Cryptocurrency daily summary:
U.S. House of Representatives passes cryptocurrency market structure bill
Taiko announces the launch of the TKO air investment qualification inquiry page
Cardano’s ‘centralization concerns’ cause ADA price to drop 30%
Let’s first look at the trading activities of Bitcoin ETFs. According to Farside Investor data, on May 22, Grayscale Bitcoin Spot ETF (GBTC) saw an outflow of US$16.1 million; at the same time, Fidelity Bitcoin Spot ETF (FBTC) saw an inflow of US$74.6 million, and ARK 21Shares Bitcoin Spot ETF (ARKB) saw an inflow of US$3.5 million.
U.S. House of Representatives passes cryptocurrency market structure bill
On Wednesday, the U.S. House of Representatives passed the Republican-led Financial Innovation and Technology for the 21st Century Act, also known as FIT21, by a vote of 279 to 136. The bill’s passage marked the first time that comprehensive crypto legislation has come to a vote in the House, with 71 Democrats voting in favor of the bill, including former House Speaker Nancy Pelosi, D-Calif.
FIT21 aims to regulate the entire cryptocurrency industry, giving the Commodity Futures Trading Commission more power and funding to oversee the cryptocurrency spot market and "digital commodities," especially Bitcoin. The bill also creates a process to allow secondary market trading in digital commodities that are "initially offered as part of an investment contract." In addition, the bill also contains stablecoin and anti-money laundering provisions. Although FIT21 is unlikely to be introduced in the Senate this year, the bill could lay the groundwork for the next Congress in January next year.
Ron Hammond, director of government relations at the Blockchain Association, said that Congressional views on cryptocurrencies are changing. He believes FIT21 is "a huge turning point" and said: "The connection between crypto voters and the upcoming election is undeniable, and the Biden administration seems to have finally begun to realize the potential consequences of maintaining the status quo."
The FIT21 vote comes after the Senate and House passed a measure to revoke a SEC staff accounting bulletin that sets certain accounting standards for companies that custody cryptocurrencies. The resolution was supported by some Democrats, including Senate Majority Leader Chuck Schumer, D-N.Y. However, the White House said President Joe Biden would veto the bill. On Wednesday, the White House said it opposes FIT21 but is "eager to work with Congress" to develop a regulatory framework for digital assets.
Taiko announces the launch of the TKO airdrop qualification inquiry page
Taiko, the Ethereum L2 network based on zkRollup, officially announced the launch of the first phase of TKO airdrop on the X platform early this morning, and launched the airdrop qualification query page. It is reported that 5% of the initial token supply will be provided in the first phase. Users have 7 days to check their qualifications. After the check is completed, the claim window will be opened, and eligible users will have one month to claim TKO.
TKO airdrop application has not yet been launched. Please refer to the official information for application and beware of related scams. According to the TKO token economics model, the total supply is 1 billion, and the specific distribution includes:
DAO Teasury accounts for 20%; Trailblazer airdrop accounts for 10%; Genesis airdrop accounts for up to 5%; liquidity and market makers account for 5%; investors account for 11.62%; Taiko Labs/core team accounts for 20%; Taiko Foundation reserves account for 16.88%; Taiko official Prover Bonds account for 1.5%, and so on.
Cardano’s “centralization concerns” trigger ADA price crash of 30%
The price of ADA plummeted after analysts questioned the centralization of the Cardano network. Cryptocurrency analyst Justin Bons said that Cardano’s parent company Input Output Global (IOG) controls five of the blockchain’s seven “genesis keys”, which were used to sign and establish the initial blocks of the Cardano blockchain back in 2015.
“The genesis key allows for code changes to be rolled out seamlessly without a hard fork,” the analyst noted. “This means that IOG can stop the chain, change emission schedules, censor, and more, an unprecedented level of centralized control over an L1 chain,” he added.
As of May 22, the price of ADA began to pull back after testing the upper trendline of the triangle. Currently, by the end of May, the price will continue to fall back to the lower trendline around $0.44, a 6.5% drop from the current price level. However, during such price adjustments, the supply of ADA held by whale addresses has increased slightly, indicating that whales do not care about Boggs' warnings about Cardano's alleged centralization.
Market analysis: Short-term profit-taking in the market, long-term positive trend remains unchanged
Market Trends
-BTC: Bitcoin is trading sideways at high levels, temporarily falling below $70,000, which may be due to short-term profit-taking in the market. Nevertheless, the long-term trend of Bitcoin remains bullish, especially against the backdrop of increasing global economic uncertainty.
-ETH spot ETF: Bloomberg analysts predict that its size may only reach 10% of the BTC spot ETF. This prediction reflects weaker market confidence in Ethereum, but may also be a conservative estimate. Once an ETH spot ETF is approved, market demand is likely to increase significantly.
