● QCP Capital Analysis: US election and interest rate cuts may drive cryptocurrency market bullishness at the end of the year
According to Wu, QCP Capital Analysis points out that the bullishness of the cryptocurrency market from now to the end of the year may rely on two factors. First, the US election will end in November this year, and historically the market tends to be optimistic about the election. Trump has been making cryptocurrency-friendly proposals, which may lead Biden to adopt a similar tone as both parties try to win the cryptocurrency vote. Second, unless the Federal Reserve explicitly rules out the possibility of a rate cut or hints at a rate hike, the market seems likely to continue to digest the impact of the rate cut, and these expectations may keep the market bullish for some time.
● Fed's Kashkari: Cautious attitude towards monetary policy, the threshold for another rate hike is high
According to Odaily Planet Daily, Kashkari of the Federal Reserve said that he was cautious about the restrictiveness of monetary policy, and was taking a wait-and-see attitude towards future monetary policy, and was in a wait-and-see state to see whether inflation stagnated. He further pointed out that the threshold for another rate hike is high, but this possibility cannot be ruled out. If inflation data supports it, the Federal Reserve will keep interest rates unchanged.
● Fed's Logan: It's too early to consider rate cuts
According to Jinshi, Fed's Logan said that there are important upside risks to inflation and it is too early to consider a rate cut. He stressed that we need to remain flexible in policy.
● U.S. Congress may vote on new crypto legislation by the end of May
According to PANews, Patrick McHenry, chairman of the House Financial Services Committee, said that the U.S. Congress may vote on the 21st Century Financial Innovation and Technology Act (FIT21) before the end of May.
FIT21 will give the CFTC jurisdiction over crypto commodities and the SEC jurisdiction over cryptocurrencies offered in investment contracts. FIT21 also sets rules for companies that must register with the SEC and CFTC, including requirements for customer disclosure, asset protection, and operations. The legislation aims to provide a clear regulatory framework for digital assets and address long-standing market regulation and consumer protection issues.
It is reported that FIT21 is the most comprehensive cryptocurrency legislation passed by congressional committees to date and an important milestone in digital asset regulatory legislation.
● Wells Fargo Bank disclosed that it holds 2,245 shares of Grayscale GBTC
According to PANews, Wells Fargo, the third largest bank in the United States, disclosed in a document submitted to the U.S. Securities and Exchange Commission (SEC) on May 10 that it holds 2,245 shares of Grayscale GBTC. In addition, Wells Fargo also holds a small amount of shares in ProShares BITO and Bitcoin ATM supplier Bitcoin Depot.
● 10x Research founder: The correlation coefficient between BTC and ETH reaches 95%
According to BlockBeats, Markus Thielen, founder of 10x Research, said on social media that in the current cycle, the correlation coefficient between BTC and ETH is as high as 95%.
He believes that Ethereum's weak fundamentals are becoming an obstacle for Bitcoin because they prevent large-scale fiat currencies from flowing into the crypto ecosystem. In addition, Thielen said that in the last 2020/2021 cycle, ETH was a driving factor because Ethereum was supposed to replace the traditional banking system. The minting of NFTs opened up new areas of crypto adoption, which could have expanded to various personalized documents on the blockchain, driving widespread "wallet" adoption. However, Ethereum developers did not respond quickly.