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Hong Kong expels Worldcoin
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Ethereum Inflow surges as wait continues for ETF approvals
Key points:
For the first time since March, there have been three consecutive days with inflows exceeding 400,000.
Short liquidation volume also reached a record high as Ethereum traded around $3,700.
News - Data from CryptoQuant showed that Ethereum has experienced increased inflows into exchanges over the past few days. On 21 May, approximately 627,770 ETH, valued at over $2.3 billion at around $3,789 per ETH, flowed into exchanges, marking the second-largest inflow volume in over a year.
The Netflow was positive for consecutive days as the price rose, indicating more ETH entering exchanges than leaving. However, in the last two days, the Netflow turned negative, meaning more ETH is now leaving the exchanges. This shift suggests that traders initially rushed to take profits as the price increased but are now withdrawing more ETH from exchanges.
Ethereum short traders - Short traders were caught off guard as the price increased. Data from CryptoQuant showed that the short liquidation volume surged to over $259 million before tapering off to over $9.5 million by 22 May. This $259 million short liquidation volume was the highest in over a year, with the last comparable surge occurring in October 2022.
Suspicion of institutional accumulation - Amid the recent price increase in Ethereum, speculation is mounting about the imminent approval of an Ethereum ETF.
A CryptoQuant chart revealed significant outflows of ETH on Coinbase on 11 March, 27 March, and 18 April, with volumes of approximately -134,000, -120,454, and -133,000 ETH, respectively. Similar outflow patterns were observed on Coinbase before the Bitcoin ETF approval announcement in January, suggesting that institutions might be positioning themselves for a potential Ethereum ETF approval now as well.
The U.S. Fed survey shows that 18M Americans used or owned crypto in the past year
Key points:
In 2023, only 1% of adults in the United States reported using cryptocurrency for payments or money transfers.
The Fed's results show a much lower figure than Coinbase's claim that 1 in 5, or 52 million, Americans own cryptocurrency.
News - In the 12 months leading up to October last year, 7% of surveyed U.S. adults reported using cryptocurrency, down from 10% in 2022 and 12% in 2021, according to the Fed's Survey of Household Economics and Decisionmaking (SHED). The number of U.S. adults reporting crypto ownership or usage dropped to around 18 million.
Additionally, only 1% of adults said they used crypto as a payment method or to send money, a decrease by half from 2022, while 7% purchased or held crypto as an investment.
A breakdown of the metrics -
Of the 1% who used cryptocurrency for financial transactions, nearly 30% cited the preference of the receiving party or firm for crypto as the reason, while the least cited reason was a lack of trust in banks.
The survey revealed that individuals with annual incomes of $100,000 or more were more likely to have used cryptocurrency for any purpose.
Additionally, millennials (aged 30 to 44) comprised the largest share of crypto users, closely followed by adult Gen Zs (aged 18 to 29).
Men were three times more likely to use crypto than women.
In terms of ethnicity, Black and Hispanic adults were the most common users of crypto for financial transactions.
Asian adults were the largest demographic using crypto as an investment, whereas White adults were the least likely to use crypto for any reason.
Bitcoin to surge past previous all-time highs as whale activity increases
Key points:
Bitcoin whale activity experienced an increase, a phenomenon that typically does not occur during this phase of the cycle.
The Bitcoin realized price gradient oscillator indicates that bulls need to sustain their momentum.
News - The exchange whale ratio displayed a rising trend throughout April and May, signaling increased whale activity, which is atypical during a bull market. Typically, whale activity subsides during a bullish long-term trend. However, it surged once the market peaked and prices began to decline.
Over the past two months, available Bitcoin was being accumulated while the price lacked a clear higher timeframe trend. This accumulation led to panic among retail holders despite substantial demand for spot BTC. Analysts anticipate that it's only a matter of time before prices surpass their previous all-time high against the U.S. Dollar.
Bitcoin’s price gradient oscillator - During the 2021 rally, as BTC approached its eventual peak, the oscillator displayed lower highs, indicating a diminishing bull trend. In 2024, the oscillator has similarly formed a lower high at 2.96. Therefore, a move above three would be favorable for bulls to avoid a repeat of the 2021 pattern, which suggests waning bullish momentum.
The price gradient oscillator gauges how rapidly the market cap increases relative to the realized cap. Over the last 48 hours, Bitcoin's price has dipped below the $71,000 level it briefly spiked to, with consecutive declines bringing it to around $69,000. However, despite these downturns, it has retained its bullish trajectory, as evidenced by its Relative Strength Index (RSI).
