Is Bitcoin bad for the environment? This CoinDesk Research report looks at the data behind the most common critiques and shows that, while Bitcoin uses a lot of energy, the mix is evolving toward renewables. Bitcoin also incentivizes investment in clean energy sources, can convert pollution into value, and redistributes wasted power production.
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