First Mover: Bitcoin Outflow From Exchanges Suggests Confidence Crypto Rout Is Over

PLUS: Bitcoin Consolidates Around Short-Term Support; Faces Resistance Near $42K

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 27, 2021 Sponsored by     Bitcoin (BTC) -0.4%  $39,418 Ether (ETH)  -0.3%   $2,795 (Price data as of May 27 @11:11 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.  Good morning. Here's what we're writing about: Market Moves: Bitcoin Outflow From Exchanges Suggests Confidence Crypto Rout Is Over   Technician's Take: Bitcoin Consolidates Around Short-Term Support; Faces Resistance Near $42K   Check out the CoinDesk TV show "First Mover," hosted by Christine Lee and Lawrence Lewitinn at 7:30 a.m. U.S. Eastern time. Today the show will feature guests: Sandeep Nailwal, Polygon Co-Founder & Chief Operations Officer  Marc Chandler, Bannockburn Global Forex Chief Market Strategist Mariana Gomez de la Villa, ING Program Director for Distributed Ledger Technology Then be sure to catch a special edition of First Mover at 11:00 a.m. ET, when Emily Parker will also host, and featuring guests: Tom Robinson, Elliptic Co-Founder & Chief Scientist Josh Swihart, ZCash SVP of Growth Dan Held, Kraken Head of Growth   Stephen Pair, BitPay CEO Boomboxhead Kris Marszalek, Crypto.com CEO   Biggest Movers These are the biggest movers in the CoinDesk 20 over the past 24 hours:   Gainers: NuCypher (NU): +12.2% Chainlink (LINK): +10.3% EOS (EOS): +9.9% Losers:  Stellar (XLM): -2.8% The Graph (GRT): -2.6% Yearn Finance (YFI): -2.0%   The CoinDesk 20 are 20 digital assets filtered from the larger universe of thousands of cryptocurrencies and constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges. Market Moves by Omkar Godbole Bitcoin Outflow From Exchanges Suggests Confidence Crypto Rout Is Over With blockchain data showing that bearish market sentiment is weakening, oversold bitcoin (BTC) may succeed in establishing a base below $40,000. The seven-day average of net bitcoin inflows to exchanges turned negative for the first time since April 22, data provided by Glassnode show. That means coins are leaving exchanges after a gap of four weeks, a sign of investors are starting to take direct custody of their holdings, possibly anticipating a price increase. The fewer coins available for sale on exchanges, the better the chance of the market going up. Investors typically transfer coins to exchanges when they want to sell their holdings, so consistent net inflows represent a bearish mood, with outflows signalling bullish sentiment. Bitcoin exchange flows (Source: Glassnode) The seven-day average of net flows turned positive on April 22, and rose to a 14-month high of 10,628 BTC on May 17, a sign some holders may have been panicking. The bitcoin sell-off gathered pace, with prices dropping to lows near $30,000 on May 17. The decline marked a slump of more than 50% from the record-high $64,801 reached on April 1. The panic looks to have subsided this week, with the balance held on exchanges dropping by 7,597 BTC to 2.53 million. Further outflows from exchanges may be needed to restore battered market confidence and put the cryptocurrency back on a bullish path. Consistent outflows accompanied bitcoin's 13-month surge from $5,000 to over $60,000, with the balance held in exchange wallets falling by more than 615,000 BTC from March 2020 to April 2021.   Read the original story here: Bitcoin Outflow From Exchanges Suggests Confidence Crypto Rout Is Over A message from Nexo Your digital assets deserve a savings account in their BEST INTEREST. Leading crypto lender Nexo treats you, your crypto and your fiat to industry-best Crypto & Fiat services, featuring:    * Up to 12% interest on digital assets, paid out daily! * Yields available on BTC, ETH, LTC, BCH, XRP, XLM, EOS, TRX, LINK, BNB, PAXG, USDT, USDC, TUSD, PAX, DAI, HUSD, GBP and EUR. * No minimum or maximum limits on funds deposited, offering infinite opportunities to earn. * #ZeroFees on all transactions. * Military-grade wallet security and top-tier insurance on all custodial assets with SOC 2 Type 2 certified crypto custodian BitGo. Get started at nexo.io Technician's Take by Damanick Dantes Bitcoin Consolidates Around Short-Term Support; Faces Resistance Near $42K Bitcoin (BTC) has traded sideways over the past week as the correction phase stabilizes.  The cryptocurrency held short-term support at $36,000 and was trading around $39,000 at the time of writing. Resistance is seen at the upper bound of the week-long range around $42,000. Hourly bitcoin chart shows short-term support and resistance levels (Source: TradingView) Bitcoin is holding above the 100-period moving average on the hourly chart which suggests the short-term trend is improving. Immediate resistance is seen at $40,000 where buyers failed to sustain upside over the past few days. $42,000 is the next level of resistance which is around the 200-day moving average. Bitcoin is down about 3% over the past seven days as the price recovery from $30,000 stalls. Volatility has drifted lower since March 23, which is typical during price consolidation. Considering the sharp correction this month, lower volatility could encourage buyers to return at support levels.     