Despite some volatility in price, bitcoin has risen 7% in the past seven days, trading in a range of between $27,000 and $30,000. The world’s largest cryptocurrency by market value rose 1.2% over the last 24 hours to $29,307. Some analysts say instability in traditional banks has helped bitcoin, which is seen as an alternative to traditional finance. One troubled bank is San Francisco-based First Republic Bank (FRC), whose shares dropped 50% on Tuesday after it revealed its deposits fell by $100 billion in the first quarter. That comes as the broader economy is slowing down. On Thursday, the Commerce Department said the U.S. economy grew at a 1.1% annualized rate in the first quarter, below analysts’ estimates of 1.9%.
Bitcoin’s weekly chart
The European Central Bank wants its centralized-financial settlement systems to better interact with distributed ledger technology, as it seeks to keep pace with technological developments in financial markets. The ECB is pondering whether to issue a retail central bank digital currency for use by regular traders and citizens – but it also wants to be able to interact with innovations in wholesale financial markets, including those that use the technology that underpins cryptocurrencies.
Binance, the world’s largest crypto exchange by trading volume, is set to begin operations in Japan, according to a notice published on Friday. In November, Binance acquired regulated crypto exchange Sakura Exchange BitCoin. Existing services on SEBC will be terminated on May 31, and Binance will start a new service called “Binance Japan” after June. SEBC now supports 11 trading pairs. Listing tokens on exchanges in Japan requires vetting by the Japan Virtual Currency Exchange Association.
Market Insight: Holders’ ‘Green’ Salad Days
Blockchain data shows long-term holders of bitcoin are profitable for the first in almost a year. Historically, renewed profitability for long-term holders has presaged major market rallies.
The seven-day average of bitcoin’s long-term holder spent output profit ratio, or LTH-SOPR, has crossed above 1 for the first time since May 2022, according to data tracking firm Glassnode.
The SOPR is the ratio in U.S. dollar value of unspent transaction output, or UTXO, at its creation to the value at which the concerned wallet spends the UTXO on-chain. UTXO is a transaction output that hasn’t been utilized as an input in a new transaction. You can think of UTXOs as leftover change money in your pocket.
The chart shows bitcoin’s single-day price movements and the trajectory of the 50-day simple moving average of the cryptocurrency’s price since December.
Bitcoin has bounced up from the 50-day SMA this week, defying expectations for a deeper decline and keeping the uptrend intact.
“The bulls have managed to push the price above the 50-day moving average, which is pointing up from $27,000 on Monday to $27,400,” Alex Kuptsikevich, senior market analyst at FxPro, said in an email.
“At the end of March, the market bought bitcoin near this level. In other words, we have strong indications that the first cryptocurrency maintains its uptrend,” Kuptsikevich added.
– Omkar Godbole
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
