Bitcoin
Bitcoin price fell 2.5% in the week from April 28 to May 5. Almost all of the decline occurred in the first three days.. BTC went up on Tuesday, but failed to recover its losses of the beginning of the week.
The press conference of the Federal Open Market Committee (FOMC) announced a 0.25-point hike in the benchmark rate..
Now the bar is in the range of 5-5.25%. It should be noted that Fed Chairman Jerome Powell this time refrained from the rhetoric about the need to continue to raise the rate.
What was supposed to push cryptocurrency prices up. There was growth, but not cosmic growth..
It seems that the Fed’s actions coincided with the expectations of most investors, and those expectations have already been factored into the market price.
In addition, the U.S. banking crisis continues. No sooner had the turmoil surrounding California’s
First Republic Bank
was shut down, another credit institution was in trouble.. This time, Beverly Hills-based PacWest Bancorp caught the eye. In the period from 2 to 4 May, its shares fell by almost 65%.
The bank said it is reviewing its current situation, considering options such as raising capital or
or even selling the business.Problems have also arisen at the Arizona bank Western Alliance.
Its shares fell by almost 50% between May 2 and May 4. It was reported that the bank was also considering a sale, but the information was subsequently representatives of the Western Alliance itself denied the information.
It would seem that the problems of banks should push the crypto market up, as it was, for example, in March.
At that time, three large credit institutions (Silvergate Bank, Sillicon Valley Bank and Signature Bank) collapsed. However, this time there was no bull rally.. Why so?
Charles Storry, head of the crypto platform Phuture Charles Storry, the actions of the regulator discourage many big investors, and until their confidence is restored, no price jumps should not be expected.
And according to Michael Safai, managing partner of algorithmic digital asset trading platform Dexterity Capital, the problem lies in the lack of liquidity that arose after the collapse of FTX in late 2022.
The Block reported on the decline in cryptocurrency trading after the introduction Binance exchange commission, which could have a deterrent effect.
In terms of technical analysis, there has been some lull among bitcoin investors without a clear trend. The resistance level is around $30 000 and the support level is $27 700.
Fear and Greed Index down three points from a week ago. Now it is 61. This is still indicative
the predominance of greed over fear.
Ethereum
Ethereum rose only 0.54% in the past week. The second most capitalized cryptocurrency in the world has a pattern of alternating sessions: one day up – one day down, two days up – two days down, one day up – one day down.
In fact, that explains the very low volatility over the past seven days.
The last two weeks the price of ether did not make sharp jumps. But that should change soon.. At least, that’s the view experts of analytical platform Santiment:
“Number of active deposits in ETH at eight-month high. Having studied the most likely cause, we can state that it most likely indicates an increase in volatility of ether.
It will be akin to the spikes seen during Merge and the FTX collapse.
The Etherium platform itself disclosed information about the vulnerabilities that were identified as part of the Ethereum Bug Bounty.
A total of nine faults were announced: Erigon, Go Ethereum, Lodestar, Nethermind, Lighthouse, Prysm, Teku, Besu, Nimbus. No one could claim the maximum prize of $250,000 for finding the vulnerability.
The biggest win was a $50,000 prize for a userscio for finding bugs in the Lighthouse consensus client.
In terms of technical analysis, ether is still in sideways movement. The nearest resistance level is $1,962.7, the nearest support level is $1,787..
A positive signal for ETH holders is the fact that the coin is trading above both the 50-day moving average (marked in blue) and the 200-day moving average (marked in yellow):
Cardano
Cardano’s ADA token lost more than BTC between April 28 and May 5. The decrease was about 4%. Since April 16, Cardano was able to close only one session, April 22, up more than 3%.
All other days the price either fell or rose weaker.
The big news for Cardano was the launch of Hydra s main network update. The update is a Layer 2 protocol that will work on top of the existing blockchain.
Hydra is designed to increase transaction processing speed and overall efficiency.
This is achieved by creating a large number of “heads”, each of which can process a subnet of transactions independently..
Such an initiative allows for parallel processing, greatly increasing the overall size of the network without compromising security or decentralization.
Another key feature of Hydra is horizontal scaling, which means that the protocol will handle more transactions as the number of users on the network increases;
Investors, though, have ignored Cardano’s update. The price is down 0.26% on Friday, May 5.
From the technical analysis point of view, the support and resistance levels have not changed since last week and are $0.372 and $0.42, respectively.
So, there has been a lull in the cryptocurrency market. There were no strong movements during the week, not in bitcoin, ether or Cardano.
The U.S. Federal Reserve meeting, ongoing bank problems and updates failed to have any visible impact on the quotes.
This material and the information in it does not constitute individual or other investment advice.
The views expressed herein are those of the author, research portals and experts and do not necessarily reflect the views of the publisher.