As we head into the weekend and the world awaits the release of the U.S. government’s Nonfarm Payrolls report, anticipated to demonstrate 180,000 newly added jobs in May, the cryptocurrency market has reflected these expectations. Bitcoin has risen nearly 1%, crossing the $27,000 threshold while stocks continually push higher. In this surge, gold has also slightly climbed, with experts predicting the jobs report may push its value over $2,000.
Among this week’s top-performing digital assets are Quant Network (QNT) and The Graph (GRT), which have seen impressive gains of 16% and 14%, respectively, over the last seven days. This positive momentum indicates growing stability and potential for further growth in the crypto market.
On the institutional side, Coinbase Derivatives Exchange has announced its plan to offer Bitcoin and Ether tracked futures to institutional clients starting June 5. This move follows the increased institutional demand for crypto-assets, which was largely fueled by the issuance of Coinbase’s nano Bitcoin (BIT) and nano Ether (ETI) contracts last year. The BTI and ETI futures contracts, sized at one Bitcoin and ten Ether per contract, will be U.S. dollar-settled monthly and allow institutional traders to hedge market bets, express long-term market perspectives, or experiment with complex trading strategies.
Despite this positive news though, there is a looming concern regarding the shrinking stablecoin market. For example, Tether’s USDT has reached an all-time high market capitalization of $83.2 billion, recovering the $18 billion it lost after the implosion of the blockchain project Terra in May 2022. However, the overall stablecoin market has contracted significantly, down to $130 billion in May from almost $200 billion in early 2022.
There’s no doubt that recent market growth and the upcoming futures offerings from Coinbase highlight promising potential for the cryptocurrency industry. Yet, one cannot ignore the dark cloud that is the contracting stablecoin market, which may impact future growth sustainability. As such, investors and crypto enthusiasts must weigh both the positive and negative factors at play in order to make informed decisions.
In closing, the current growth in the cryptocurrency market, driven by Bitcoin crossing over $27,000 and the U.S. government’s upcoming Nonfarm Payrolls report, is a strong indicator of potential future successes. However, as with any investment, it is crucial for those who wish to participate in this market to remain vigilant and cautious, considering both the positive and negative aspects affecting the industry.
Source: Coindesk
