The crypto market has started the week in positive territory, with most cryptocurrencies trading in the green, although some have also registered marginal declines. Bitcoin (BTC) started the day with a marginal increase, trading around $105,490. The flagship currency faced a significant decline last week, plunging to a low of $100,424 before rebounding.
Meanwhile, Ethereum (ETH) fell below $2,500 as selling pressure intensified. The world’s second-largest cryptocurrency is down nearly 1%, trading at around $2,490. Ripple (XRP) and Solana (SOL) have bucked the bearish trend, up 2.39% and 0.50%.
Cardano (ADA) is also marginally up, while Dogecoin (DOGE) is down over 1%, trading around $0.181. Chainlink (LINK), Stellar (XLM), Litecoin (LTC), and Polkadot (DOT) also registered notable declines, while Toncoin (TON) and Hedera (HBAR) registered marginal increases.
Argentinian Authorities Rule Out Foul Play In President Javier Milei’s Crypto Promo
Argentina’s federal anti-corruption authority has ruled out foul play in President Javier Milei’s support of the Libra token. The anti-corruption office stated that Milei’s endorsement of the token was made in a personal capacity and did not use federal resources. The office, which operates under a government ministry, stated that Milei’s promotion of the token did not violate federal ethics laws governing public officials. However, a separate investigation remains ongoing.
President Milei had posted about the Libra token minutes after its launch, sending its value soaring. He also called it an endeavor to boost Argentine economic expansion by assisting startups and small enterprises with investments made possible through blockchain technology. However, the buzz around the token was short-lived as the token’s founders, who controlled 70% of the supply, liquidated their holdings. The selloff triggered a massive collapse, causing losses between $100 million and $250 million.
House Democrats Concerned About CLARITY Act
House Democrats on the House Financial Services Committee held a “minority day” hearing on Friday to discuss a pending crypto market structure bill and concerns about its wide-ranging implications for the US securities markets. The Committee’s Republican majority convened most hearings about the bill. The “minority day” hearing allows Democrats to highlight the perceived flaws of the proposed legislation. Democrat witnesses highlighted concerns about the knock-on effects of such a strategy, with Amanda Fischer, Policy Director at Better Markets stating during testimony that the bill’s “regulatory gaps will not be quarantined to crypto.”
Fischer stated that by carving crypto from US securities laws that have existed since the 1930s, the CLARITY Act would incentivize traditional financial institutions to shoehorn functions like capital raising onto blockchain networks to dodge regulation and lower costs. She highlighted comments by Robinhood CEO Vlad Tenev, who stated,
“The cost of running a crypto business is an order of magnitude lower. You don’t have to squint too hard to imagine a world where stocks are on blockchains.”
Fischer countered stating,
“He doesn't have to pay for customer protection, SEC exams, or SIPC insurance. Of course, it's cheaper.”
The panel also flagged the act’s two-tiered system for categorizing crypto assets. The bill classifies most crypto tokens as digital commodities, exempting them from SEC regulation. However, token issuers who want to engage in activities resembling a traditional securities offering can register as “mature blockchain systems” with the SEC, a process with more stringent compliance requirements.
Fischer argues that few token issuers will engage with a rigorous compliance process, given the CLARITY Act offers many loopholes for issuers.
“Crypto issuers will claim they're DeFi; claim that they're not offering investment contracts; claim that they're collectibles or meme coins; claim that they’re airdrops, or claim that they're subject to the [bill’s] grandfathering provision.”
Department Of Justice Files Civil Forfeiture Claim Seeking $7.7M In Crypto
The US Department of Justice has filed a civil forfeiture claim for over $7.7 million in crypto laundered by North Korean IT workers who gained employment with companies in the US using fraudulent means. The funds were seized as part of an operation against a North Korean plot to evade sanctions. Authorities had indicted a North Korean Foreign Trade Bank representative, Sim Hyon Sop, in connection with the operation.
According to the Department of Justice, North Korean IT workers used fraudulent identities to gain employment with US crypto firms. They then laundered their income through Sim, sending it to the regime in Pyongyang. The forfeiture complaint also states that North Korean IT workers had been deployed in several locations across the world, including China, Russia, and Laos. Sue J. Bai, the head of the DOJ’s National Security Division, stated,
“For years, North Korea has exploited global remote IT contracting and cryptocurrency ecosystems to evade U.S. sanctions and bankroll its weapons programs.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has made a muted start to the week, with the price marginally down. Despite subdued price action, BTC has maintained its position above $105,000. However, the flagship cryptocurrency risks a drop below $105,000, with the US-China trade talks setting the tone for the week. The trade talks could become a highly volatile catalyst for BTC and the broader crypto market, with the potential to create sharp price movements. Analysts believe that BTC’s current price action is unstable. Dominick John, an analyst at Kronos Research, stated,
“Trading above $105K signals strength, but the structure remains fragile. With the Fear & Greed Index at 55, sentiment has balanced markets in a wait-and-see mode, looking for a macro trigger or confirmation of trend.”
