Market update

Cointree Crypto Market Update - May 22nd 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$105,165, moving +10.06% at the time of writing. Meanwhile, Ethereum ends at AU$5,674 moving +26.99% week-on-week. On the Altcoin side, Solana +20.88%, Cardano +11.11%, and Pepe +23.17%.

🗞 What’s happening in the news?

Ethereum Price Skyrockets Amid Spot ETF Rumors

Ethereum's price surged to a remarkable $5,600. This spike was fueled by the growing optimism surrounding the potential approval of a spot Ethereum Exchange-Traded Fund (ETF). Senior analyst Eric Balchunas from Bloomberg notably increased the approval odds from 25% to 75%, driving Ethereum’s price up by over 18% on May 20.

To put this into perspective, Ethereum essentially added Solana’s entire market cap in just one day. This surge highlights the profound impact that regulatory decisions can have on the crypto market. According to Geraci, there's a possibility that the SEC might approve the exchange rule changes separately from the fund’s registration, potentially extending the review period beyond the May 23 deadline for VanEck’s Ethereum spot ETF request.

Tornado Cash Verdict: A Wake-Up Call for Crypto Developers

The recent 5 year conviction of Tornado Cash developer Alexey Pertsev has sent unease through the software development crypto community. Andrew Balthazor, a litigator with Holland and Knight, noted, "Mr. Pertsev’s conviction reinforces the views of several governments that software developers who make their software available to the public will be held liable for the foreseeable consequences of the public’s use of that software."

This verdict has significant implications for blockchain developers, highlighting a shift from the traditional view where developers were considered neutral creators of tools. It raises important questions about the extent of liability and responsibility within the crypto industry.

Gala Games Recovers Ethereum After Massive Exploit

Gala Games experienced a major breach earlier this week when an attacker exploited the platform, minting and stealing 5 billion GALA tokens worth $240 million. However, unexpectedly, the attacker returned approximately 5,913 ETH (about $22 million) gained from selling some of the tokens.

Eric "Benefactor" Schiermeyer, CEO of Gala Games, mentioned that the firm might "buy and burn" the GALA tokens using the recovered ETH to potentially drive up the token’s price after the dip. Gala is working with authorities to bring the attacker to justice and has implemented countermeasures to prevent future exploits. Despite the attack, Gala Games remains committed to securing its platform and restoring investor confidence.

Bitcoin ETF Daily Inflow and BTC Price Correlation

Recent data from Farside Investors indicates significant daily inflows into Bitcoin ETFs, with notable movements such as $66.4 million on May 20 and $25.8 million on May 21. These inflows typically influence BTC's price, suggesting potential price movements follow ETF inflows and outflows. Detailed data found here.

📖 What we’ve been reading

‘Trader turns $2.2K of SOL into $2.26M in 8 hours with new memecoin'

“The trader made an over 993x gain on their initial investment, spurring insider trading allegations.”

'Donald Trump says his campaign will accept crypto'

“Facing several criminal cases, the presumptive Republican Party nominee for U.S. President is expected to face off against President Joe Biden in November 2024.”

'Fidelity removing staking rewards from prospective Ethereum ETF'

“Fidelity filed an amended S-1 registration statement with the SEC for its prospective Ethereum ETF ahead of upcoming deadlines for such funds."

KlimaDAO Japan to launch carbon credit marketplace with Progmat

“KlimaDAO and the Japanese stablecoin issuer may eventually trade carbon credits internationally.”

Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.