Crypto Market Daily Highlights – May 10 – BTC Tests Resistance at $32,000

Key Insights:

• The crypto market bounces back after a four-day meltdown, with $94 billion added back to the total crypto market cap.
• Tuesday was not without events, with Binance suspending TerraUSD (UST) and Terra (LUNA) withdrawals.
• Stablecoin UST bounced back to $0.93 levels after a brief revisit to $0.61 levels, thanks to a Luna Foundation Guard intervention.

It has been a particularly bullish Tuesday, with Bitcoin driving a market recovery. After a bearish start to the session, the crypto market has been in recovery mode following Monday’s meltdown.

Investor angst towards US inflation paused, with the markets betting on softer April numbers to ease market tension.

US futures were in positive territory throughout the day and in the run-up to the US open, delivering much-needed support.

The market remains at risk of another sell-off, however, should US consumer prices spike again. The numbers are due out tomorrow.

Bitcoin Correlation with the NASDAQ 100 Provides Crypto Market Relief

On Monday, bitcoin (BTC) fell for a fifth consecutive day. This morning, BTC visited sub-$30,000 for the first time since July 2021 before finding support.

Through the morning session, BTC struck a morning high of $32,625 before easing back. BTC found support from a rise in the NASDAQ 100, with investors betting on softer US inflation numbers due on Wednesday.

At the time of writing, BTC was up 5.35% to $31,687, with the NASDAQ 100 up 144.03 points.

Terra (LUNA) and TerraUSD (UST) Find LFG Support

On Monday, the TerraUSD (UST) dollar peg shattered, with UST tumbling to a day low of $0.7494. This morning, UST fell further back from the $1 peg, with a morning low of $0.6134 before bouncing back to a current-day high of $0.9317.

A Luna Foundation Guard (LFG) intervention delivered the much-needed support. The crypto community questioned, however, the LFG’s intervention and the ethos of decentralization.

LUNA and UST activity was so rampant that Binance suspended LUNA and UST withdrawals earlier today.

Away from BTC and the Crypto Chaos, It Was a Busy Session

• Meta started testing NFTs on Instagram, with a Facebook launch to follow.
• The Bank of Israel talked of public support for its plan to issue a digital shekel.
• Madonna and Beeple collaborated to launch a three NFT collection titled ‘Mother of Creation.’
• UK PM Boris Johnson pledged to strengthen powers to fight illicit activity, by empowering authorities to seize crypto assets.
• On Friday, May 13, Ripple Lab Defendants are due to respond to the SEC brief claiming the William Hinman documents are protected by the attorney-client privilege.