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Bitcoin (BTC) started the U.S. trading week on a positive note, surging above $27,000 after dipping as low as $25,800 on Friday.

Recent CoinCryptoUs data indicates that the largest cryptocurrency by market capitalization is currently trading at approximately $27,350, reflecting a gain of roughly 1.6% within the last 24 hours. Following a decline below $26,000 on Friday, bitcoin had been fluctuating below the $27,000 level until late Sunday.

Bitcoin price chart showed that the cryptocurrency's price rose to $27,350 Monday afternoon.

Edward Moya, senior market analyst at foreign exchange market maker Oanda, suggested in a Monday note that upcoming debt ceiling talks will “tell us a lot if investors believe bitcoin can behave more of a safe-haven despite all the regulatory uncertainty."

“Bitcoin seems poised to stay in a range, but if risk aversion triggers a de-risking moment, we could see selling pressure extend below last week’s low,” Moya wrote.

Ether (ETH), the cryptocurrency with the second-largest market capitalization, experienced a modest increase of over 1% on Monday afternoon, reaching a price level of approximately $1,830. In the realm of other digital assets, LDO, the governance token associated with the liquid staking platform known as Lido, witnessed a significant surge of 11%, trading at $2.15. Furthermore, The Graph's GRT token, which represents an indexing protocol, recorded an impressive leap of more than 12%, settling at a trading price of $0.12.

The CoinDesk Market Index (CMI), which serves as a gauge for the overall performance of the cryptocurrency market, recorded an increase of approximately 1.8% over the course of the day.

Investors have been evaluating the recent lack of liquidity in cryptocurrency markets, as market makers Jane Street and Jump Crypto withdrew from crypto trading in the United States last week due to regulatory uncertainties. According to a report by crypto data firm Kaiko on Monday, BTC's 1% market depth, which measures liquidity conditions, declined by 4% over the past month, while ETH's dropped by 2%. Altcoin liquidity experienced an even more significant decline, down approximately 17% on a monthly basis.

“Due to the dire state of the stock market, institutional and professional investors no longer have access to the excess liquidity they would usually allocate to invest in the crypto market,” Sheraz Ahmed, managing partner at blockchain consultancy Storm Partners, told CoinDesk.

Equity markets displayed positive momentum on Monday, as the S&P 500 recorded a 0.3% increase, while the technology-focused Nasdaq narrowly missed the 0.7% mark. The Dow Jones Industrial Average (DJIA) also advanced, albeit modestly, with a 0.1% gain.

Within the bond markets, the 2-year Treasury yield note remained relatively stable at 4.00% on Monday, while the 10-year Treasury yield experienced a 3 basis point increase, reaching 3.50%. Greg Cipolaro, the global head of research at NYDIG, an investment firm focused on Bitcoin, highlighted in a research note on Friday that yield curve inversions, similar to the current situation, have historically signaled an impending recession within the next 12 months.

Investors across various sectors will closely monitor several economic indicators this week to gauge any signs of a potential slowdown. These indicators include the monthly retail sales and housing data in the United States.

“Recessions are inevitabilities of the economic cycle, and while predicting them is no easy feat, how markets and asset prices respond will likely be determined by the fiscal and monetary response to the slowdown,” Cipolaro wrote. “Risk assets are already well off their highs, so there is reason to believe that a recession might not be as deleterious to financial markets given that we have already come through a significant correction,” he added.

Source Coindesk