Macroeconomics
-US stock market correction: The Fed minutes hinted that interest rates would not be cut soon, which is a negative factor for the stock market. However, the performance of Nvidia, the leader in technology stocks, exceeded expectations and continued to hit a record high, which shows that technology stocks may continue to be the bright spot of the market.
-Cryptocurrency market: The pullback in U.S. stocks may put short-term pressure on the cryptocurrency market, but in the long run, funds may flow into riskier assets such as cryptocurrencies in search of higher returns.
Market Hotspots
1. Meme concept coin:
-PEOPLE, MAGA, WIF, BOME, MANEKI: PEOPLE and MAGA performed strongly driven by the US election concept. The memes on Solana also performed well, especially MANEKI, which rebounded more than 30% from the low point. With both US presidential candidates being meme-friendly, these meme coins may continue to attract market attention.
Investment strategy: In the short term, you can pay attention to the volatility of these currencies, which are suitable for investors with high risk appetite. In the long term, you need to be vigilant about changes in market sentiment.
2. Other hot currencies:
-$EDU ：The major shareholder Animoca Brands plans to repurchase, which is a direct positive for the price of the currency. It may continue to rise in the short term.
-$BNX ：As a star project of the GameFi concept, this round of increase is close to 10 times. It should be noted that such a high increase may trigger profit-taking.
-$HOOK : It is recommended to pay attention to its subsequent development and changes in market sentiment.
3. Layer2 Network Taiko:
- Announced an airdrop of 5% tokens, mainly to Taiko users and the LRC community. Airdrop news generally brings short-term market heat, but it is necessary to pay attention to the market reaction after the airdrop.
4. AI concept coin:
-LPT surged, but other AI concept coins did not rise significantly. This may be due to the strong market reaction to the specific positive news of LPT. It is recommended to pay attention to the development trend of the overall AI concept and evaluate whether there are other opportunities to follow the rise.
The current market is full of opportunities but also comes with risks. Investors should make flexible adjustments based on their own risk tolerance and market dynamics. For investors with high risk preferences, they can focus on Meme coins and GameFi concept coins, while for conservative investors, it is recommended to focus on long-term investment opportunities in BTC and ETH.
Macro: The Fed’s meeting minutes were released, and the overall stock market fell; technology companies represented by Nvidia still performed well
On May 22, Reuters reported that U.S. stocks closed lower on Wednesday as investors digested the minutes of the Federal Reserve's latest meeting. Semiconductor leader Nvidia's revenue stood out and was stronger than expected, and the company's stock price rose by about 6% after the close. The news also pushed up the stock prices of other chip manufacturers.
Nvidia shares have risen about 90% this year after surging nearly 240% in 2023. Investors are watching to see whether Nvidia's first-quarter results can meet sky-high expectations and whether the sharp rise in artificial intelligence-related stocks can continue.
Indices fell: The Dow fell 0.51%, the S&P fell 0.27%, and the Nasdaq fell 0.18%.
The S&P 500 could end the year near its current level of 5,302, according to analysts polled by Reuters, but warned that the index’s strong performance means a correction is likely ahead. Stocks have risen to record highs this month in part on optimism about artificial intelligence, a solid earnings season and renewed hopes that the Federal Reserve will cut interest rates this year.
Markets are pricing in a 59% chance the Fed will cut rates by at least a quarter point at its September meeting, down from 65.7% in the previous session, according to CME's FedWatch tool.
In the Asian market, on May 23, several major Asian stock market benchmark indices closed lower on Thursday as the market digested the impact of policymakers in major economies' tendency to adopt patient monetary easing policies amid persistently high inflation.
The minutes of the Federal Reserve's latest policy meeting were more hawkish than expected, the UK inflation report attracted much attention, and the New Zealand central bank took a cool attitude towards New Zealand's inflation problem, leading investors to reduce their bets on the speed and scale of global interest rate cuts.
MSCI's index of Asia-Pacific shares fell 0.57%. Australia's S&P/ASX 200 was among the biggest losers, falling 0.8%, hurt by a pullback in some commodity prices. Hong Kong's Hang Seng fell 1.5% on profit-taking after hitting a more than nine-month high earlier this week. China's blue-chip index fell 0.3%.
Japan's Nikkei hit its lowest level in more than three weeks, while the yen rose 0.6%. The yen last stood at 156.85 to the dollar.
In commodities, oil prices fell, with Brent crude down 0.82% to $81.23 a barrel and U.S. crude down 0.9% to $76.87 a barrel.
Gold fell 0.25% to $2,372.28 an ounce, away from an all-time high of $2,449.89 hit on Monday, as the prospect of higher U.S. interest rates for a long time took some of the luster off the metal.
