Bitcoin, Ether retreat; BNB leads winners on US court ruling, top 10 crypto mixed

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Bitcoin fell Wednesday morning in Asian trading, remaining stuck below the US$26,000 resistance line. Ether also lost ground, while the other top 10 unstable cryptocurrencies by market capitalization were mixed. Crypto exchange Binance’s BNB token scored the biggest gains in the top 10 after a US court rejected a request from financial regulators to freeze assets on the Binance.US exchange.

fear and greed

Bitcoin has fallen 0.38% in the past 24 hours to settle at US$25,835.15 at 7:00 a.m. in Hong Kong, losing 4.87% in the past week and repeatedly failing to break through. resistance at US$26,000 following lawsuits filed last week against US crypto trading platforms by the Securities and Exchange Commission (SEC).

Ether fell 0.49% to US$1,734.63, posting a 7.87%% loss for the week.

Bitcoin is struggling to rise above $26,000 due to fear in the crypto market and despite optimism in stocks, Alex Kuptsikevich, senior market analyst at online brokerage FxPro, said in comments. by e-mail.

The Fear & Greed index for the cryptocurrency is in fear territory at 45 (-2 points overnight), while the Fear & Greed index for the stock market is at 79 (extreme greed) , noted Kuptsikevich. Technically, to break the downtrend, Bitcoin must break above $27,000, and a drop below $26.5,000 is needed to confirm the downtrend. The second scenario seems more likely.

The other top 10 cryptocurrencies were mixed. Binances BNB token led the winners with a rise of 4.67% to $241.36, reducing its weekly loss to 14.41%.

BNB’s gains came after a U.S. federal judge on Tuesday denied the SEC’s request for a temporary restraining order that would have frozen the assets of Binance.US, the U.S. arm of the largest cryptocurrency exchange. in the world.

The judges’ decision allows Binance.US to continue operating while it negotiates with the SEC over its compliance with securities laws. Last week, the federal agency accused Binance.US of failing to register as a stock exchange and offering and selling unregistered securities. The SEC has also filed a complaint against the American exchange Coinbase. Both exchanges denied the allegations.

The story continues

According to CryptoQuant, bitcoin reserves on US crypto exchanges have fallen below 50% levels last seen in 2017. Assets are flocking to foreign exchanges due to regulatory uncertainty and recent SEC actions against Binance and Coinbase, Kuptsikevich said.

In other developments involving the SEC and crypto, the Ripples XRP token fell 0.87% to $0.5197 for a weekly decline of 2.25% after Tuesday’s long-awaited unveiling of so-called Hinman documents, named after former SEC Chief Financial Officer William Hinman.

Ripple Labs Inc. was sued by the SEC in December 2020, which alleged that XRP was offered and sold as an unregistered security. The company had requested the unsealing of documents which reveal that Hinman said that Bitcoin and Ether should not be classified as financial securities. The comments are a major argument between the SEC and Ripple as Ripple seeks to bolster its fair notice defense.

Ripples Chief Legal Officer Stuart Alderoty wrote on Twitter on Tuesday that the documents show: Hinman ignored multiple warnings that his speech contained fabricated analysis without legal basis and showed the SEC had flip-flopped and overstepped the bounds of its jurisdiction.

Unelected bureaucrats must faithfully enforce the law within their jurisdiction. They can’t as Hinman tried to create a new law, Alderoty said.

Total cryptocurrency market capitalization fell 0.12% to $1.054 trillion in the past 24 hours, while daily trading volume increased 10.62% to $33.75 billion, according to data from CoinMarketCap.

NFT market down

Indices are indirect measures of the performance of the global NFT market. They are operated by CryptoSlam, a sister company of Forkast.News under the Forkast.Labs umbrella.

In the non-fungible token (NFT) market, the Forkast 500 NFT index lost 1.76% to 2,919.17 within 24 hours of 7:30 a.m. in Hong Kong. The index is down 10.92% for the week.

The Forkast 500 NFT Index is now down almost 11% in seven days as we continue to find new lows, said Yehudah Petscher, NFT strategist at Forkast Labs, the parent company of Forkast.News.

Thinking about what it will take to recover seems quite daunting, as traders are unsure that a recovery even means existing assets will rebound in value. History tells us that its new projects in which a majority of investor funds will go.

Total NFT buy/sell transactions increased by 3.42% to $22.1 million, but sales on Ethereum, the leading blockchain by volume, fell by 3.94% in the last 24 hours to hit $12.87 million, according to data from CryptoSlam.

The Bitcoin network was the second largest NFT network in terms of buy/sell transactions, jumping 76.67% to $3.8 million in the past 24 hours.

Unique digital asset transactions of uncategorized ordinals on the Bitcoin network that are not identified as part of an established collection increased 69.42% to $1.39 million.

Bored Ape Yacht Club sales increased 25.14% to $1.3 million.

The art is still in vogue, with several Fidenzas selling in six figures recently and plenty of hype ahead of the Sothebys Holy Grail auctions to come this week, Petscher added. Fidenza refers to a collection of 999 NFTs created by artist Tyler Hobbs using computer algorithms.

Sothebys is auctioning the Grails digital art collection on Wednesday. The collection consists of NFT artwork owned by bankrupt crypto hedge fund Three Arrows Capital and its NFT buyout fund Starry Night Capital.

US Equity Futures Mixed

Federal Reserve Board Chairman Jerome Powell (left), Securities and Exchange Commission Chairman Gary Gensler (right) | Image: Getty Images

U.S. stock futures were mixed at 9:30 a.m. in Hong Kong after shares gained for the fourth consecutive day in regular trading on Tuesday. Dow Jones Industrial Average futures fell 0.24%, S&P 500 futures edged down 0.034% while Nasdaq futures gained 0.028%.

In regular Monday trading, the Dow Jones climbed 0.43%. The S&P 500 gained 0.69% and the Nasdaq Composite gained 0.83%.

Tuesday’s U.S. consumer price index (CPI) report showed inflation rose at an annual rate of 4% in May, from 4.9% in April. The CPI was the lowest annual inflation rate since March 2021, leaving investors hoping for a pause in the Federal Reserve’s series of interest rate hikes to curb price inflation.

It’s a golden number that will make investors happy as it puts further pressure on the Fed to suspend its interest rate hike program, said Nigel Green, founder and chief executive of the financial management group. deVere, in an emailed statement.

The US central bank is now 15 months and 10 straight rate hikes into its battle to calm inflation, but markets expect the latest CPI report to be enough to convince officials to press the pause button, Green said.

The US central bank is expected to leave interest rates unchanged at its meeting on Wednesday, according to TradingEconomics. US rates are between 5% and 5.25%, the highest since 2006 after ten consecutive hikes that began in March 2022 to slow the pace of inflation that hit 40-year highs at one point.

The CME FedWatch Tool predicts a 94.2% chance the Fed will leave rates unchanged at this week’s meeting, up from 80.4% the day before.

However, Green of the deVere Group warned of further hikes this year. Inflation is certainly down so far, but it’s very, very gradual. It remains sticky and far from the 2% target, largely due to a tight labor market.

Former Fed Vice Chairman Roger Ferguson also told CNBC last Friday that the central bank could raise rates later in the year, even if it skips this time.

(Updates with the actions section)

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