Hotcoin Research | Market Insights: May 6, 2024 - May 12, 2024

Cryptocurrency Market Performance

The total market capitalization of cryptocurrencies is $1.24 trillion, with BTC accounting for 53.35%.

This week's market showed a trend of rising first and then falling, with the market continuously declining from May 6 to 9, and a fluctuating market over the weekend. The net inflow of Bitcoin spot ETFs this week was $112.62 million, including: inflow from U.S. ETFs: $116.8 million, outflow from Hong Kong ETFs: $4.18 million.

This week's "Fear & Greed Index": showed "Neutral" for 2 days, "Greed" for 5 days.

The "Pi Cycle Top Indicator" shows that the recent price of BTC is close to the 111DMA, indicating that this may be a potential short-term low.

Historically, this indicator has effectively selected the timing of market cycle peaks within 3 days. In the past three market cycles, when the 111DMA moves upward and crosses the 350DMA x 2, we have seen it align with Bitcoin's peak prices. Its accuracy has been high over the past 7 years.

This week, the altcoin CEL performed well, rising from $0.37 at the beginning of the week to $0.88 over the weekend, due to the fact that on May 1, Celsius Network burned 652.2 million CEL it held. The amount burned accounted for 94% of the total supply.

Understanding Now

Review of Major Events of the Week

1. Tiger Brokers launched virtual asset trading services;

2. On May 5, Ethereum's daily burn volume hit a new low for the year;

3. On May 6, six Bitcoin and Ethereum spot ETFs in Hong Kong traded approximately HKD 60.41 million;

4. Puffer Finance mainnet launched on May 8;

5. Binance CEO: The executive detained in Nigeria is innocent and must be released;

6. The Ethereum Foundation transferred 1,000 ETH to a multi-signature contract address, possibly for funding purposes;

7. Zeta Markets will airdrop 1% of the total token supply to Solana ecosystem projects like Jupiter;

8. Binance implemented strict market monitoring procedures, firmly intolerant of any market abuse, having delisted nearly 355,000 users over the past three years, involving trading volumes exceeding $2.5 trillion;

9. Bitcoin mining difficulty decreased by 5.6%, the largest drop since December 2022;

10. The EOS Network Foundation plans to deploy a new EOS token economic model to the mainnet by the end of May and launch EOS staking rewards by the end of June;

11. Ethena released its 2024 roadmap, aiming to reshape and promote the integration of DeFi, CeFi, and TradFi;

12. EIGEN airdrop claims and staking will open at 1 AM on May 11;

13. Greeks.live: The cryptocurrency market was relatively weak this week, with trading volume continuing to decline;

14. Federal Reserve's Bostic: Although the timing is uncertain, he still believes the Fed will cut rates once this year.

Macroeconomics

1. The U.S. SEC postponed its decision on Invesco Galaxy's Ethereum spot ETF application;

2. Cryptocurrency wallet provider Exodus delayed its listing on NYSE American due to SEC scrutiny;

3. CME Fed Watch: The probability of the Fed maintaining interest rates in June is 91.1%;

4. The Fed reduced its balance sheet by $77 billion in April, bringing the total asset size below $7.4 trillion.

ETF

According to statistics, from May 6 to May 10,

The net inflow of U.S. Bitcoin spot ETFs was $116.8 million. As of May 6, GBTC had a total outflow of $17.633 billion, with total holdings of $11.684 billion.

The net outflow of Hong Kong Bitcoin spot ETFs was $4.18 million, with total holdings of $262 million.

Foreseeing the Future

Upcoming Events

1. Consensus 2024 will be held from May 29 to May 31, hosted by CoinDesk, aiming to gather developers, investors, and founders to address industry challenges;

2. Bitcoin Seoul 2024 will take place from May 29 to 31 in Seoul, South Korea, bringing together the brightest minds in policy, finance, human rights, and technology, focusing on Bitcoin.

Project Progress

1. BounceBit will launch its mainnet and distribute BB token airdrops on May 13, with airdrops to be distributed on the BounceBit Chain, completed before trading on Binance;

2. A Dutch judge will rule on May 14 regarding Tornado Cash developer Alexey Pertsev, with Dutch prosecutors seeking a 64-month prison sentence for him;

3. The snapshot time for the BNB Chain Q2 airdrop alliance plan is set for 8:00 AM Beijing time on May 15. Users must stake at least 1 BNB token to BNB Smart Chain or use the staking migration tool to transfer BNB tokens from Beacon Chain to BSC to qualify for Level 1; staking at least 5 BNB tokens to BSC will qualify for Level 2;

4. Bitcoin Cash is expected to undergo a network upgrade on May 15 at 20:00. Binance plans to suspend Bitcoin Cash (BCH) token deposits and withdrawals at 19:00 Beijing time on May 15 to support the network upgrade;

5. FTX Digital emails indicate that, according to the Company Liquidation Rules (2012) Order No. 16 and the approval order issued by the Bahamas Supreme Court on January 22, 2024, the company's customer and non-customer creditors must send their names, contact information, complete details of their claims or debts, and the names and addresses of their representatives (if any) to the company's joint official liquidators (JOL) by May 15, 2024, and submit through the JOL's website, otherwise they will not be able to receive asset distributions;

6. The Starknet Foundation's Propulsion program is opening applications for the first 20 games until May 17, to support mature teams launching games on the Starknet mainnet or application chain, planning to match network fees incurred by games and credit them to the game developers' accounts, with each game eligible for up to $1 million in rewards within a year;

7. A Nigerian court has postponed the tax evasion hearing for Binance executives to May 17.

Token Unlocking

1. Moonbeam (GLMR) will unlock approximately 3.04 million tokens on May 11 at 8:00, valued at about $920,000, accounting for 0.35% of the circulating supply;

2. Aptos (APT) will unlock approximately 11.31 million tokens on May 13 at 2:00, valued at about $10.3 million, accounting for 2.64% of the circulating supply.

Hotcoin is a licensed CEX with 6 million users, aiming to provide decentralized, secure, and reliable digital currency trading and asset management services to global users.

Hotcoin Research is the research department under Hotcoin. The team is dedicated to providing objective, independent, and comprehensive analysis, aiming to become an authoritative insight platform in the cryptocurrency field. Analysts regularly publish insightful articles: analyzing industry insights, deeply analyzing potential projects in popular sectors, and tutorials on making money in WEB3, striving to present the most user-friendly and authentic WEB3 experience.