Macro Overview
- US CPI Y/Y: The US Consumer Price Index (CPI) year-over-year came in lower at 2.3% compared to the expected 2.4%, which is positive from a data perspective. Despite the favorable inflation numbers, the crypto market reacted negatively after the release, reflecting a mixed to bearish sentiment among investors and traders.The US Consumer Price Index (CPI) year-over-year came in lower at 2.3% compared to the expected 2.4%, which is positive from a data perspective. Despite the favorable inflation numbers, the crypto market reacted negatively after the release, reflecting a mixed to bearish sentiment among investors and traders.
- US PPI M/M: The US Producer Price Index (PPI) month-over-month came in significantly lower at -0.5% versus the expected 0.2%, which is positive for the market as it indicates easing inflationary pressures. The crypto market reaction was sideways to slightly positive following the data release.
Crypto Markets Overview
Top Tokens Update
- JPMorgan Completes First Public Blockchain Transaction via Ondo Finance: JPMorgan has successfully executed its first transaction on a public blockchain, settling tokenized U.S. Treasuries through Ondo Finance. The transaction leveraged Chainlink for interoperability between private and public networks, showcasing JPMorgan’s commitment to bridging traditional finance and decentralized finance (DeFi) through its Kinexys platform. Following the announcement, ONDO token saw a sharp price increase but later experienced a pullback.
- Ethereum Market Cap Surpasses Alibaba: Ethereum’s market cap hit $306.68B, surpassing Alibaba and Coca-Cola. London-based Abraxas Capital bought $500M worth of ETH, fueling the rally. The firm borrowed $240M USDT from Aave for accumulation. Institutional interest highlights ETH’s growing market dominance.
“Big Picture: Upcoming Weeks’ Key Economic Events”
| DATE | TIME | EVENT | USUAL EFFECT |
| May-22 | 6:00 PM | US Unemployment Claims | Actual’ greater than ‘Forecast’ is good for crypto |
Bitcoin Technical Analysis
Summary:
- The current sentiment around BTC is Neutral.
- Bitcoin remained choppy this week, trading near key resistance levels. This consolidation after a strong uptrend is normal, and the overall higher trend remains bullish with no signs of reversal yet.
- Key support levels to consider are around $101,500 and $99,600. On the upside, resistance level is at $104,500 and $106,300.
- It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
- For profit-taking, strategically selling near the outlined resistance levels/support levels is a recommended approach. Always exercise caution and implement sound risk management practices in trading endeavours.
Ethereum Technical Analysis
Summary:
- The current sentiment around ETH appears Bullish.
- Ethereum continues to outperform Bitcoin, having crossed a key level. It is expected to keep rising and maintain its outperformance. Our outlook for the coming days remains bullish.
- Significant support levels include $2090 and $1820, while resistance levels to watch are at $2820 and $3297.
- These levels play a crucial role in determining potential price movements. It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
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