Hong Kong has expelled Worldcoin due to privacy concerns
Key points:
The Hong Kong government has instructed Worldcoin to halt its operations within the territory.
The regulatory body in the country argued that the collection of face and iris images was unnecessary and excessive.
News - On 22 May, the Hong Kong government issued an order for Worldcoin to cease its operations within the country's borders, accusing the identity project of circumventing privacy regulations. The administration's Privacy Commissioner for Personal Data (PCPD) has demanded that Worldcoin exit Hong Kong and has urged citizens to report any further Worldcoin activities. The PCPD contends that the collection of face and iris images was unnecessary and excessive.
Furthermore, it alleges that Worldcoin collected personal data unfairly by failing to provide privacy notices and consent forms in Chinese, not disclosing all potential risks, and inadequately informing participants of the purpose of data collection.
How the PCPD reached its conclusion- During the period from December 2023 to January 2024, the Privacy Commissioner for Personal Data (PCPD) conducted ten covert visits at six premises associated with the operation of the Worldcoin project.
On 31 January 2024, the PCPD entered these six premises with court warrants to conduct investigations. The premises were located in Yau Ma Tei, Kwun Tong, Wan Chai, Cyberport, Central, and Causeway Bay. Subsequently, two rounds of inquiries were conducted, and the investigation has now been completed.
More stories from the crypto ecosystem
Did you know?
As of May 2024, Bitcoin and Ethereum hold over 70% of the cryptocurrency market capitalization. Bitcoin held over 53%, while Ethereum held over 17%.
Status of 'Unicorn' implies a crypto company with a value of over $1 billion. 'Unicorn' term was first published in 2013, choosing the mythical animal to represent the statistical rarity of such successful ventures.
Bitcoins' supply has a hard limit of 21 million coins. Thus, no new Bitcoin will be released after the 21-million coin limit is reached.
Top 3 coins of the day
Near Protocol (NEAR)
Key points:
Near Protocol has received a boost from the latest NVIDIA profit statement, which has also positively influenced other similar A.I. coins in the market.
NEAR was among the top performers in the past 24 hours, experiencing significant gains.
What you should know - According to AMBCrypto's analysis of Near Protocol (NEAR), there was a more than 2% increase in value by the end of trading on 22 May. Reviewing the daily timeframe chart revealed that NEAR's price surged from approximately $7.7 to over $7.9, marking a 2.86% increase. This uptick was significant as it followed a 6.31% decline that brought the price down from about $8.2 to $7.7. As of the current writing, NEAR had regained the $8 price range with an increase of over 1%, trading at around $8.0. Another noteworthy observation is the potential formation of a strong support level indicated by the short Moving Average (yellow line). This yellow line acted as support around the $6.9 price level.
Pepe (PEPE)
Key points:
Pepe has emerged as the second-highest gainer in the last seven days, experiencing a remarkable increase of over 30%.
At press time, it was trading with a notable increase of over 8%.
What you should know - On 21 May, Pepe experienced a significant increase of 21.30%, driving its price to $0.00001384 and marking a notable shift that propelled PEPE to a new all-time high. However, on 22 May, the price movement hinted at a potential threat to this new status. Analysis of the daily timeframe chart revealed a decline of 3.32% on 22 May, with the price dropping to $0.00001338. Nevertheless, as of the current writing, Pepe has rebounded with an approximately 8.7% increase. This surge has propelled the price to around $0.00001450, reaching a new all-time high. Furthermore, analysis of its Relative Strength Index indicated a strong bull trend, with the RSI exceeding 80, at the time of writing.
Toncoin (TON)
Key points:
Toncoin experienced gains in the last 24 hours, but it could still land among the top losers in the seven-day timeframe.
TON was trading with close to a 1% decline at press time.
What you should know - Analysis of the Toncoin price movement on a daily timeframe chart revealed a lackluster trend over the past week. While there were some upward movements observed, they were insufficient to offset the declines experienced in recent days. By the end of trading on 22 May, TON had increased by 3.40% and was trading around $6.540. However, at the time of writing, it had dropped to approximately $6.4, representing a loss of almost 1%. This loss further perpetuated the pattern of alternating between uptrends and downtrends. Additionally, the stochastic indicator indicated a decline, confirming the poor price trend observed for TON. No imminent cross was detected on the indicator, suggesting that no significant price changes were anticipated in the near term.
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