Kay Lu, CEO of HashKey Eco Labs believes BTC is trading within a delicate range around key support levels. Investors are also nervous and could sell their holdings at the hint of bearish market developments. However, on-chain data shows that Bitcoin’s price support of above $105,000 has been bolstered by institutions adopting the asset and adding it to their corporate treasuries. Min Jung, an analyst at Presto Research, stated,
“BTC has been supported by the ‘BTC for Corporations’ narrative, with more companies following Strategy’s playbook.”
BTC’s short-term price action and volatility will be shaped by upcoming macroeconomic events. Volatility will pick up midweek, with the US Consumer Price Index and the Producer Price Index numbers due to be published.
“We could see volatility pick up mid-week … Both CPI and PPI are on the calendar, and any upside surprise in inflation data could weigh on risk assets broadly, including crypto.”
These indicators could provide insights into whether the Federal Reserve will cut interest rates during its next meeting. However, analysts expect the Fed to leave interest rates unchanged.
BTC registered a sharp decline as it entered the previous weekend, dropping over 2% on Thursday (May 29) and 1.51% on Friday to slip below the 20-day SMA and $105,000 and settle at $104,067. Despite the selling pressure, the price recovered over the weekend, rising 0.69% on Saturday and 0.95% on Sunday to reclaim $105,000 and settle at $105,779. BTC plunged to an intraday low of $103,768 on Monday as selling pressure intensified. However, it recovered from this level to register a marginal increase and settle at $105,902. The price was back in the red on Tuesday, falling 0.44% to $105,436.
Source: TradingView
Sellers retained control on Wednesday as BTC fell almost 1%, slipping below $105,000 and settling at $104,752. Selling pressure intensified on Thursday as the price fell 3%, dropping to an intraday low of $100,424 before settling at $101,614. Despite the overwhelming selling pressure, BTC recovered on Friday, rising almost 3% to recoup most of its losses and settle at $104,378. The price continued to push higher on Saturday, increasing 1.15% to reclaim $105,000 and settle at $105,575. BTC could only register a marginal increase on Sunday and has fallen back into the red during the ongoing session, trading around $105,596. A drop below $105,000 could cause BTC to plunge to $100,000 or lower. On the other hand, buyers will look to regain control and push the price towards $110,000.
Ethereum (ETH) Price Analysis
Ethereum’s (ETH) decline continued as it extended Sunday’s losses, falling below $2,500. ETH has been subdued in recent sessions after struggling to recover from a substantial 7% drop on Thursday, which saw the price plunge to a low of $2,393. ETH investors are cautiously consolidating as the world’s second-largest cryptocurrency tests a key support level at $2,500. Despite ETH’s subdued price action, institutional interest in the asset has registered a notable uptick. Ethereum ETFs have registered consistent inflows, with data from SoSoValue revealing inflows worth $281 million just last week alone.
Institutional interest goes beyond ETFs, with companies beginning to buy ETH for their treasuries. SharpLink Gaming, a Nasdaq-listed company, recently announced a $425 million funding round to buy ETH. US-based Abraxas Capital also increased its ETH holdings to over $800 million. The altcoin is trading at the lower end of its trading range but has strong support at these levels.
ETH raced to an intraday high of $2,790 on Thursday (May 29) as buyers attempted a move past $2,800. It lost momentum at this level and fell nearly 2% to $2,632. Bearish sentiment intensified on Friday as ETH plunged almost 4%, slipping below the 20-day SMA and $2,600 to $2,532. The price registered a marginal decline on Saturday before rising 0.44% to end the weekend at $2,539. ETH rebounded on Monday, rising 2.66% to reclaim $2,600, cross the 20-day SMA and settle at $2,607. However, it lost momentum after reaching this level and dropped 0.53% on Tuesday to settle at $2,593.
Source: TradingView
ETH recovered on Wednesday, reaching an intraday high of $2,679 before settling at $2,607, ultimately registering a marginal increase. Bearish sentiment returned on Thursday as ETH plunged over 7%, slipping below the 20-day SMA and settling at $2,415, but not before hitting an intraday low of $2,415. However, it recovered on Friday, rising nearly 3% to $2,479. The price continued to push higher on Saturday, increasing 1.87% to reclaim $2,500 and settle at $2,525. Price action turned bearish on Sunday as ETH registered a marginal decline and fell to $2,511. The current session sees ETH down almost 1%, trading around $2,492. If ETH regains momentum, it could push towards $2,600. A break above this level could see the price surge to $2,800. However, if support does not hold, ETH could slip below $2,400.
