Market performance:
On Tuesday, Fed officials again hinted at a wait-and-see stance, believing that they should ensure that inflation falls back to the target before considering a rate cut. U.S. stocks shook off the impact of Fed officials' speeches during the session. Major U.S. stock indexes turned positive during the session, with the S&P and Nasdaq hitting record highs. In the foreign exchange market, Fed policymakers were cautious about rate cuts, the U.S. dollar stabilized, and non-U.S. currencies fluctuated slightly. The offshore RMB, which had fallen below 7.25 for the first time in nearly three weeks, finally closed flat; two-year U.S. Treasury bonds fell sharply and yields rose in the short term. Crude oil continued to fall from its high this month, falling 2% during the session. New York gold and London copper futures fell to record highs, with New York copper closing at a record high in three days.
In the cryptocurrency market, the upward adjustment of the approval expectations of the spot Ethereum ETF has greatly increased market confidence. Bitcoin once approached the 72,000 mark to hit a six-week high, and then fell back by nearly $3,000. The current price is $69,997, a drop of about 1.76% in 24 hours, and a 34.44% drop in trading volume in 24 hours. Bitcoin spot ETFs have seen net inflows for seven consecutive days, with about 4,277 inflows yesterday.
As of 10:30 am on May 22, the top five cryptocurrency gains and losses in the past 24 hours are as follows:
LADYS rose 28.20%, PEPE rose 26.81%, PEOPLE rose 26.55%, EDU rose 19.77%, and STMX rose 19.31%; LFT fell 16.82%, POPCAT fell 11.18%, VELO fell 10.47%, PUNDU fell 9.62%, and PRCL fell 7.83%.
The top three cryptocurrencies by market capitalization, BTC, ETH, and BNB, fluctuated in price within 24 hours, with prices quoted at $69,997.2, $3,781.16, and $619.3 respectively. Today's Fear and Greed Index is 76 (yesterday's was 76), and the greed level remains unchanged, with the rating still at Greed.
Bitcoin ETF flows
Tracking hot crypto events
1. VanEck's spot ETH ETF is listed: VanEck's spot Ethereum ETF has been listed on DTCC with the stock code ETHV.
2. Binance Labs invests in Aevo: Binance Labs announced its investment in Aevo.
3. Cronosâ zkEVM testnet upgrade: Cronos announced that its zkEVM testnet has been successfully upgraded to the Tethys version and plans to launch the mainnet in the summer.
4. Floki DAO token burning plan: Floki DAO plans to burn 15.246 billion FLOKI tokens on May 22.
5. Gala team token burning proposal: The Gala team received $20 million from hackers after a security incident and proposed to burn approximately 5 billion tokens.
6. Jupiter's Giant Unified Market plan: Jupiter announced the launch of the Giant Unified Market initiative. The team plans to include meme coins, physical backing assets (RWAs), stocks and foreign exchange into atomic transactions.
7. Uniswap Labs' response to the SEC Wells Notice: Uniswap Labs has responded to the Wells Notice from the U.S. Securities and Exchange Commission (SEC). The team expects the House of Representatives to pass a bill tomorrow that would grant the Commodity Futures Trading Commission (CFTC) regulatory authority over digital asset trading.
8. XAI halving event: XAI announced the completion of the first XAI token halving event.
9. Farcasterâs Financing: Farcaster raised $150 million in a round of financing led by Paradigm, a16z, and Standard Crypto.
10. Trump campaign accepts cryptocurrency donations: Trumpâs US presidential campaign now accepts donations in SOL, BTC, ETH and other tokens.
11. zkSync token airdrop expectation: zkSync token airdrop is expected to take place around June 13.
Crypto Market Data
Changes in Bitcoin and stablecoin balances on exchanges:
BTC liquidation line:
BTC, ETH Binance spot orders:
Changes in TVL of public chains and protocols on the chain:
Smart money trends on the chain:
Stock Market Tracking
ăU.S. stocksă
The S&P closed up 0.25% at 5,321.41 points, rising for three consecutive days; the Nasdaq closed up 0.22% at 16,832.62 points, setting a new closing record for two consecutive days; the Dow Jones Industrial Average closed up 66.22 points, or 0.17%, at 39,872.99 points.
ăU.S. debtă
The yield on the benchmark 10-year U.S. Treasury bond was about 4.41% at the end of the bond market, down about 3 basis points on the day. The yield on the 2-year U.S. Treasury bond, which is more sensitive to interest rate prospects, was about 4.83% at the end of the bond market, down nearly 2 basis points on the day.
ăDollară
When U.S. stocks closed on Tuesday, the U.S. dollar index was above 104.60, up less than 0.1% on the day.
