Good morning. Here’s what’s happening:
Prices: Bitcoin and a few altcoins had a good day; ether was down.
Insights: Tether is honoring 1:1 peg redemptions – so far.
Technician’s take: Buyers are reacting to oversold conditions, although upside in BTC appears limited.
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Bitcoin (BTC): $31,837 +0.3%
Ether (ETH): $1,947 -2.4%
Bitcoin rises, but not ether
Bitcoin continued its recent, mini-rebound on Tuesday, at least temporarily.
The largest cryptocurrency by market capitalization was still chugging along near $32,000, the threshold it crossed during midday trading in a follow-up to a U.S. holiday weekend surge. Bitcoin has risen nearly 8% over the last nearly four days. Still, analysts remained cautious about predicting any long-term bounce to the upside amid ongoing inflationary concerns and the prospect of a recession.
“The emerging rebound from the bottom may be self-sustaining at first, as many market participants believe that the crypto market has corrected enough to become attractive for long-term buying,” FxPro Senior Market Analyst Alex Kuptsikevich wrote. “However, fundamentals such as halving, soft monetary policy or accelerated adoption are needed for growth to continue.”
Bitcoin was faring better than ether, which spent much of Tuesday in the red and was recently changing hands at about $1,950, a 2% decline. Other altcoins were mixed with SOL and AVAX recently down over 3%, but ADA soaring over 25% at one point amid a a rise in the issuance of native assets on the network and the upcoming Vasil hard fork, a network upgrade expected in June that would increase scaling capabilities. AXS rose more than 15% at one point.
Stocks dropped, breaking a short winning streak as investors weighed central banks’ approach to tame rising prices and a decline in the Conference Board’s consumer confidence index. The tech-heavy Nasdaq, Dow Jones Industrial Average and S&P 500 all fell less than a percentage point.
Annual inflation in eurozone countries climbed in May to 8.1% annually, its highest level since the launch of the euro currency. Meanwhile, the fallout of Russia’s unprovoked invasion of Ukraine continues to grow, with eurozone countries discussing how they might help Ukraine evade a Russian naval blockade to help the country export grain, and separately, the possible seizure of Russian central bank assets. Brent crude oil, a widely regarded measure of energy markets, was trading at over $116 per barrel.
The news was potentially more upbeat in China, where COVID-19 cases plunged below 100 nationwide for the first time since March, and the country’s largest city, Shanghai announced plans to begin reopening its economy. And U.S. President Joe Biden met with Fed Chair Jerome Powell and U.S. Treasury Secretary Janet Yellen to discuss ways to combat inflation.
In an appearance on CoinDesk TV’s First Mover program Tuesday, Opimas CEO and founder Octavio Marenzi noted that possible Federal Reserve flexibility about a rate hike much later in the year after it raises rates at its next two meetings had “given crypto markets breathing room to say ‘maybe they’re going to go back to printing more money more rapidly. That’s helping crypto in the very, very short term. But I think we’re likely to be disappointed in that in the long term.”