Complete Gate Post tasks to upgrade your rank

Credit Ranking

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/image/article/16848044800523.jpg)

## Crypto Daily Digest: Investment Outflows Continue as Bitcoin Struggles; Tether's Rising Market Cap Raises Questions Amidst Lackluster Trading Volume

In the cryptocurrency market, <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> (BTC) and Ether (ETH) saw modest increases, with BTC rising by 0.4% to approximately $26,865, and ETH climbing 0.8% to around $1,820. The overall crypto market cap experienced a 0.42% increase.

<a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>-based non-fungible tokens (NFTs) have swiftly gained traction and now rank second in terms of NFT sales per blockchain, surpassing networks like <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a>, as reported by CryptoSlam. Despite being a recent development since the introduction of in_script_ions on the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> mainnet in January 2023, <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> NFTs have generated roughly $167 million in sales over the past month. While still trailing behind <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>'s sales of nearly $397 million, <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> NFT sales are nearly three times higher than those on the <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> network, which recorded approximately $57 million in sales. The surge in <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> NFT popularity can be attributed to the Ordinals Protocol, enabling data in_script_ions on satoshis, the smallest unit of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>. One noteworthy collection, <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> Frogs, has emerged as the leading <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>-based NFT collection, amassing $6.3 million in sales over the past week.

Meanwhile, digital asset investment products have experienced outflows for the fifth consecutive week, coinciding with the decline in <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>'s value throughout May. CoinShares reported total outflows of $232 million during this period, with $32 million withdrawn in the last week alone. <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> products accounted for the majority of the outflows, with investors pulling out $33 million. Surprisingly, even products that shorted BTC saw an outflow of $1.3 million, reflecting negative sentiment towards both long and short investment products. In contrast, altcoins like <a href="/price/avalanche-avax" target="_blank" class="blog_inner_link">Avalanche</a> and <a href="/price/litecoin-ltc" target="_blank" class="blog_inner_link">Litecoin</a> witnessed inflows of $0.7 million and $0.3 million, respectively, although Ether experienced outflows of $1 million.

![](https://gimg2.gateimg.com/image/article/1684804569Untitled0523 1.png)

Data per CoinShares.

The stability of the dominant stablecoin, <a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a>, has raised concerns due to its increasing market capitalization despite lackluster crypto trading volume, according to researcher Kaiko. <a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a>'s market cap stands at $82.9 billion, showing little correlation with overall volume, which is questionable considering its primary use case in trading. Despite the downturn in market activity, <a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a>'s market share relative to other stablecoins has not significantly increased, and the correlation between trade volume and market cap has reached zero. 

![](https://gimg2.gateimg.com/image/article/1684804583Untitled0523 2.png)

Data per Kaiko.

In contrast, rival stablecoin USDC demonstrates a clear correlation between trade volume and market cap. <a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a>'s significant issuance occurs on the <a href="/price/tron-trx" target="_blank" class="blog_inner_link">TRON</a> blockchain, preferred by market makers and other large investors due to its low transaction fees.

![](https://gimg2.gateimg.com/image/article/1684804597Untitled0523 3.png)

Data per Kaiko.

## Bitcoin (BTC) $29063 (+0.14%) - Neutral Outlook

![](https://gimg2.gateimg.com/image/article/1684804619Untitled0523 4.png)

![](https://gimg2.gateimg.com/image/article/1684804656Untitled0523 5.png)

![](https://gimg2.gateimg.com/image/article/1684804670Untitled0523 6.png)

Today's analysis builds upon last week's observations. If you want more detailed information about recent price analysis, please refer to the daily news article from yesterday. As mentioned previously, we predict that BTC will continue to decline, potentially reaching levels between 26120-25818, or even as low as 25240-24570, before the recovery phase starts. However, when we examine the 1-day timeframe, the recent low trading volume suggests that BTC's price might remain around its current levels for an extended period, indicating a prolonged period of accumulation. On the other hand, when we look at the weekly timeframe, we can observe a larger accumulation pattern, which implies that BTC could experience a drop as significant as 24270 before a surge above the recent high of 31015 occurs. It's possible that smart money are aiming for a target of 41900, although this particular move could take at least three months to complete when considering the weekly timeframe.

 **Overview:**

- ***Closest hourly support zone: 26690 - 26570***
- ***Closest hourly resistance zone: 27080 - 27260***
- ***Key Level: 26285 (Weekly Close between Dec. 21-28, 2020)***


<br> **Hourly Resistance zones**

1. 27080 - 27260
2. 27540 - 27660
3. 27790 - 28020


<br> **Hourly Support zones**

1. 26690 - 26570
2. 26380 - 26120
3. 25900 - 25818


## Macro: Treasury Yields Rise, Currencies Trade Cautiously Amid US Debt Discussions; Federal Reserve Hints at Potential Rate Hikes

US equity futures and Asian benchmarks are signaling a potential upward movement as talks between Republican House Speaker Kevin McCarthy and President Joe Biden regarding the debt ceiling appear to have been productive. Japanese and Hong Kong stocks are expected to start the day with gains, while Australian shares may see modest increases. Although concerns about a possible US default still linger, S&P 500 futures have shown a slight uptick.