A message from ErisX ErisX's customers trade crypto without sacrificing security, transparency or the benefit of market oversight. Choose from our Trading UI, Websocket API, or our Algo Machine ™ to automate your trading strategies without having to write code. Algo features include "pegged order" and "order-on-fill". Reduce your trading costs with industry-low trading fees and instant rebates for passive order flow. Sign up for our weekly newsletter. Less Fees. More Bitcoin. BOLO Be on the look out for some of these upcoming events at Consensus 2021. More events can be found here. 12:00 UTC (8:00 a.m. ET) A Conversation with FinCEN Acting Director Michael Mosier The fact that a crypto veteran now heads up FinCEN - the US agency tasked with fighting financial crime - is as good an indicator as any that the industry is rapidly maturing. Mosier, a former Chainalysis executive, joins Jill Carlson in his first public appearance before the crypto industry since taking over the agency in April.   12:55 UTC (8:55 a.m. ET) A View from the Inside: Crypto's Future Under the Biden Administration Carole House, Director of Cybersecurity and Secure Digital Innovation at the National Security Council, and Amanda Wick, Chief of Legal Affairs at Chainalysis and former DOJ prosecutor, will discuss cutting-edge legal issues in crypto including the role of the new U.S. Presidential administration and new global regulations that are affecting policy around the world. Their discussion will explore legislative and policy debates around hot topics such as the Travel Rule, stablecoins, unhosted wallets, and other critical issues.   23:00 UTC (7:00 p.m. ET) Unleashed: What the Binance Mafia Means for Crypto Tech is well-acquainted with the "mafia" concept - whereby nouveau riche early stakeholders of PayPal, for example, go on to seed other projects and ideas. However, crypto platforms like Binance are not just making their employees and investors rich, but rather creating new networks of opportunity for customers to create wealth for themselves. Binance CEO CZ joins to discuss the emergence of this new "Binance Mafia" and what it means for venture investing. 00:00 UTC (8:00 p.m. ET) 1:1 with Tom Brady & Sam Bankman-Fried Tom Brady, the greatest quarterback of all time and seven-time Super Bowl champion, talks crypto with FTX's Sam Bankman-Fried. Cancel your dinner reservations to watch this as this will likely be something you will tell your grandchildren about.  A message from CoinDesk This Week at #Consensus2021   From Brian Brooks' bold reforms within the Office of the Comptroller of the Currency to Revolut and CashApp becoming crypto onramps for the masses, the last 12 months have witnessed remarkable advances in the crypto industry's bankability.   This week at Consensus by CoinDesk, our virtual big-tent conference, we examine how crypto has gone from persona-non grata to the shiny new thing.   Join our Explorations track "Crypto Neo-Banking ," sponsored by Circle, with JPMorgan's Onyx CEO Umar Farooq, Caitlin Long, Brian Brooks of Binance.us and more at Consensus by CoinDesk, running to May 27. Register today. ICYMI In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:   Tom Brady's Consensus Surprise; Brian Brooks, Filecoin, DNA NFTs Brian Brooks, the former Acting Comptroller of the Currency and now CEO of Binance U.S., joins "First Mover" to discuss regulator comments and concerns, his reaction to market moves, and Binance U.S. plans. Also, Tom Brady will join the Consensus by CoinDesk conference underway this week. "First Mover" will have that back story. Plus, Anne Fauvre-Willis of Oasis Labs and Kamal Obbad of Nebula Genomics say they're turning its DNA into NFTs.   Economist and Diem Co-Creator Catalini on The Future of Money; Crypto in Space As Consensus by CoinDesk 2021 continues with another day full of educational sessions, "First Mover" does its own deep dive into the future of money Wednesday, bringing the topic down to earth and discussing crypto's voyage to space. Joining our discussions today: Diem Co-Creator and Diem Foundation's chief economist Christian Catalini and CEO of SpaceChain Zee Zheng. Plus, markets analysis with Satstreet's Michael Nasser and highlights from yesterday's Consensus keynotes, including MicroStrategy's Michael Saylor and the Federal Reserve's Dr. Lael Brainard. Latest Headlines Consensus Day 3, Recapped: The Battle Over Electronic Money The future of CBDCs, stablecoins and untethered cryptocurrencies was all up for grabs on an action-packed day at CoinDesk's flagship event.   US Lawmakers Introduce Bill to Require Digital Dollar Updates A bipartisan bill would require the U.S. treasury secretary to publish a report on the dollar's role in the global economy, as well as how central bank digital currency efforts are proceeding.   Consensus 2021: 7 Questions for Bitcoin Anarchist Eric Voskuil We asked a bitcoin developer about the patronage model, on-chain privacy, lessons from Taproot and Bitcoin's energy consumption. DeFi 'Raises Challenges' for Investors, Regulators, SEC's Gensler Says The regulator has suggested that a dedicated market regulator would offer some protection against fraud and manipulation. Binance Says 'Rollback' Not Possible After DeFi Exploits on Binance Smart Chain Binance is not responsible for "rug pulls" on Binance Smart Chain, an exchange representative says.   Billionaire Carl Icahn Eyes Potential $1.5B Crypto Investment The activist investor said he believed cryptocurrency would endure but not necessarily all the current digital.   Bank of Korea Sees Threat to Financial System in Leveraged Crypto Trading The central bank governor has pledged to monitor transactions of Korea's financial institutions associated with leveraged crypto trading.     Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. 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