The downtrend in the crypto markets continued this week, with no signs of an imminent rebound as investors stay put.
BTC$ is trading at 28.9k, 3.7% lower over the past 7 days, while ETH$ is trading more than 13% lower at 1.75k. Ethereum’s underperformance comes as its Beacon Chain, which will introduce PoS to ETH, faced issues, and experienced a seven-block reorg. A reorg is a potentially high security risk and makes investors nervous that the merge might be delayed further.
Other layer 1 PoS cryptocurrencies suffered as well, with Solana trading more than 19% lower over the week, Avalanche 25%, and NEAR 17%. The relative weakness of all the altcoins pushed the market cap BTC dominance to 46.8%, the highest reading in 7 months.
Crypto and the stock markets decoupled this week. The S&P 500 is up 4% since last week’s close as the FED minutes show that they might not keep up the current pace of monetary tightening. Weak figures from the US housing markets, new homes sales MoM in April printed at 591k vs. the expected 750k, giving some indications that the US economy is cooling down. It also supports the view of a less hawkish FED for the rest of the year. The 10-year US yield is trading lower as well, and is currently at 2.74%.
In more positive news: Andreessen Horowitz recently announced a new fund for crypto and blockchain startups. The fund is set to dedicate $1.5 billion to seed investments, and $3 billion to venture investments.
Last, but not least, we recently added TRON to our list of supported blockchains available for trading and storage for all of our brokerage customers.
Feel free to reach out if you have any questions about trading possibilities or any coins!