Crypto Recovery Mode | Without a bank

Bullish reversal. Crypto assets rallied to secure a safe green week as TradFi stock indices hit new all-time highs! What happened in the markets this week?

BTC retested $60,000 last weekend but has since rebounded, gaining nearly 8% on Wednesday after US Consumer Price Index (CPI) inflation for April was in line with forecasts. analyst expectations.

Inflation continues to exceed the US Federal Reserve’s long-term 2% target, but Wednesday’s CPI reading marked the first decline in three months. The release of this series coincided with April retail sales and oil inventory data, which showed a decline in demand, perversely giving investors reason to be optimistic by increasing the likelihood of declines rate.

Although market participants continue to assume that future rate cuts are unequivocally bullish, as their decline lowers the risk-free rate and theoretically enhances the relative attractiveness of risky assets, it is important note that they are only one factor in the broader economic context. equation and that their arrival often coincides with conditions of maximum recession.

This week has been extremely volatile for many investors, leading to impressive squeezes in popular 2021 memestonk mania favorites GameStop and AMC (alongside other heavily shorted stocks and some commodities including silver , orange juice and cheese).

Back this time with a hedge fund participationGME and AMC had both surged 300% on Tuesday, but returned to orbit in the second half of the week after announcing major stock sales plans, erasing the bulls’ gains and shattering the enthusiasm of the retail participants.

Although the prices of many assets – both those listed above and stock indices – have seen erratic swings in recent weeks, implied volatility has been drained from the market, with the VIX index (a measure of the implied volatility of options over 30 days of the market). S&P 500) closing Friday at $11.99, just 1.5% above its 52-week low.

Record high stock prices and a sub-12 reading on the VIX suggest that market participants are completely devoid of fear, but it is worth keeping in mind that the VIX has a habit of bouncing sharply from support and does not has not traded below this level since January 2018. …

Source: Trading View

On Crypto Twitter, Ethereum was the topic of the day (of the week) as prominent figures took to the platform to express their opinions on the future trajectory of the ETH price ahead of the SEC’s first final ruling deadline for approve or deny spot ETH ETFs in May. 23.

The ETH/BTC ratio has been spewing throughout May, surpassing its multi-year low as traders continue to prepare for a seemingly inevitable denial next week.

Despite the overwhelmingly negative sentiment that has formed due to the lack of meaningful communication between the SEC and the proposed issuers, the SEC’s decision to approve trading of ETH ETF products based on commodity futures last October appears to have clarified ETH’s status as non-security and suggests that spot instruments will be approved.

If the SEC denies spot ETH ETFs, it is likely the agency will provide a rationale for why Ether is a crypto asset security, a clarification that could wreak havoc on broader alternative markets, given that consensus strongly expects a refusal, an unexpected situation. approval would be a shock to the markets and would likely send the price of ETH skyrocketing.

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