Solana (SOL) Price Analysis
Solana (SOL) continued its upward trajectory over the weekend but has lost momentum during the ongoing session, starting the week in the red. SOL registered a sharp decline on Thursday, plunging to a low of $141 before recovering over the weekend to reclaim $150 and end Sunday at $152. If bullish sentiment returns, analysts predict a move to $160. However, if sellers retain control, the price could continue to decline and test $140.
SOL has traded downwards since being rejected from $180 and the 200-day SMA. The altcoin registered a sharp decline on Wednesday (May 28) and Thursday, falling to $166. Bearish sentiment intensified on Friday as the price plunged over 6%, slipping below $160 and settling at $156. The weekend saw volatility as sellers attempted to overwhelm buyers. However, SOL registered a marginal increase on Saturday and rose almost 1% on Sunday despite falling to a low of $150 to settle at $157. Price action turned bearish on Monday, and SOL registered a marginal decline to settle at $156, but not before dropping to a low of $151. The price raced to an intraday high of $164 on Tuesday but lost momentum, falling over 1% to $155.
Source: TradingView
Sellers retained control on Wednesday as SOL fell 1.29% to $153. Selling pressure intensified on Thursday as the price plunged nearly 6%, slipping below $150 and settling at $144. Despite the bearish sentiment, SOL recovered on Friday, rising 2.47% and settling at $147. Price action remained bullish over the weekend as SOL rose 1.51% on Saturday and 1.56% on Sunday to reclaim $150 and settle at $152. However, it is back in the red during the ongoing session, with the price down over 1%, as sellers look to drive it below $150.
Bittensor (TAO) Price Analysis
Bittensor (TAO) fell below the 20-day SMA on Thursday (May 29) and settled at $414. Selling pressure intensified on Friday as the price fell over 9%, slipping below $400 and the 200-day SMA and settling at $376. TAO recovered on Saturday, surging over 14% to reclaim $400, cross the 200-day SMA and settle at $430. However, it could not cross the 20-day SMA and was back in the red on Sunday, dropping almost 4% to end the weekend at $414. The price declined on Monday, falling 2.51% to $403. Sellers retained control on Tuesday as TAO fell over 4%, slipping below $400 and the 200-day SMA and settling at $386.
Source: TradingView
Buyers attempted a recovery on Wednesday as the price reached an intraday high of $399 but lost momentum after reaching this level, ultimately settling at $380. Bearish sentiment intensified on Thursday, falling nearly 8% to $351. Despite the overwhelming selling pressure, the price recovered on Friday, rising almost 5% to settle at $367. Buyers retained control on Saturday as TAO rose nearly 5% and settled at $386. However, it was back in the red on Sunday, falling almost 1% to end the weekend at $382. The current session sees the price up over 1%. If TAO continues to push higher, it could reclaim $400 and look to cross the 20 and 200-day SMAs.
Injective (INJ) Price Analysis
Injective (INJ) reached $15 on Wednesday (May 28) but lost momentum, dropping over 7% on Thursday and over 12% on Friday to $12.17. Price action remained bearish on Saturday as it fell 0.45%. However, it recovered on Sunday to register a marginal increase and end the weekend positively. The price continued to push higher on Monday, rising over 2% to $12.41. INJ raced to an intraday high of $13.11 on Tuesday before losing momentum and settling at $12.49, ultimately registering a marginal increase. Price action turned bearish on Wednesday, falling almost 4% and settling at $12.02.
Source: TradingView
Selling pressure intensified on Thursday as INJ plunged over 6%, slipping below $12 and settling at $11.28. Despite the overwhelming selling pressure, INJ recovered on Friday, rising almost 6% and settling at $11.91. Bullish sentiment intensified on Saturday as INJ surged nearly 10%, reclaiming $13, crossing the 20-day SMA, and settling at $13.09. Buyers retained control on Sunday as the price rose over 1% to $13.25. However, INJ is back in the red during the ongoing session, with the price down over 1%, trading at $13.11.
Polkadot (DOT) Price Analysis
Polkadot (DOT) plunged over 5% on Thursday (May 29), falling to $4.34. Bearish sentiment intensified on Friday as the price fell nearly 7% to $4.05. DOT recovered over the weekend, rising almost 1% on Saturday before registering a marginal decline on Sunday to settle at $4.07. Buyers returned to the market on Monday as the price rose nearly 2% and settled at $4.15 despite facing selling pressure. However, it was back in the red on Tuesday, dropping to $4.14. Sellers retained control on Wednesday as DOT fell over 3% to $4.
Source: TradingView
Selling pressure intensified on Thursday as the price plunged 4.50%, slipping below key support levels and settling at $3.82. Despite the overwhelming selling pressure, DOT recovered on Friday, rising nearly 2% to $3.89. Bullish sentiment intensified on Saturday as the price registered an increase of almost 4% to reclaim $4 and settle at $4.04. However, DOT lost momentum on Sunday and fell 0.50% to end the weekend at $4.02. The current session sees the price marginally up as buyers and sellers struggle to establish control.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
