Bitcoin can't accelerate but won't give up trying

Market picture

The crypto market capitalisation fell by 1.7% in 24 hours to $2.29 trillion, as Bitcoin lost 1.1% and Ethereum - 3%, but Solana has added 4%. However, the latter is noticeably out of step, with most of the other coins going down.

On Monday, Bitcoin failed for the second time in a fortnight to break above the 50-day moving average. The price very easily went from $64.5K to $65.5K, where it met with impressive selling volume that pushed the price back to $62.6K by the end of the day. The positive performance of Asian and European stock exchanges fuels the appetite for Bitcoin. It cannot be ruled out that we will see further attempts to climb above the 50-day.

News background

Hong Kong-registered bitcoin-ETFs could soon become available to mainland Chinese investors, leading to a surge in demand for the product, according to SyzCapital. Chinese citizens channel most of their savings into property, and there is an urgent need for more investment opportunities.

The Bitcoin blockchain has processed one billion transactions in the last 15 years of operation. In the 5603 days of the blockchain's existence, there have been an average of 178,475 transactions per day. The total does not include transactions on second-tier networks like the Lightning Network.

According to blockchain.com, bitcoin miners' post-halving revenue has collapsed to its lowest since October 2023. Earlier, 10x Research admitted that miners could start selling off $5bn worth of Bitcoin reserves to sustain their operations.

The US SEC has issued a warning to broker Robinhood about the possibility of filing a lawsuit. This is a Wells notice, in which the agency says it has found violations of securities laws, and the case could go to court.

According to Bloomberg, more than 90% of transactions involving stablecoins are made by bots and large traders, suggesting little use of cryptocurrencies as a means of payment. "In the US, people still use cheques for 40-60% of business payments, which indicates where the market really is in terms of technology adoption", Airwallex noted.

On 6 May, an unknown whale moved 687.33 BTC (about $44 million) after ten years and three months of "hibernation", Lookonchain pointed out. According to Chainalysis and Fortune, 1.75 million Bitcoin wallets have been inactive for more than ten years. They hold 1.8 million BTC (~$121bn) or 8.5% of total issuance.

By the FxPro Analyst Team