ăgoldă
When the U.S. stock market closed, spot gold was above $2,420, down more than 0.1% on the day; COMEX June gold futures closed down 0.52% at $2,425.9 an ounce, falling from the historical closing high that had been refreshed for two consecutive days.
Macro dynamics
Fed interest rate path: Fed Governor Waller: The weak inflation data in the next three to five months will allow the Fed to consider cutting interest rates at the end of the year, and there is no need to raise interest rates at the moment. Fed Vice Chairman Barr reiterated the need to maintain high interest rates for a longer period of time;
Atlanta Fed President Bostic: To ensure that inflation does not rebound, it is expected that there will be no interest rate cut before Q4;
Fed Collins: It will take longer to see the progress needed to adjust interest rates. Fed Mester: The long-term neutral interest rate estimate was raised in the latest forecast, and the current policy level may not be "as tight as expected".
Yohay Elam, Analyst
Since the last Fed meeting, non-farm payrolls have been below expectations and unemployment has risen. The minutes released this week may reveal more about the extent of concerns about the labor market. If the minutes are dominated by dovish officials' concerns about rising unemployment, the dollar will fall and non-US assets are expected to rise. Conversely, if inflation falls less quickly than they expect in the first quarter and interest rates remain the main topic of the minutes, the dollar will be boosted. It is worth noting that Fed officials did not modify the minutes until the last minute, knowing full well how the market would view the minutes. Since the latest CPI data shows that inflation is slowing, I expect the minutes to be more dovish, which will please the market. Even if the tone is more hawkish, any decline is likely to be short-lived. US stocks are trending upward, and any comments from the Fed will be seen as outdated, that is, it is just a bump on the road to rise. Market reactions to Fed minutes tend to be short-lived.
Today's Focus
Overview of Crypto Regulatory Trends
Crypto Market Hot News
Trump's presidential campaign officially accepts Bitcoin and crypto donations
Trumpâs presidential campaign has launched a fundraising page that allows any federally permitted donor to donate through its joint fundraising committee using any cryptocurrency accepted by the Coinbase Commerce product. Donation limits and disclosure requirements for cryptocurrency donations will follow Federal Election Commission regulations.
Grayscale removes collateral clause in ETHE conversion to Ethereum spot ETF filing
According to The Block, Grayscale deleted the terms regarding pledge in its filing to convert ETHE into an Ethereum spot ETF, according to the revised preliminary proxy statement.
Gala Games: Stolen funds have been recovered and will use GalaSwap to convert ETH back to GALA
Web3 gaming project Gala Games said that the funds stolen in the recent security incident have been recovered and the team will use GalaSwap to convert ETH back to GALA.
Source: CoinShares, Valkyrie will not apply for Ethereum spot ETF, mainly because there is no pledge
Fox reporter Eleanor Terrett tweeted that Bitcoin spot ETF issuer CoinShares and Valkyrie will not apply for Ethereum spot ETF, mainly because there is no staking. Sources familiar with the situation said that without supporting staking, the company cannot bring value to investors, especially in a crowded market with 9 other issuers.
5 issuers have submitted Ethereum spot ETF 19b-4 amendments to the US SEC through Cboe BZX
Bloomberg ETF analyst James Seyffart said that five potential Ethereum spot ETF issuers have submitted 19b-4 revised documents to the U.S. Securities and Exchange Commission (SEC) through Cboe BZX, including: Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares and Franklin.
Middle East situation tracking
Israeli-Palestinian conflict:
The Palestinian permanent observer to the United Nations urged the reopening of the Rafah crossing.
Source: Egypt arbitrarily changed the ceasefire agreement submitted to Hamas.
According to the Times of Israel: Israel said Hezbollah's coastal rocket commander was killed in the attack.
According to the Washington Post: Israel has reportedly reached an agreement with the United States to shelve plans for a large-scale attack on Rafah.
Palestinian Health Ministry: Israeli firing in Jenin in the occupied West Bank has killed three Palestinians and injured eight.
other:
The Yemeni Houthi armed forces claimed that they shot down two US MQ-9 drones recently.
Market news: Yemen's Houthi armed forces claimed to have shot down a US drone in Bayda province.
The White House denied that the crash of the Iranian president's plane was related to US sanctions.
Iran's acting foreign minister spoke by phone with officials from several countries to discuss bilateral relations.
According to people familiar with the matter: The Irish government will announce its recognition of the State of Palestine on Wednesday.
US Secretary of State Blinken: The US government will be happy to work with Congress to make an "appropriate response" to the International Criminal Court's actions regarding Israel.
