Hotcoin Research | Market Insights: April 29th - May 5th, 2024

Cryptocurrency Market Performance

The total market value of cryptocurrencies is 12.4 trillion, with BTC accounting for 53.27%.

Mainly affected by the continuous outflow of ETFs, the market entered a rapid decline phase from April 30th, reaching a temporary low point on May 1st-2nd, with BTC falling below $57,000 and ETH falling below $2,900. Since March this year, the "Bitcoin Rainbow Chart" has entered the "consider buying" zone for the first time. After May 3rd, the market has shown some recovery. Over the weekend, BTC has risen to over $63,000. During the decline, altcoins experienced significant declines. During the market recovery period, MEME rebounded quickly, with DEGEN, DOGE, WIF, BOME, and POPCAT among the top gainers. The "Fear & Greed Index" showed "neutral" for 3 days and "greedy" for 4 days this week.

Stay Informed Now

Review of Major Events of the Week

Bernstein report: The slowdown in Bitcoin ETF fund inflows is a short-term pause, not the beginning of a negative trend;
Ant S19, Shenma M30S+, and other series of mining machines have reached the shutdown coin price;
On the first day of listing, 6 Bitcoin and Ethereum spot ETFs in Hong Kong had a total trading volume of approximately 87.58 million Hong Kong dollars;
AnimeCoin: Azuki, Elementals, and Beanz NFT holders can participate in Gacha Grab to collect points;
Eigen Foundation: Pendle or other DeFi contract users will not be penalized in the airdrop distribution, and the 2nd season will consider users who participated after the snapshot on March 15;
On May 1st, according to Coinglass data, the entire network liquidated $325 million in the past 24 hours, with long positions liquidating $265 million and short positions liquidating $60.0835 million;
On May 1st, according to reporter @nikhileshde's on-site report, CZ was ultimately sentenced to 4 months in prison;
Celsius Network destroyed 652 million CEL tokens it held. The destruction accounts for 94% of the total supply, valued at approximately $83.2 million at the current market price;
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 their funds themselves;
Coinbase's first-quarter revenue increased by 73% quarter-on-quarter to $16 billion, with a net profit of $1.18 billion;
On May 4th, Uniswap Labs announced a partnership with Robinhood, allowing users to purchase cryptocurrencies using debit cards, bank transfers, or directly from the Robinhood balance in the Uniswap mobile app.

Macroeconomic

On May 2nd, the Federal Reserve maintained the benchmark interest rate at 5.25%-5.50% for the sixth consecutive time, in line with market expectations;
On May 5th, according to data from the official website of the Federal Reserve, as of April 30th, the Federal Reserve reduced its balance sheet by $77 billion in April, and its balance sheet size has now dropped to below $7.4 trillion, at $7.362 trillion;
A U.S. court is scheduled to hear arguments on the SEC's fraud case compensation plan against Terraform Labs and Do Kwon on May 22nd.

ETF

According to statistics, from April 29th to May 3rd, there was a net outflow of $434 million in Bitcoin spot ETFs.

As of May 3rd, GBTC had a total outflow of $17.462 billion.

The total outflow of Bitcoin spot ETFs is $11.567 billion. (A decrease from the total amount last week)

Looking Ahead

Upcoming Events

The Bitcoin Asia 2024 conference will be held in Hong Kong from May 9th to 10th, with participants including Bitcoin ecosystem projects, investment institutions, and Hong Kong Bitcoin spot ETF issuers.

Project Progress

Horizen will undergo a network upgrade at block height 1,554,150 (expected on May 6th at 11:00), and Binance is expected to temporarily suspend Horizen (ZEN) token deposit and withdrawal services at 10:00 on May 6th to support its network upgrade;
Gitcoin announced that the 20th round of donation activities will continue until May 7th, focusing on funding open-source software (OSS) projects in the Ethereum ecosystem. Out of a total of $1.4 million in matching funds, $1 million will be specifically allocated to four major OSS categories, including hackathon alumni, decentralized applications and applications, developer tools and libraries, and Web3 infrastructure; nearly $500,000 will be allocated to five independent community rounds;
The submission phase of the 6th season of the TRON hackathon jointly organized by HTX DAO, BitTorrent Chain, and JustLend DAO will continue until May 7th, with a total prize pool of $650,000 divided into five tracks: Web3, Artistry, DeFi, Builder, and Integration;
The Katla testnet of Taiko, an Ethereum Layer 2 network based on zkRollup, will be discontinued on May 10th, and the latest testnet Hekla under EIP-4844 has been made available to the public;
The official website of Binance's Russian business buyer CommEx will be closed at 18:00 on May 10th. Binance announced its complete exit from the Russian market in September last year, and its related business will be sold to CommEX. Zhao Changpeng has stated that Binance and CommEx have only a cooperative relationship, and he is not the ultimate beneficiary of CommEx.

Token Unlocking

Galxe (GAL) will unlock approximately 5.18 million tokens worth about $23.5 million, accounting for 5.76% of the circulation, on May 5th at 8:00.

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Hotcoin Research is the research department of Hotcoin. The team is committed to providing objective, independent, and comprehensive analysis, aiming to become an authoritative insight platform in the cryptocurrency field. Analysts will regularly publish insightful articles: dissecting industry insights, in-depth analysis of potential projects in popular tracks, tutorials on playing WEB3, etc., striving to show users the most friendly and authentic WEB3.

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