Recurring market commentary on what’s happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.
Market commentary
Good morning!
At the moment, Bitcoin (BTC) is trading at $30.5k (+4% in 7 days), Ethereum (ETH) is trading at $1.82k (+1% in 7 days), and the spread ETH/BTC is trading at 0.05945 (-1.45% in 7 days).
This week was an emotional rollercoaster ride. BTC rallied until mid-week to over 32k but then dropped sharply. ETH also has been trading 1% higher over the past week. There have been some positive news regarding the merge: on Tuesday, the ETH2 Beacon Chain launched Ropsten, the first out of three public testnets. The merge needs to be successful on all three testnets before the actual go-live can occur. It is expected that the merge on Ropsten will take place at end of next week.
Solana Network crashes
On Wednesday night, block validation for Solana halted completely, leading to a global outage of the network: no more transactions could be processed. The reason for the interruption was a bug in the verification of a Solana-specific concept called “durable nonces”, which enables transfers with human verification that take longer than 2 min (cold storage transfers). The Solana Foundation has temporarily disabled this functionality to restart the network. A fix for re-enabling cold storage transfers is currently being reviewed by Solana officials and the community. We are following the situation closely. SOL is now trading 5.9% lower over the week at only 39.8 USD.
Macroeconomic changes
This week we also saw volume picking up at certain instances, especially during the weekly lows. However, on the way up, buying interest quickly faded and it seems that crypto investors are still not fully convinced that we have seen the final lows of the current bear market.
On the macro side, there were some positive news from China, where cities are reopening and restrictions in Shanghai are being lifted. Although this will help the Chinese economy recover, it is only a matter of time before we see new lockdowns if the zero Covid policy remains in place. While there are signs of a peak in inflation in the US, it is still accelerating in Europe: German Harmonized CPI for May surprised on the upside with 1.1% (MoM) vs. an expected 0.5%, and 8.7% (YoY) vs. an expected 8%. Very similar figures were published for Italy, Spain, and Switzerland.
Happy Trading!
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