Chipmakers are facing pressure after China's announcement that Micron Technology Inc. products failed a cybersecurity review. This development adds to the overall uncertainty in the markets. Investors are eagerly awaiting a resolution to the impasse between Democrats and Republicans to avoid a government funding shortfall. The lingering deadlock is keeping market participants on edge.

Another factor impacting Asian markets is the concern over the recovery of China's economy and its effect on commodity prices. This worry has weighed on sentiment, particularly regarding key commodities such as iron ore and copper, which have experienced recent declines.

However, Hong Kong stocks managed to rise more than 1% in response to President Biden's hints at potential improvements in relations with Beijing. This positive development has provided a boost to investor confidence in the region.

Meanwhile, short-term Treasury yields have risen, and major currencies have been trading within narrow ranges. Australian and New Zealand government bond yields have also seen slight increases. Oil and gold markets have remained relatively stable, with no significant movements observed. Traders are cautious and avoiding taking decisive actions amid the ongoing US debt discussions.

Once a resolution on the debt ceiling issue is reached, market attention is expected to shift back to the broader economic landscape and the Federal Reserve's policies. St. Louis Federal Reserve President James Bullard has hinted at the possibility of two more rate hikes this year, indicating a potentially more hawkish stance. Minneapolis Fed President Neel Kashkari has suggested that if the central bank pauses tightening at the upcoming meeting, it should be seen as a signal that the tightening process is not yet over.

In Greece, markets experienced positive momentum following Prime Minister Kyriakos Mitsotakis' strong performance in the national election. This outcome indicates a continuation of investor-friendly policies in the country. As a result, the benchmark Athens Stock Exchange Index reached its highest level in nearly a decade. On the other hand, the Euro Stoxx 600 remained relatively unchanged during this period.



<div class="blog-details-info">
<div>Author:** Peter L. **, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

简体中文

English

Tiếng Việt

Español

Русский язык

Français

ภาษาไทย

日本語

Indonesia

Deutsch

عربي

Português (Portugal]

Português (Brasil]

繁體中文

Українська

BTC and ETH prices see modest increases while Bitcoin NFTs gain popularity. Outflows continue in digital asset investment products. Tether_s rising market cap raises concerns amidst low trading volume. Greece experiences positive market momentum.

福利中心

小红花-Learn & Explore-博客

小红花-Learn & Explore-快讯

币圈-币圈-未来事件

小红花-Learn & Explore-聊天室

小红花-Learn & Explore-直播

小红花-Learn & Explore-动态

币圈

Gate OTC

芝麻金融-更多-财富管理

机构-APIs

机构-大宗交易服务

机构-经纪商项目

全球做市商计划

机构-托管和资产管理

机构借贷

机构-做市商项目

小红花-Promotions-机构和VIP服务

量化基金

机构-基础架构

机构-交易

机构-金融

结构化产品

机构-主页

衍生品-统一账户

芝麻金融-更多-抵押借币

vip服务

机构

策略跟单

现货跟单

交易-合约跟单

跟单

量化策略-探索

量化策略-进阶

量化策略-基础

交易-机器人广场

创建机器人

探索机器人

杠杆网格

无限网格

期现套利

组合指标策略

智能调仓

现货马丁格尔

合约网格

现货网格

交易机器人

芝麻金融-更多-ETH2.0挖矿

芝麻金融-更多-法币理财

链上赚币

芝麻金融-理财-双币宝

芝麻金融-理财-定期理财(屯币)

芝麻金融-理财-结构性理财

芝麻金融-理财-理财宝

芝麻金融-理财-余币宝

GT挖矿

芝麻金融-更多（理财产品）

芝麻金融-理财（打新）

launchpool

launchpad

赚币-HODLer Airdrop

candy_drop

web3 Airdrop

赚币

模拟交易

衍生品-期权

衍生品-交割合约

衍生品-永续合约

合约入门

合约活动

衍生品

交易-杠杆ETF

交易-杠杆交易

交易-闪兑

交易-现货交易

交易-创新交易

交易-交易工具

交易-交易类型

交易-盘前交易

Alpha

交易

行情

买币-gateCard

卖币

买币-快捷交易

买币

买币-paywith

法币定投

小红花-推广

新手指南

活动中心

小红花-Learn & Explore-学院

小红花-Exchange-最新公告

小红花-Exchange-帮助中心

gate商店

小红花-Promotions-邀请计划

小红花-promotions-代理商

储备金

合作伙伴

cextg小程序

小红花

web3

Daily News | Investment Outflows, Tether's Market Cap, and Cautious Currency Trading Amid US Debt Talks