The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Thursday! Here's what you need to know today in crypto: |
- The charts indicate bitcoin could soon see $24K, said Valkyrie Investments.
- Fahrenheit has won a bid to acquire insolvent lender Celsius Network.
- Do Kwon will remain in detention.
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CoinDesk Market Index (CMI): 1,163 −1.6%
Bitcoin (BTC): $26,255 −1.8%
Ether (ETC): $1,788 −1.5%
S&P 500 futures: 4,149.50 +0.6%
FTSE 100: 7,604.68 −0.3%
Treasury Yield 10 Years: 3.72% +0.0 |
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Bitcoin's (BTC) recent price slide may have legs, according to technical analysis by alternative asset management firm Valkyrie Investments. The leading cryptocurrency by market value has declined by 10% to $26,200 this month – including a slide of nearly 4% over just the past day-plus – thanks in part to renewed bets the Fed will remain hawkish, a recovery in the U.S. dollar index, and lingering U.S. debt ceiling uncertainty. Per Valkyrie, a further decline toward $24,000 may be seen as bitcoin's daily chart Ichimoku cloud – a momentum indicator – has flipped bearish. "This suggests an ongoing high-timeframe bullish trend with a decline in bullish momentum and the potential for near-term retrenchment," wrote Chief Investment Officer Steven McClurg and team in a note to clients on Tuesday. |
Crypto consortium Fahrenheit has won a bid to acquire insolvent lender Celsius Network, whose assets were previously valued at around $2 billion, according to court filings made early Thursday morning. The group will acquire Celsius' institutional loan portfolio, staked cryptocurrencies, mining unit and additional alternative investments, and must pay a deposit of $10 million within three days to cement the deal, court filings show. A consortium of buyers that includes venture capital firm Arrington Capital and miner US Bitcoin Corp, Farenheit was selected as successful bidder following a lengthy auction process. Under the terms of the deal, the newly-formed company will get between $450 and $500 million in liquid cryptocurrency, and US Bitcoin Corp will construct a range of crypto mining facilities including a new 100 megawatt plant. Terraform Labs co-founder Do Kwon will remain in detention while he faces charges of falsifying official documents in Montenegro, according to a court statement Thursday. Although the Basic Court in the country's capital Podgorica had initially accepted a bail proposal from Kwon's lawyers, Bloomberg reported that a higher court had later annulled the decision. The Basic Court of Podgorica confirmed to CoinDesk the high court's decision, and that it had received the agreed payment of 400,000 euros ($428,000) from Kwon on May 17. Following the High Court ruling, the Basic Court has decided to extend Kwon's detention. |
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Market Insight: Bitcoin's Declining Correlation With Stocks
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A declining correlation between bitcoin and equities is rejuvenating the case for investors to include the asset in a more diversified portfolio, crypto market research firm K33 noted in a report. BTC's 30-day price correlation with the tech-heavy NASDAQ index fell to 0.26, its lowest level since December 2021, according to K33 data. BTC's correlation with the S&P 500 index also declined last month to levels not seen since late 2021. Bitcoin has lured investors over the years as an asset whose price moves independently from other investment classes, but those claims came into question in the recent past as the crypto's correlation to stocks rose to high levels during parts of 2021 and 2022. |
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- The chart shows smaller tokens like decentralized GPU-based rendering solution Render Network's RNDR, and ARPA, the native token of privacy-preserving computation network ARPA Chain, outperformed market leaders by a big margin in the week ended May 23.
- RNDR has perhaps benefitted from speculation that Apple's virtual reality headset will utilize its decentralized graphics processing network.
- APRA Chain's impending mainnet launch, reportedly due in June, seems to have galvanized investor interest in the native cryptocurrency.
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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. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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