Crypto markets have seen a solid week, adding $300 billion in market capitalisation.
Bitcoin specifically gained 10% and has broken back through $90,000, levels last seen in early March this year. The price is now nearing $95,000 writes Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro.
It’s interesting to see that even amidst the uncertainty with Trump’s tariffs, the back and forth between the US and China, the potential removal of Jerome Powell as Federal Reserve Chairman, that bitcoin has bounced back whereas traditional markets still remain under pressure.
Part of the reason for the recovery could actually be due to the US-China trade uncertainty and potential US recession risks, as well as the US dollar weakening.
Bitcoin is usually closely correlated with US markets, particularly technology stocks. However in recent weeks, since ‘Liberation Day’, this correlation has been decreasing and bitcoin has seen its correlation with gold, a highly regarded safe-haven asset, increase.
Net spot ETF inflows, which are a barometer of institutional interest in bitcoin, have ramped up. Tuesday and Wednesday last week saw the 8th and 7th largest days for net inflows into the spot bitcoin ETFs since launching, $912.7 million and $917 million respectively.
With gold at record highs, could investors also be seeing bitcoin, dubbed as ‘digital-gold’ due to its similar scarcity characteristics, as a potential safe haven or alternative asset to invest in if economic uncertainties continue on?
UPCOMING THIS WEEK
More inflation data from the US is due out this week in the form of PCE Personal Consumption Expenditures index data.
PCE is the Federal Reserve’s preferred measure of inflation. Traders and investors will be closely watching this figure and how the data could affect the Fed’s interest rate decision for its upcoming meeting on May 7th.
Advanced GDP, Manufacturing PMI, non-farm payroll and unemployment rate data will also be released this week giving further insight into the current shape of the US economy.
BIGGEST MOVERS
$TRUMP was the biggest mover in crypto markets this week as it was announced that President Trump is set to host a private dinner for the top 220 holders of the $TRUMP memecoin at his private members-only club in Washington DC on May 22nd.
$TRUMP rallied 70% on the back of the announcement, however the price, currently at $15.21, is still far off the $77 high seen when the coin launched back in January this year.
$SUI was another big mover this week, up 64%, after Grayscale introduced the Sui Trust to allow accredited investors in traditional finance to gain exposure to the Sui cryptoasset.
Reports circulating on ‘X’ last week also indicate that crypto exchange-traded products provider 21Shares had earlier this year registered a Sui legal trust entity in Delaware, US indicating potential plans to launch a Sui spot ETF.
EYE-CATCHING STORIES
Jack Mallers, Tether and SoftBank Group launch Twenty One
Strike CEO and bitcoin advocate Jack Mallers along with Tether and Softbank Group last week announced the launch of Twenty One, a new venture to buy and accumulate bitcoin.
The entity is planning to go public via a SPAC merger with Cantor Equity Partners (CEP) and list under the ticker symbol XXI.
The new venture will seek to replicate the success of other bitcoin treasury companies such as Microstrategy, which has seen its own market value surge to new all-time highs since beginning to buy and hold bitcoin in August 2020.
At closing of the merger Twenty One expects to hold over 42,000 bitcoin which would make it the third-largest publicly listed company holding bitcoin.
_
