Good morning, crypto enthusiasts! The market has been relatively quiet, with Bitcoin stable at around $27,300. While funding rates on Bitcoin and Ether perpetual futures remain positive, which is often an indication of sentiment, the calm market seems to translate to less bullish energy.
Both Bitcoin and Ether are currently trading below their 20-day moving averages. As CoinDesk markets analyst Glenn Williams Jr. pointed out, trading volumes will be crucial to keep an eye on, as they could either amplify or dampen the sentiment behind any directional move. According to Jeff Dorman, CIO at digital-asset manager Arca, bid/ask spreads have widened in the crypto market, particularly after some market makers exited the space. Dorman described the prices of most digital assets as being “stuck in a wind tunnel.”
In traditional finance, stock market activity appeared subdued due to uncertainty over whether U.S. lawmakers can agree on a plan to avoid a government default, as the Treasury’s borrowings inch closer to the official limit.
Despite the current quiet market, funding rates for Bitcoin and Ether perpetual futures remain positive. These rates can often indicate bullish or bearish sentiment, with the former represented by positive rates and the latter by negative ones. Bitcoin funding rates have been positive for 8 out of the last 10 trading days, while Ether rates have been positive for 7 out of the recent days, declining to zero three times but not dipping below zero since April 6.
Binance announced this week it will cease operations in Canada amidst the challenging regulatory environment. This news comes as Bitcoin traded above $27,000, recovering some of the ground lost after last week’s plunge.
In other noteworthy news, EY Global has launched an Ethereum-based platform for businesses to track their carbon emissions and carbon credit traceability. Dunleavy Investment Research crypto strategist Tom Dunleavy shared his market analysis, noting that Binance’s popularity, coupled with lower fees, has led to the highest weekly DEX volume on BNB Chain in a year.
Additionally, Polygon co-founder Sandeep Nailwal has started a Web3 Fellowship Program, investing $500,000 of his personal funds into a new cohort each year. In South Korea, crypto exchanges Upbit and Bithumb are under investigation for controversial transfers involving ex-lawmaker Kim Nam-kuk.
Lastly, bankrupt crypto lender Celsius has transferred $75 million of Ether to staking service Figment, marking one of the largest transfers of funds since filing for bankruptcy protection in July.
These recent developments underscore the ongoing challenges faced by the crypto industry in terms of regulation, as well as the potential benefits of emerging technologies like Ethereum-based platforms. It remains to be seen whether the quiet market will continue or if a surge in trading activity could shift the sentiment.
Source: Coindesk
