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Market Wrap: Metaverse Tokens Rise; Crypto Analysts Expect More Volatility

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Damanick Dantes Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

Krisztian Sandor Krisztian Sandor is a reporter on the Crypto Explainer+ team. He has written for Forbes and Reuters. He holds BTC and ETH.

Bitcoin ( BTC ) continued to trade sideways on Wednesday, indicating a pause in bearish sentiment among traders. However, most alternative cryptos traded higher on Wednesday, paring losses from last week. For example, Decentraland’s MANA token was up by 3% over the past 24 hours and is roughly flat over the past week.

Meanwhile, The Sandbox’s SAND token rose by 7% on Wednesday. MANA and SAND are metaverse tokens, used to exchange value in a virtual game setting. Just launched! Please sign up for our daily Market Wrap newsletter explaining what happens in crypto markets – and why.

Also, on Wednesday, the U. S. Federal Reserve published minutes from its committee meeting of earlier this month, which indicated that multiple 50 basis point interest rate increases could occur over the next several meetings.

Stocks traded slightly higher, while gold and the 10-year Treasury bond yield ticked lower over the past 24 hours. ● Bitcoin (BTC): $29,578, +0. 68% ● Ether (ETH): $1,950, −0.

59% ● S&P 500 daily close: 3,979, +0. 95% ● Gold: $1,853 per troy ounce, −0. 64% ● Ten-year Treasury yield daily close: 2.

75% Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.

com/indices. Range-bound price action typically results in a volatile breakout or breakdown. The chart below shows the recent rise in open interest, or the number of outstanding contracts, in the bitcoin perpetual futures market .

“Rapid surges in open interest tend to foreshadow large moves in the market,” Arcane Research wrote in a report this week. For example, a similar rise in open interest occurred shortly before a short squeeze in July of last year when BTC was trading around $30,000. But a rise in open interest also coincided with BTC’s price peak of around $48,000 in March, and remained elevated during subsequent sell-offs in price, according to Arcane.

Bitcoin perpetual open interest (Arcane Research) With so much uncertainty, traders have been unwilling to express a strong bullish or bearish bias. For example, funding rates, or the cost to fund long and short positions in the perpetual futures market, have been moved between neutral and negative over the past few months. That means traders holding short positions have been dominant in the market, willing to pay long traders to express a bearish view.

Still, funding rates have not been deeply negative in a while, which typically occurs around price bottoms. Likewise, extreme rises in funding rates have typically occurred around price peaks. That suggests the excess speculative activity that defined the 2020-2021 bull market has receded.

Bitcoin average funding rate (CryptoQuant) Most digital assets in the CoinDesk 20 ended the day higher. Sector classifications are provided via the Digital Asset Classification Standard (DACS) , developed by CoinDesk Indices to provide a reliable, comprehensive and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.

DISCLOSURE Please note that our privacy policy , terms of use , cookies , and do not sell my personal information has been updated. The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies . CoinDesk is an independent operating subsidiary of Digital Currency Group , which invests in cryptocurrencies and blockchain startups .

As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights , which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG. Damanick Dantes Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis.

He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets. Krisztian Sandor Krisztian Sandor is a reporter on the Crypto Explainer+ team.

He has written for Forbes and Reuters. He holds BTC and ETH. Damanick Dantes Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis.

He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets. Krisztian Sandor Krisztian Sandor is a reporter on the Crypto Explainer+ team.

He has written for Forbes and Reuters. He holds BTC and ETH. .


From: coindesk
URL: https://www.coindesk.com/markets/2022/05/25/market-wrap-metaverse-tokens-rise-crypto-analysts-expect-more-volatility/?utm_medium=referral&utm_source=rss&utm_campaign=headlines

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