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Bitcoin rises in response to jobs data

Bitcoin (COIN:BTCUSD) experiences a 4.5% increase on May 3, driven by US employment data. BTC/USD is trading at $61,751 at the time of writing. Specifically, non-farm payrolls numbers for April fell below expectations, indicating weakness in the job market. This revelation suggests a possible interest rate cut, as hinted by Federal Reserve Chairman Jerome Powell during a press conference. Powell indicated a cautious stance on interest rates amid labor market weakness. This outlook was well received by investors, leading to an increase in Bitcoin price.

Furthermore, Fernando Pereira, an analyst at Bitget, in his technical analysis of BTC for May, highlighted that Bitcoin is currently testing significant support around $60,000. “BTC is testing very strong support at $60,000, which should hold the price for a while, but when we look at the long short ratio and see that 75% of the market has open long futures contracts, this is a very strong indicator that all these contracts must turn into liquidity for the price to break this support and go after lower targets, like $54,800 in the short term and $52,000 in the medium term,” commented Pereira.

Today is the expiration day for cryptocurrency options, with an expected settlement of $1.39 billion in Bitcoin options and $1 billion in Ethereum options. Approximately 23,367 Bitcoin contracts, worth $1.39 billion, are set to expire, with a maximum pain point at $61,000. Meanwhile, about 334,248 Ethereum contracts, with a notional value of approximately $1 billion, are also expiring today.

Market leaders and laggards of the week

In the past week, four cryptocurrencies stood out, with Polkadot (COIN:DOTUSD) and Cosmos (COIN:ATOMUSD), both multi-chain protocols, rising by 5.83% and 6.90%, respectively. In contrast, three assets, including NEAR (COIN:NEARUSD), Dogecoin (COIN:DOGEUSD), and Bitcoin Cash (COIN:BCHUSD), experienced declines of -5.73%, -7.57%, and -6.24% over the last 7 days, respectively.

Movement of funds in Bitcoin ETFs on the last day

On May 2, Bitcoin ETFs recorded a total outflow of $34.4 million, with the Grayscale ETF (AMEX:GBTC) being the only one to incur losses. This outflow contrasts with the previous day, when all ETFs experienced reductions. Specifically, the GBTC saw an outflow of $54.9 million, holding 291,248 Bitcoins. Notably, BlackRock (NASDAQ:IBIT), Fidelity (AMEX:FBTC), and Bitwise (AMEX:BITB) ETFs saw no inflows or outflows. However, the Ark ETF (AMEX:ARKB) witnessed a significant inflow of $13.3 million, the largest since April 23.

BNP Paribas invests in BlackRock’s Bitcoin ETF

BNP Paribas, one of Europe’s largest banks, has started purchasing shares of BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT), marking its entry into the Bitcoin market through an ETF. According to its recent 13F form, the bank acquired 1,030 shares of IBIT, valued at $41,684, representing a small portion of its total investments, totaling $113.8 billion.

CleanSpark reports notable increase in Bitcoin mining after halving

CleanSpark (NASDAQ:CLSK), a prominent Bitcoin miner (COIN:BTCUSD), reported significant production in its first post-halving monthly update, achieving a hashrate of 17 EH/s and mining 721 BTC. With the deployment of advanced S21 machines and expansion of facilities, the company optimized efficiency and reduced costs. CEO Zach Bradford highlighted an increase in transaction fees that boosted production, also anticipating a possible correction in Bitcoin price due to the exit of less efficient miners.

Stronghold Digital Mining explores sale among other strategies to maximize shareholder value

Stronghold Digital Mining (NASDAQ:SDIG) announced that it is evaluating strategies such as selling the company or other strategic transactions to increase value for shareholders. After disclosing solid financial and operational results for the first quarter on May 2, the company, with support from Cohen and Company Capital Markets and advisory from Vinson & Elkins LLP, is exploring various options without a defined deadline for completion. In the first quarter of 2024, Stronghold Digital Mining reported revenue of $27.5 million, representing a 27% sequential increase and a 59% year-over-year increase. Of these, $26.7 million came from cryptographic operations. The company also recorded a GAAP net profit of $5.8 million and a non-GAAP adjusted EBITDA of $8.7 million.

