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BTC surges above $21,000, ETH targets $1.2,000 as risk appetite rises

Important points

  • Crypto is expected to end the week outperforming altcoins as risk appetite rises.

  • Falling bond yields and commodity prices amid growing calls for a US recession were cited as supportive for risk assets.

  • Bitcoin traded consistently just above $21,000 and Ethereum near $1,200.

state of the market

Broad macro risk appetite should end the week on a robust note as US stock index futures eye a test of new two-week highs. The E-mini S&P 500 futures is currently up about 0.7% in premarket trading in the mid-3,800s and has extended gains to about 5.0% from earlier weekly lows in the mid-3,600s, with this recovery in sentiment is helping to support cryptocurrency prices.

Bitcoin last consolidated just north of $21,000, towards the top of this week’s high-$19,000-high-$21,000 range and more than 20% above the weekend lows near $17,500. Ethereum, on the other hand, has recently been trading at weekly highs just below $1,200 and about 35% higher than last weekend’s lows of under $900 per token.

The outperformance of stocks and crypto this week came as a surprise amid a growing chorus of economists, major financial institutions and even Fed Chair Jerome Powell himself warning of the rising risk of a US recession. However, analysts said this resilience in risky assets like stocks and crypto could be due to a sharp decline in US Treasury yields and key commodity prices, itself directly reflecting rising recessionary risks. This drop in commodity and bond yields points to a more tame inflation outlook and less hawkish central banks.

In terms of major altcoins, Polygon’s MATIC token is up more than 18% over the past 24 hours, according to CoinMarketCap data, with MATIC/USD trading up almost 50% on the week near $0.60 and higher. Analysts have cited recent benefits as downsides of a new product released by Polygon’s development team that allows for more private voting in decentralized autonomous organizations (DAOs). The new product, called Polygon ID, is a system that verifies user identification and allows individuals to maintain their anonymity when voting on governance proposals. The product went live on Polygon DAO earlier this week.

The next best performer is Ripple’s XRP, which is over 13% higher over the past 24 hours and nearing the $0.40 per token level, while Avalanche, Shiba Inu and Solana are all higher in the 7-10% range same period. Solana doesn’t seem to have got much lift from the news that Solana Labs, the blockchain’s major shareholder, is planning to release its own Web3-integrated mobile phone called “Saga”. In general, altcoins are performing better on Friday, suggesting an improvement in crypto risk appetite.

NFT Market Update: Soccer Icon Cristiano Ronaldo Signs NFT Deal With Binance, Snoop Dogg & Eminem Release BAYC-Themed Music Video

Football (soccer for North Americans) icon Cristiano Ronaldo, widely regarded as one of the greatest players of all time, has signed an exclusive multi-year partnership with crypto exchange Binance to launch a series of Non-Fungible Token (NFT ) collections. These NFTs will be sold exclusively on Binance’s NFT marketplace, with the first collection expected to appear later this year.

Commenting on the collaboration, Ronaldo said that “my relationship with the fans is very important to me, so I wanted to be a part of the idea of ​​bringing unprecedented experiences and access through this NFT platform”. Binance CEO and Founder Changpeng Zhao said that the owners of the Binance/Ronaldo NFTs would secure “exclusive engagement opportunities to connect with Ronaldo.” Ronaldo has over 450 million followers on Instagram.

Elsewhere on Friday, US rap/hip-hop superstars Snoop Dogg and Eminem released a new Bored Ape Yacht Club (BAYC) NFT music video for their song “From The D 2 The LBC.” Both rappers own an NFT of the cartoon monkey, giving them intellectual property rights to the images, allowing them to feature the monkeys in their commercial endeavors.

The floor price to get your hands on one of Bored Ape Yacht Club’s 10,000 unique NFTs was last just over $100,000, which it’s been hovering around for the past ten or so days. This puts the market capitalization of the reserve price of the world’s most valuable NFT collection at just over $1 billion. Many big celebrities own BAYC NFTs.

Meanwhile, the North American National Hockey League (NHL) just signed a multi-year partnership with NFT platform Sweet to build a marketplace for digital collectibles. The NHL’s push into the NFT space follows recent moves by other major US sports leagues. The NBA, MLB, and NFL have all announced similar NFT projects in recent years.

