News recap: 77% of the total BTC supply is profitable

Crypto market in numbers

Between 28th and 30th April, the cryptocurrency market cap stood in the range of $1.19-$1.22 trillion, according to CoinMarketCap. On 1st May, the indicator fell by 5.5% to $1.15 trillion. Following the Fed’s meeting, the market cap increased by 5.62% to $1.22 trillion, only to fall by 7.62% soon. Since 8th May, the indicator has been fixed in the $1.13-$1.16 trillion range.

Trading activity dropped considerably. Between 28th and 30th April, average daily trading volumes fell by 58% to $23 billion. However, in early May, the indicator grew to the range of $30-$50 billion.

The Cryptocurrency Fear & Greed Index moved down to the “Neutral” zone. Between 28th April and 8th May, the indicator remained above 60 points, but since 9th May, the market sentiment worsened, with the index correcting to 51 points. On 11th May, it stood at 52 points.

The volatility of cryptocurrencies has mostly remained unchanged. Between 28th April and 11th May, Bitcoin’s 30-day volatility index fell by 5.6%, from 1.77% to 1.67%. The same indicator for Ethereum fell by 0.9%, from 2.21% to 2.19%.

After the Fed raised its interest rate another 0.25%, the crypto market experienced local selling pressure. Also, market participants were waiting for the US inflation report. The annual inflation rate eventually slowed down to 4.9%, slightly less than expectations. The market started betting that the Federal Reserve will pause increasing the rate in June.

However, on the very same day, 10th May, a fake alert circulated, claiming that the US government sold 9,819 BTC. This activated trading algorithms, and then some traders also sold assets. It is worth noting that altcoins were under more pressure than BTC. Considering low volatility, we should expect sharp price movements in the near future.

Gainers (28th April – 10th May)

Losers (28th April – 10th May)

Easily track gainers and losers within the Simple trade section on EXMO.com. Check real-time updates in the last 24 hours, week and month.

Most traded coins (28th April – 10th May)

Top crypto market driving factors

Overall crypto market

▲ 28.04.2023 – Hong Kong authorities urged banks to provide services to licensed virtual-asset firms.

▲ 28.04.2023 – Santiment noted an increase in negative sentiments around the crypto market. Historically, this is a bullish signal.

▲ 28.04.2023 – Visa has unveiled a blockchain-backed CBDC project for Brazilian farmers as part of efforts to explore new crypto use cases for the Brazilian economy.

▲ 03.05.2023 – Robert Francis Kennedy Jr. criticised the SEC and FDIC for waging a “war against cryptocurrencies”, which led to a banking crisis in the country.

▼ 03.05.2023 – The Biden administration proposed to impose a 30% tax on the electricity used by cryptocurrency mining operations to minimise the industry’s impact on climate change.

▼ 03.05.2023 – The Federal Reserve raised its interest rate by 25 basis points to a range of 5%-5.25%.

▼ 05.05.2023 – CNBC: institutional investors lost interest in cryptocurrencies after a brutal crypto comedown in 2022.

▼ 05.05.2023 – Kaiko reports a decline in centralised exchange spot trading volumes in April 2023 after months of growth.

▼ 06.05.2023 – The US Justice Department is investigating whether Binance Holdings Ltd. was used illegally to let Russians skirt US sanctions.

▲ 08.05.2023 – China’s Supreme Court released guidelines stating that settling a debt using a small amount of digital assets would be considered legal if both parties agree.

▲ 09.05.2023 – PayPal’s crypto holdings increased by 56% in Q1 of 2023 to nearly $1 billion.

▲ 10.05.2023 – The annual consumer inflation in the US slowed to 4.9%, slightly below expectations of 5%.

Bitcoin (BTC)

▲ 02.05.2023 – MicroStrategy recorded a $461.2 million net income in the first quarter of 2023. The company also added 7,500 BTC to its balance sheet, raising its total holdings to 140,000.

▼ 02.05.2023 – Bitcoin whales’ activity is declining, while the number of BTC transactions exceeding $1 million has been trending down since late March 2023.

▼ 02.05.2023 – According to CryptoQuant, miners have started actively selling their BTC reserves since mid-April.

▲ 04.05.2023 – According to Santiment, bitcoin whales increased their holdings of the first cryptocurrency by 64,000 BTC in April.

▲ 04.05.2023 – Glassnode on-chain data showed that Bitcoin miners’ revenue spiked to historical levels.

▲ 05.05.2023 – According to Glassnode, about 77% of the total Bitcoin supply is now profitable.

▼ 08.05.2023 – Warren Buffett claimed that Bitcoin has no chance of becoming the world’s reserve currency, even amid the loss of public faith in the US dollar.

▲ 10.05.2023 – Santiment reports a sharp increase in BTC short positions, which was last observed before the start of the Bitcoin rally in mid-March.

▼ 11.05.2023 – According to Santiment, fake alerts that the US government address transferred 9,819 bitcoins have caused panic among traders, which made them sell their BTC. However, the crypto market is already recovering.

▲ 11.05.2023 – Bitcoin mining firm, Marathon Digital, mined a record 2,195 BTC over Q1 of 2023, a 41% increase from Q4 of 2022.

Ethereum (ETH)

▲ 28.04.2023 – The number of addresses holding 1,000 or more ETH increased by 380, representing a 5.7% rise.

▲ 02.05.2023 – There have been no inflation blocks on Ethereum for 19 consecutive days. This is mainly due to the high ETH gas price and active fee burning. The average ETH gas price stood at 43 Gwei over the last week.

▼ 02.05.2023 – Ethereum whales who hold between 1,000 and 10,000 ETH have sold more than 110,000 ETH in the past two weeks.

▲ 04.05.2023 – The median average transaction fee on the Ethereum network soared to its highest level since May 2022.

▼ 05.05.2023 – Santiment has recorded a sharp surge in depositing Ethereum on exchanges. The number of unique users sending the asset to the platforms hit an 8-month high on 3rd May 2023.

▲ 05.05.2023 – More than 33,000 ETH was burned as fees on the Ethereum network over the last week.

▼ 07.05.2023 – Ethereum Foundation and Vitalik Buterin move 15,000 ETH to an exchange.

▼ 09.05.2023 – According to Lookonchain, two whales panicked and sold 19,090 ETH after they found out that Ethereum Foundation dumped 15,000 ETH to a crypto exchange.

▲ 10.05.2023 – The number of ETH validators complying with US sanctions has decreased to 27%.

Cardano (ADA)

▲ 02.05.2023 – Transaction volumes on Cardano have been growing together with the total number of active wallets on the network.

▼ 02.05.2023 – Crypto whales are getting rid of ADA coins.

▲ 05.05.2023 – Cardano’s long-awaited scaling protocol, Hydra, went live on the mainnet.

Litecoin (LTC)

▲ 28.04.2023 – The social activity around Litecoin on Twitter is rapidly gaining momentum, as people are excited about the Litecoin halving, which will take place in August this year.

▲ 10.05.2023 – The number of daily Litecoin transactions has hit a record high, surging to over 570 000.

Sui (SUI)

▲ 03.05.2023 – Sui, a highly competitive Layer-1 blockchain, has launched its mainnet.

▲ 08.05.2023 – Mysten Labs has partnered with multiple gaming ecosystems to launch high-end Web3 games on the Layer-1 Sui blockchain.

EXMO news

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