A Glassnode analyst suggests the collapse of the UST token has triggered a change in investors’ stablecoin preferences; bitcoin holds above $30,000.
Good morning. Here’s what’s happening:
Prices: Bitcoin and other major cryptos see green, but market sentiment remains bearish.
Insights: Investors change their stablecoin preferences.
echnician’s take: BTC is on track to register a positive momentum signal on the daily chart.
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Bitcoin (BTC): $30,466 +1.6%
Ether (ETH): $2,092 +3.1%
|Algorand||ALGO||+7.5%||Smart Contract Platform|
|Polygon||MATIC||+7.3%||Smart Contract Platform|
There are no losers in CoinDesk 20 today.
Bitcoin and other major cryptos see green
Bitcoin and other major cryptos were largely in the green late Tuesday as the market continued to solidify, but the small surge seemed more a temporary reprieve than sea change in bearish sentiment that intensified last week during terraUSD stablecoin (UST) implosion.
The largest cryptocurrency by market capitalization was recently trading over $30,400, a more than 1% gain over the past 24 hours. Ether was up about 3% during the same period, maintaining its most frequent, recent perch above $2,000. ALGO and MATIC each rose over 7%. SOL, CRO and ADA recovered from midday drops and were up about 4%.
“The crash of [Terra’s] UST stablecoin has heralded the end of a momentous bull run,” Yield App CEO and founder Tim Frost wrote in an email. “The market is 54% below” its “all-time high and won’t be climbing far any time soon as we face what looks set to be a painfully prolonged bear market.”
Cryptos traced equity markets, which rose amid encouraging U.S. retail spending and industrial production reports and cautiously optimistic remarks by U.S. central bank Chair Jerome Powell. The tech-focused Nasdaq jumped 2.7%, while the the S&P 500 and Dow Jones Industrial Average rose 2% and 1.3%, respectively.
The U.S. Commerce Department said on Tuesday that retail sales had risen 0.9% in April, the fourth consecutive monthly increase and evidence that surging inflation has not completely dampened consumers’ appetites for goods and services. The report noted increased spending on electronics, cars and clothing, even as consumers spent less on gas, which has been a primary source of the recent months’ cost run-ups. Meanwhile, the Federal Reserve said that Industrial production rose 1.1% in April, also its fourth straight monthly gain.
In remarks at The Wall Street Journal’s Future of Everything Festival on Tuesday, Powell called “restoring price stability a nonnegotiable need.” “It is something we have to do,” he said, adding that he was hopeful the Fed could tame inflation without triggering huge increases in unemployment or a deep recession. “It is a challenging task, made more challenging the last couple months because of global events,” Powell said. “It is challenging because unemployment is very low already and because inflation is very high.”