Crypto Winter: CoinFLEX Pauses Payouts, Voyager Digital Caps Payouts, Moody’s Downgrades Coinbase

Crypto futures exchange CoinFLEX announced on Thursday that it would suspend withdrawals amid “extreme market conditions.” The company said it expects to resume withdrawals when it is “in a better position as soon as possible”. Trading in perpetual swaps and on spot markets was also discontinued. CoinFLEX’s payout freeze comes as a payout pause by major crypto exchange/lending platform Celsius Network enters its 11th yearth Day.

Elsewhere, crypto broker Voyager Digital, which recently received funding from FTX CEO Sam Bankman-Fried, announced earlier this week that its daily withdrawal limit was reduced from $25,000 to $10,000 as it exposed to ailing crypto hedge fund Three Arrows Capital (3AC). Earlier in the week, the company said it had amassed $720 million in exposure to 3AC via stablecoins and bitcoin.

In terms of stock market news, global rating agency Moody’s has downgraded US crypto exchange Coinbase’s corporate bonds from Ba3 to Ba2. The rating agency said the downgrade comes amid “Coinbase’s significantly weaker revenue and cash flow generation due to the sharp decline in crypto asset prices that has occurred in recent months and reduced trading activity by customers.”

Coinbase announced this week that its derivatives exchange will launch its first crypto derivatives makers later this month in hopes of attracting more retail customers. The futures exchange will issue “Nano Bitcoin Futures” (BIT) which are 1/100th the size of a traditional Bitcoin Future.

Speaking of crypto miners, Wall Street broker B. Riley lowered its share price targets for publicly traded crypto miners this week. The company cut US mining giant Marathon Digital to neutral from a buy rating and lowered its price target to $9 from $34 (the current share price is in the $6-7 region), focusing on a combination of a lower Bitcoin Price Linked to “Repeated Delays in Power Supply to Miners Outside of Montana”

Elsewhere, Binance CEO and founder Changpeng Zhao argued in a recent blog post that “bad” crypto projects should not be left to fail. Unfortunately, some of these bad projects have large user bases, often as a result of over-incentives created by “marketing or pure Ponzi schemes,” he said.

Regulatory Landscape: Fed Chairman Powell believes the digital dollar should be issued by the US government, not a private company

Fed Chair Jerome Powell said on the second day of his semi-annual testimony before the US Congress on Thursday that he does not prefer a private stablecoin to become a digital dollar. “If we want a digital dollar, it should be government-guaranteed money, not private money,” Powell said.

The Fed chair told Congress that the launch of a central bank digital currency (CBDC) “is something that we as a country really need to explore” and that the Fed plans “on both the political and financial front in the coming years.” to work on the technological side”. come to Congress sometime with a recommendation”. Powell’s comments will not go down well with issuers of some of the largest USD-backed/pegged stablecoins currently in existence, such as Tether and Circle Internet Financial.

Elsewhere, Cardano co-founder Charles Hoskinson made some interesting remarks on regulation and compliance in a separate congressional hearing on crypto regulation. Congress should make the regulations but leave compliance to software developers, much like the banking industry regulates itself.

“It’s not the SEC (Securities and Exchange Commission) or the CFTC (Commodities Future Trading Commission) that’s out there doing KYC-AML (Know Your Customer and Anti-Money Laundering), it’s banks,” he noted. According to Hoskins, this would allow the crypto industry to create self-regulatory organizations (SROs) to manage compliance, just as is happening in the private banking industry.

Over in the UK, the country’s former Chancellor of the Exchequer (the UK equivalent of the Treasury Secretary) Philip Hammond warned Thursday that the UK could be falling behind its rivals when it comes to crypto regulation. The former Chancellor told Bloomberg that “Britain has missed a trick… We are approaching the point where it will be too late… Other jurisdictions are ahead of us”.

“The jurisdictions that have adopted this technology and properly and effectively regulated it will be the ones that will develop these markets and they will become the new hubs,” Hammond noted. For what it’s worth, the UK government announced plans to introduce new crypto regulations back in May, with the stated goal of becoming a global hub for crypto and blockchain technology. Meanwhile, the world’s largest stablecoin issuer, Tether, also this week announced the launch of a new stablecoin denominated in pound sterling (GBPT), hailing the UK as the new frontier in crypto innovation.

This article was originally published on FX Empire

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