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Bitcoin stays largely range bound, although we saw some significant on-chain Stablecoin movement to exchanges. About $150mn of USDT was moved in. Moreover funding rates turned neutral and the entire market started to look bearish again. No clear direction yet again. However, we want to highlight two charts here - falling BTC transactions and falling weekly fee. In fact, both are falling steeply, just like 2017. This could mean a longer consolidation period followed by a bearish period unless we see some strong narrative build up demand / on-chain activity.
May 21’ proved to be yet another awesome month for ETH which was down just 2% vs a 35% crash for BTC. Total adjusted on-chain volume increased by 35.4% to a new ATH of $1.07trn as well. While BTC miner revenue continued to decreased by 15% to $1.45bn, ETH miner revenue increased by 42.8% to a new ATH of $2.35bn. This is the first time since June 2017 that ETH miner revenue > BTC miner revenue. Overall all this makes us much more bullish for ETH vs BTC and that ratio has been creeping up back gradually to 0.072.
Also, be watchful of the FinCEN event at the end of month (for final comments) and potentially, some real news on US CBDC. This is also a factor holding back traders from loading too much crypto, just yet. Cautious and careful please. Let’s hope for a better tomorrow.
DeFi is closely watching what new guidelines come from FinCEN and would they have to make KYC / AML compulsory. I wonder how would that even work. Decentralised Finance vs Centralised KYC. Business will have to move to other jurisdictions and thrive. If you ever wondered WHAT IS DEFI - Here is a great take by Front Month
SEC is back again at Tesla, with more vengeance it seems, this time. Accusing Tesla of breaching the settlement that they reached with Musk in 2018.
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