Market picture
The crypto market cap rose 4.5% over 24 hours to $2.56 trillion, roughly where it was a week ago, with an active rally over the last three days.
Bitcoin is up 4.7%, and Ethereum is up 4.3% in 24 hours. Their momentum has encouraged even more robust growth in smaller coins. Dogecoin is up 15% in 24 hours and 100% in 30 days, Solana is up +9.5% and 86%, and BNB remains stronger at +6.7% and 54% respectively.
Bitcoin rose to $67.1K, a third day of strength from an area near the 61.8% Fibonacci retracement of the rise from the January lows to the March highs. The correction from the peak has removed overbought conditions on a daily timeframe, making room for growth and easing the psychological impact on potential buyers as many are more comfortable buying the asset after a drawdown.
The fundamental development of this pattern suggests further growth towards the previous high of $73.7K. If it is successfully breached, the next target for growth could be $95.5K.
News background
Despite the recent correction in bitcoin, the asset is in “overbought territory”, notes JPMorgan. As the halving approaches, profit-taking is likely to continue.
Retail traders have temporarily lost interest in bitcoin, according to Zaye Capital Markets. With the halving approaching, BTC could see a major correction and fall below $50K.
BlackRock’s clients have little interest in investing in cryptocurrencies, except for Bitcoin and Ethereum, the firm said.
The SEC delayed a decision on Grayscale’s Ethereum futures ETF until 30 May, citing the need for more time to review it.
US authorities have filed claims against FTX. The US government’s claim on the collapsed exchange’s assets is expected to be between $3bn and $5bn.
Ripple CEO Brad Garlinghouse suggested that the SEC will fail in its attempts to classify Ethereum as a security.
Solana will surpass Ethereum in the number of consumer decentralised applications (dapps), predicts Matty Taylor, co-founder of Colosseum and former head of growth at the Solana Foundation.