Coinbase registers robust profit in first quarter and analyzes Bitcoin pullback in global market context

In the first quarter, Coinbase Global (NASDAQ:COIN) performed exceptionally well, benefiting from favorable market conditions and diversification of its business. The cryptocurrency trading company reported a net profit of $1.2 billion and earnings per share of $4.40, including a $650 million mark-to-market gain on cryptographic assets. Analysts such as Canaccord Genuity and KBW adjusted their price forecasts to reflect the growing international opportunity and the introduction of new products such as the Coinbase Prime wallet and the Layer 2 blockchain, Base.

In a recent report, Coinbase highlighted that the decline in Bitcoin price (COIN:BTCUSD) in April, which saw the cryptocurrency depreciate by 16%, reflects a broader trend not limited to the cryptocurrency sector. According to the analysis, this movement mirrors declines also observed in stocks and gold amid a strengthening dollar. Analysts David Han and David Duong emphasize that Bitcoin’s maximum drawdown of 23% since the peak is below historical declines, suggesting a reduction in price fluctuations and a sign of greater stability and legitimization of Bitcoin as a global macroeconomic asset.

Block initiates monthly Bitcoin purchase program to increase reserves

Payment company Block (NYSE:SQ), under the leadership of Jack Dorsey, has launched a program to allocate 10% of its monthly gross profit from bitcoin operations to the purchase of more bitcoins. The initiative began in April and is scheduled to continue until the end of 2024. With a bitcoin gross profit of bitcoin of $80 million in the first quarter, Block can add approximately $24 million in bitcoin to its balance annually. The company already holds a significant amount of bitcoin (COIN:BTCUSD), valued at around $4.7 billion.

Michael Saylor defends bitcoin as the best corporate hedge against inflation and predicts Ethereum’s classification as a security by the SEC

During the MicroStrategy World: Bitcoin for Corporations event, Michael Saylor, CEO of MicroStrategy (NASDAQ:MSTR), highlighted bitcoin’s superiority in strengthening corporate balance sheets in an inflationary environment. He argued that bitcoin (COIN:BTCUSD) is the only asset that outperforms the cost of capital, considering all other assets as dilutive. Saylor also discussed the inadequacy of investments such as gold, silver, and government bonds in keeping up with the cost of capital, highlighting the performance of the S&P 500 as a reflection of monetary expansion and inflation.

Additionally, Saylor predicts that the SEC will classify Ethereum (COIN:ETHUSD) and other major cryptocurrencies as securities, denying spot ETF requests from managers like BlackRock (NYSE:BLK). During his presentation at the conference, he expressed that unlike other cryptocurrencies such as BNB (COIN:BNBUSD), Solana (COIN:SOLUSD), Ripple (COIN:XRPUSD), and Cardano (COIN:ADAUSD), only Bitcoin has complete institutional acceptance, described by him as the only universally institutional-grade cryptographic asset.

Increase in venture capital investments in cryptocurrency startups in 1Q24

After three consecutive quarters of decline, the cryptocurrency and blockchain sector saw a notable increase in venture capital investment in early 2024. A report by Galaxy Research revealed that $2.49 billion was invested in 603 transactions in the first quarter, a 29% growth in funding volume and a 68% increase in the number of deals compared to the previous quarter. This improvement may indicate a recovery, but continuous increases in the coming quarters will be needed to confirm a sustained upward trend. Various factors, such as new innovations in blockchain technologies and macroeconomic conditions, influenced this dynamic. Nevertheless, total investment remains below levels seen at previous Bitcoin peaks.

Loss of $70.5 million in Bitcoin due to address poisoning scam

Cyvers Alert, a blockchain security company, reported the loss of 1,155 Wrapped Bitcoin (COIN:WBTCUSD), equivalent to $70.5 million, by a cryptocurrency trader due to an address poisoning attack. According to Meir Dolev, founder and CTO of Cyvers, this incident is one of the largest values ever lost in such a scheme. Address poisoning occurs when criminals create fake addresses similar to legitimate ones to deceive victims, leading them to transfer cryptocurrencies to fraudulent addresses.

