Here are the top stories in crypto news this week. Crypto market chop prices move almost perfectly sideways, with surprise macro and crypto factors shaking the markets on Friday.
What’s in store for the crypto news this week?
Good morning, afternoon or evening thank you for reading this article, In this article, I am going to share Bullish Ethereum updates, the CME plans on launching an ETH product, Hong Kong launches an Ethereum ETF, and Coinbase’s Layer 2 preparing to launch.
Last week, the crypto market moved mostly sideways due to the relative absence of any significant crypto or macro factors. Friday was the exception. The PCE for May came in lower than expected, and the Wall Street Journal reported that the SEC had deemed the recent spot Bitcoin ETF filings as inadequate.
As per Fed’s press conferences, the Personal Consumption Expenditures Index (PCE) is the Fed’s favorite inflation figure. A lower-than-expected PCE reading suggests the Fed could ease sooner than expected. However, the caveat, in this case, is that although headline PCE fell below 4%, core PCE remains high at 4.6%.
While a declining headline PCE is still good news due to setting inflation expectations, a sticky core PCE is a big problem for the Fed. When you combine a high core PCE with revised numbers for Q1 GDP that suggests the U.S. economy grew more than expected, what you get is an even higher chance of a rate hike at the Fed’s meeting later this month.
Lo and behold, investors are pricing in an 87% chance of another 25 basis point hike. However, this didn’t seem to affect BTC’s price that much, which isn’t all that surprising given that crypto hasn’t been as correlated to stocks lately, which rallied as they always do.
The big catalyst in BTC’s case was the news that the SEC believes the recent spot Bitcoin ETF filings are inadequate. Before the crypto industry could even get a grip on what was going on, BTC’s price tanked, primarily due to liquidations from over-leveraged longs. Once everyone realized that it was another one of those “according to sources familiar with the matter” situations, the crypto market started to calm down after a few hours. BTC was back above 30k, and most of the institutions that had filed for a spot Bitcoin ETF with the SEC had refiled according to the supposed specifications.
This begs the question of where the crypto markets are headed next, and the answer really depends on which indicators you watch. What’s interesting is that Bitcoin’s dominance seems to have fallen slightly after the ETF fund and didn’t manage to recover. Meanwhile, Ethereum’s dominance increased slightly and has held its ground. This could be a sign that investors were taking profits on BTC and rotating those profits into ETH. This would make sense considering that BTC has been abnormally strong against ETH lately.
we’ve been tracking ETH’s strength, or rather its lack thereof, for the last few weeks. Despite ETH’s recent strength, it’s still looking weak. As you can see, there was a bearish monthly close for ETH against BTC with a Bollinger Band squeeze.
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