Hotcoin Research | Market Insights: April 29, 2024 - May 5, 2024
Weekly Market OverviewCryptocurrency Market Performance
The total market capitalization of cryptocurrencies is $1.24 trillion, with BTC accounting for 53.27%.
Mainly affected by the continuous outflow of ETFs, the market entered a rapid decline phase starting April 30. From May 1 to 2, the market hit a temporary low, with BTC dropping below $57,000 and ETH falling below $2,900. Since March of this year, the "Bitcoin Rainbow Chart" has entered the "Consider Buying" zone for the first time. After May 3, the market saw some recovery, with BTC rebounding to above $63,000 over the weekend. During the decline, altcoins suffered significant losses, but during the recovery phase, MEME tokens rebounded quickly, with DEGEN, DOGE, WIF, BOME, and POPCAT leading the gains. This week, the "Fear & Greed Index" showed "Neutral" for three days and "Greed" for four days.
Understanding the Present
Weekly Major Events
Bernstein Report: The slowdown in Bitcoin ETF inflows is a short-term pause and not the beginning of a negative trend;
Antminer S19, Shenua M30S+, and other series of mining machines have all reached shutdown coin prices;
On the first day of listing, six Bitcoin and Ethereum spot ETFs in Hong Kong traded approximately HKD 87.58 million;
AnimeCoin: Azuki, Elementals, and Beanz NFT holders can participate in Gacha Grab to earn points for collecting Gachapons;
Eigen Foundation: Pendle or other DeFi contract users will not be penalized in the airdrop distribution; the second season will consider users participating after the March 15 snapshot;
On May 1, according to Coinglass data, the total liquidation across the network in the past 24 hours was $325 million, with long positions liquidated at $265 million and short positions at $60.08 million;
On May 1, according to reporter @nikhileshde's on-site report, CZ was ultimately sentenced to four months in prison;
Celsius Network burned its holdings of 652.2 million CEL tokens. The amount burned accounts for 94% of the total supply, valued at approximately $83.2 million at current market prices;
MicroStrategy is building a decentralized identity protocol based on the Ordinals protocol;
Aztec Labs has relinquished ownership of zk.money, and users need to withdraw on their own;
Coinbase's Q1 revenue increased by 73% quarter-over-quarter to $1.6 billion, with a net profit of $1.18 billion;
On May 4, Uniswap Labs announced a partnership with Robinhood, allowing users to purchase cryptocurrencies using debit cards, bank transfers, or directly from their Robinhood balance within the Uniswap mobile app.
Macroeconomics
On May 2, the Federal Reserve kept the benchmark interest rate unchanged in the range of 5.25%-5.50% for the sixth consecutive time, in line with market expectations;
On May 5, according to data from the Federal Reserve's official website, as of April 30, the Fed achieved a balance sheet reduction of $77 billion in April, bringing its balance sheet size below $7.4 trillion to $7.362 trillion;
A U.S. court is scheduled to hear arguments on May 22 regarding the SEC's compensation plan in the fraud case against Terraform Labs and Do Kwon.
ETF
According to statistics: From April 29 to May 3, the net outflow of Bitcoin spot ETFs was $434 million.
As of May 3, GBTC had a total outflow of $17.462 billion.
The total for Bitcoin spot ETFs was $11.567 billion. (This is a decrease compared to last week's total.)
Foreseeing the Future
Upcoming Events
The Bitcoin Asia Conference 2024 will be held in Hong Kong from May 9 to 10, with attendance from Bitcoin ecosystem projects, investment institutions, and issuers of Bitcoin spot ETFs in Hong Kong.
Project Progress
Horizen will undergo a network upgrade at block height 1,554,150 (expected on May 6 at 11:00). Binance is expected to suspend token deposits and withdrawals for Horizen (ZEN) at 10:00 Beijing time on May 6 to support the network upgrade;
Gitcoin announced that the 20th round of donation activities will continue until May 7. This round, GG20, will focus on funding open-source software (OSS) projects in the Ethereum ecosystem. Of the total matching funds of $1.4 million, $1 million will be specifically allocated to four major OSS categories, including hackathon alumni, decentralized applications, developer tools and libraries, and Web3 infrastructure; nearly $500,000 will be allocated to five community independent rounds;
The sixth season of the TRON Hackathon, co-hosted by TRON, HTX DAO, BitTorrent Chain, and JustLend DAO, will have its submission phase continue until May 7, with a total prize pool of $650,000, divided into five tracks: Web3, Artistry, DeFi, Builder, and Integration;
The Katla testnet of the Ethereum Layer 2 network Taiko, based on zkRollup, will be deactivated on May 10, and the latest testnet Hekla of EIP-4844 has been opened to the public;
The official website of CommEx, the buyer of Binance's Russian business, will close at 18:00 on May 10. Binance announced its complete exit from the Russian market last September, and related businesses will be sold to CommEX. Zhao Changpeng has stated that Binance and CommEx only have a cooperative relationship, and he is not the ultimate beneficiary of CommEx.
Token Unlocking
Galxe (GAL) will unlock approximately 5.18 million tokens on May 5 at 8:00, valued at about $23.5 million, accounting for 5.76% of the circulating supply.
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