Significant expansion of the Polkadot ecosystem in the Q1

According to a report by Messari, the Polkadot ecosystem (COIN:DOTUSD) saw a significant increase in its key metrics in the first quarter of the year. The market capitalization of the native DOT token rose from $8.4 billion at the end of 2023 to $12.7 billion, accompanied by a 270% jump in the price of DOT, reaching a peak of $11.3. The number of daily active addresses reached a record of 514,000, a 48% increase from the previous quarter. Moonbeam (COIN:GLMRUSD) remains the largest parachain, while Manta Network saw the largest growth in active addresses, driving Total Value Locked (TVL) to over $440 million. The network also experienced significant advances in the utilization of its Cross-Chain Message (XCM) format, demonstrating the ecosystem’s continued dynamism.

MoonPay adds PayPal support for cryptocurrency purchases in the US

MoonPay (COIN:GLMRUSD), a cryptocurrency payment platform, announced that it now allows users in the United States to buy and sell over 110 types of cryptocurrencies using PayPal (NASDAQ:PYPL). The integration, recently revealed, facilitates transactions for MoonPay users who are already familiar with PayPal for online purchases. This partnership also enhances transaction security, as PayPal does not share complete financial details during the process.

Paolo Ardoino proposes development of “Pear Phone” focusing on privacy

Paolo Ardoino, CEO of Tether and co-founder of Holepunch, revealed plans for a possible “Pear Phone.” This device, based on the Android Open Source Project (AOSP), would come equipped with Holepunch apps, such as Keet for encrypted messaging, along with other apps built on the Pear Runtime P2P protocol and the Bitkit Bitcoin wallet. Ardoino suggests that the phone will not have Google apps and will feature a peer-to-peer app store, aligning with Holepunch’s mission to promote P2P apps that ensure user privacy and reduce reliance on major tech companies.

ZTX introduces native token payment for beauty and regenerative treatments

The ZTX metaverse platform, in partnership with Frontier, a leading Japanese regenerative medicine company, announced that its native token ZTX (COIN:ZTXUST) will be accepted as a form of payment for cosmetics and treatments with stem cells and exosomes. Frontier offers exosome therapy in various clinics throughout Japan, covering everything from disease treatments to aesthetic procedures. The partnership allows patients to pay for treatments with ZTX tokens, including discounts for early payments.

EigenLayer increases token distribution after community feedback

The Ethereum reset protocol, EigenLayer, announced additional distribution of about 28 million of its EIGEN tokens to over 280,000 wallets. This decision follows criticisms of restrictions in the initial airdrop program. The Eigen Foundation stated that it will include in the distribution users who interacted with the protocol before April 29, also encompassing early participants. The distribution of EIGEN tokens, which are not yet on the market but are traded in futures contracts at $10 each, represents an estimated value of around $280 million. The official token delivery is scheduled to begin on May 10.

Former FTX co-CEO relinquishes Bahamas mansion

The ongoing fallout from the FTX collapse now involves a luxurious mansion in the Bahamas and a legal agreement. Ryan Salame, former co-CEO of FTX Digital Markets, a part of the now defunct exchange, has agreed to surrender his luxury residence on the island as part of a settlement in a criminal case. This agreement comes in a context where only he has suffered significant exits, contrasting with the company’s bankruptcy, which at its peak was valued at $32 billion. The scandal highlighted serious management failures and misuse of client funds, triggering a crisis of confidence in the cryptocurrency market.

Nigeria hosts roundtable for consensus on cryptocurrency regulation

The Nigerian Blockchain Industry Coordinating Committee (BICCoN) is organizing a meeting on May 6, involving the new director-general of the Nigerian Securities and Exchange Commission (SEC) and several cryptocurrency exchanges. BICCoN president Lucky Uwakwe announced that the virtual conference aims to align all stakeholders, from exchange operators to blockchain associations, to discuss and shape future cryptocurrency regulations in the country.