Crypto Market Daily Highlights – May 6

Key Insights:

• Tron (TRX) is on a breakout session while the broader crypto market struggles amidst investor angst over Fed monetary policy.
• Illicit activity in the NFT space shows no relenting, with OpenSea marketplace the latest victim.
• SEC finds hope of shielding William Hinman’s 2018 speech-related documents and emails in the latest twist to the SEC v Ripple case.
• Argentina joins a growing list of jurisdictions to curtail customer access to digital assets through banks.

It is a bearish end of the week for the global financial markets, with the European and US equity markets facing the prospect of a second consecutive day in the red. Tron (TRX) bucked the morning trend, despite the bearish crypto market sentiment.

Market jitters over inflation and the need for a more aggressive Fed rate path to curb inflation sent shockwaves through the global financial markets.

The correlation between bitcoin (BTC) and the NASDAQ 100 strengthened in the week, removing any thought of BTC acting as an inflation hedge.

Tron (TRX) Leads a Choppy Friday Crypto Session

At the time of writing, Tron (TRX) was up 13.11% to $0.08428. A bullish morning session saw TRX rally to a current-day high of $0.0865 before easing back.

The breakout session came despite the broader crypto market seeing red. News of Tron launching TerraUSD (UST) Competitor USDD, with promises of 30% APY, delivered strong support.

Similar to the Luna Foundation Guard (LFG), Tron plans to raise $10 billion for its decentralized reserve called TronDAO.

CoinMarketCap top 100, Algorand (ALGO) also made ground through the morning. News of Algorand becoming a FIFA World Cup 2022 partner continued to provide support despite Thursday’s sell-off.

The SEC Scores a Minor Win in the SEC v Ripple Case

Following a number of motions on Tuesday, the SEC scored a minor victory on Wednesday. On Wednesday, Judge Sarah Netburn granted the SEC’s request to file a reply brief in its bid to shield Hinman’s speech documents and emails.

Former SEC Director of the Division of Corporation Finance, William Hinman, has become a central figure in the SEC case against Ripple.

In 2018, William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The SEC is looking to shield documents and emails relating to internal discussions and Hinman’s famous speech.

Bitcoin (BTC) Faces Another Testy Day

At the time of writing, BTC was down 1.48% to $36,033. A bearish morning saw BTC fall to an early morning low of $35,319 before a partial recovery to $36,000 levels.

Correlation with the NASDAQ 100 strengthened through the week, with market sentiment towards Fed monetary policy weighing on riskier assets.

At the time of writing, the NASDAQ 100 was down 0.95%, following a 4.99% tumble on Thursday.

This week, movement across the crypto markets demonstrated the impact of central bank policy on cryptos, questioning the ethos of decentralization.

Other news this morning included the Central Bank of Argentina banning banks from offering cryptos to clients in the interest of financial stability.

NFT marketplace OpenSea also grabbed the crypto headlines with news of cybercriminals hacking OpenSea’s Discord server.