Wondering why the market is fluctuating? #EarnFreeCrypto2024 As we kick off a short week, investors in a range of speculative assets are seeing selling pressure build. Of course, there are plenty of macro reasons for this trepidation. Some rather important inflation readings are due later this week, which could impact everything from growth stocks to commodities to cryptocurrencies. Everything is tied to interest rates these days. In the crypto world, Bitcoin $BTC , Ethereum $ETH , and Dogecoin $DOGE are among the megacap tokens seeing declines today. Over the past 24 hours, these three top tokens have slumped 3.8%, 3.5%, and 4%, respectively, as of 2:30 p.m. ET.
Let's dive into what's driving today's price action in these top tokens.
Enthusiasm over key catalysts wears off Investors in these three megacap tokens have certainly had quite the run over the past few weeks, and really since the beginning of the year. Bitcoin started the party off with the approval of a dozen spot exchange-traded fund (ETF) products, which conjured up some significant demand for its token. In combination with a halving event, which saw the amount of newly minted Bitcoin slashed in half, this created a supply-and-demand dynamic investors liked.
Ethereum recently saw similar catalysts take hold, with the Securities and Exchange Commission (SEC) approving spot Ethereum ETFs last week as well. Additionally, previous upgrades have resulted in Ethereum becoming less inflationary, and depending on the day, deflationary based on token burn metrics relative to transaction volumes.
As a more speculative asset, Dogecoin has ridden market momentum higher. But with these catalysts now seemingly in the rearview mirror (it's really amazing how quickly the market adjusts to news, particularly in this space), some investors may be looking to sell into this news and wait patiently for another catalyst to take hold. A similar "sell the news" effect took place immediately following the anticipated approval of spot Bitcoin ETFs earlier this year.
$MANTA Manta announced the launch of CeDeFi on May 19, describing the product as generating both CeFi and DeFi yields in parallel. Yields are earned through a combination of DeFi yields on the Manta Pacific chain alongside stablecoin funding rate arbitrage on centralized exchanges.
Custody services are provided by Ceffu, formerly Binance Custody. Binance Custody launched in December 2021 and rebranded to Ceffu in February 2023. Assets deposited to Manta CeDeFi are held by Ceffu, with users receiving on-chain “liquid custody tokens” representing their holdings on Manta Pacific that can be used for on-chain DeFi.
Funds are also “mirrored” to represent assets on the Binance centralized exchange via Ceffu’s MirrorX service, facilitating the execution of CeFi strategies.
“Ceffu generates revenue through Delta-neutral, low-risk trading strategies enabled by MirrorX,”
1. Research the Project: Understand what $MANTA is, its purpose, technology, team, and roadmap. Look for reputable sources of information. Manta CeDeFi currently supports deposits in the form of ETH, StakeStone’s Ether liquid staking token, STONE, Bitcoin tokens wBTC and BTCB, and the stablecoins USDT, USDC, and wUSDM.
2. Evaluate the Team: Assess the team's experience, expertise, and track record in the industry.
3. Analyze the Market: Look at the market demand for the project's solution and the potential for growth.
4. Assess Risk: Consider the risks associated with investing in $MANTA , such as regulatory, technological, and market risks.
5. Diversify Your Portfolio: Don't put all your funds into a single asset. Diversify across different assets to spread risk.
6. Use Dollar-Cost Averaging: Instead of investing a lump sum, consider investing a fixed amount regularly over time to reduce the impact of market volatility.
7. Set Realistic Expectations: Understand that all investments carry some level of risk, and there are no guarantees of $MANTA #MantaRWA
Ethereum $ETH #ETHETFS expectations According to IntoTheBlock's research, 95% of current ETH positions are now profitable, with its price increasing by 30% over the past seven days. This level of profitability has not been observed since November 2021, when ETH prices soared to an all-time high.
There is minimal resistance to the volume of ETH purchased at prices higher than current levels. Specifically, 3.57 million ETH were bought in the price range of $3,800 to $4,800, compared to 53.54 million ETH purchased between $2,160 and $2,650.
ETH whales have also begun to make significant moves, following the increased odds of ETF approval. On Tuesday the 21st, ETH recorded an on-chain trading volume of $15.98 billion, marking the highest volume recorded since June 13, 2022.
Of the $15.98 billion in trading volume recorded, $14.33 billion came from transactions exceeding $100,000, typically conducted by whales. This represents 90% of the total traded volume for this day. This trend could be expected to accelerate now that the ETFs have indeed been approved.
The approval of the ETH ETFs marks a significant milestone in cryptocurrency acceptance, likely influencing increased activity among ETH whales as reflected by recent large-volume transactions. The shifting landscape, underscored by substantial on-chain trading volumes, suggests a growing institutional and investor confidence in Ethereum.
-$ETH This is the SEC’s second decision regarding crypto Exchange-Traded Products. Earlier this year, in January 2024, the SEC, after a long battle, approved Bitcoin ETFs and ETPs. The exchanges had sought SEC approval for a rule change required to list these new products, which was successfully granted. However, trading will not start immediately, as issuers still need the SEC to approve individual ETF registration statements detailing investor disclosures. According to Reuters, industry participants said it was unclear how long the SEC’s approval process might take.
The US Securities and Exchange Commission (SEC) approved the sale of spot Ether Exchange-Traded Funds (ETFs) in the United States on May 23, 2024. The SEC combined proposals from the Nasdaq, NYSE, and CBOE exchanges, which requested changes to existing rules to allow the trading of Ethereum Exchange-Rraded Products (ETPs) and ETFs.