Last week, after a brief rally following another release of decreasing CPI number (4.9% over the last 12 months which is lower than expected) in the US, the Nasdaq Crypto IndexTM (NCITM) fell 6.5%, with bitcoin (BTC) experiencing a 6.9% correction and ether (ETH) outperforming in relative terms with a weekly decrease of 5.9%. This performance takes May into negative territory after a four-month positive streak. The price correction may have been an effect of decreased liquidity in crypto markets caused by the news that two of the largest crypto market makers will step back from the sector due to a lack of regulatory clarity.

 

 

Bitcoin falls below $27,000 as US regulatory crackdown pressures crypto's biggest market makers

 

Jane Street and Jump Trading, two prominent cryptocurrency trading firms, have scaled back their activities due to increased regulatory scrutiny in the United States. This demonstrates that regulatory challenges can affect larger institutions too, and investors should be prepared for potential shifts in trading strategies, impacting liquidity and market sentiment.

 

MetaMask introduces “Buy Crypto with Paypal”

 

MetaMask, Web3’s flagship digital wallet, just added PayPal as a payment option for US customers in its “buy crypto solution,” allowing users to purchase ETH and other currencies through the traditional digital payment service. This integration shows continued effort of bringing traditional services into crypto, easing the access of users to the digital asset space.

https://metamask.io/news/latest/metamask-and-paypal-all-you-need-to-know-about-buying-eth/ 

 

Number of validators on Ethereum resumes its uptrend

 

After three flat weeks post-Shanghai, the number of active validators on Ethereum has started going back up. This is a much expected consequence of the fact that, after the upgrade, ETH may now be unstaked, implying that investors can deposit their holdings in exchange for an annual yield with the confidence that this allocated capital can be redeemed back later on. As of writing, almost 50,000 validators are on the entry queue for Ethereum staking, while the backlog for validators exiting the network’s validation set is below 10 validators.

 

Texas embraces greener Bitcoin mining with approval of flare gas emission bill

 

The Texas House and Senate have passed House Bill 591, paving the way for Bitcoin miners to use flare gas emissions. The bill “clarifies” the sale of flare emissions for use by mobile data centers, often including Bitcoin miners, lowering the cost of using this type of excess energy from oil and gas extraction. This news reassures the idea of using Bitcoin mining as a means to mitigate greenhouse gas emissions, repurposing energy that would otherwise be wasted.

https://cryptoslate.com/texas-embraces-greener-bitcoin-mining-with-approval-of-flare-gas-emission-bill/

 

Binance pauses Bitcoin withdrawals, blames network congestion

Early last week, Binance temporarily paused Bitcoin withdrawals citing network congestion. This decision comes amidst increased transaction activity and congestion on the Bitcoin network. The average Bitcoin transaction fee was near its highest point in almost two years. As mentioned on last week’s Hash insider, Bitcoin network activity has surged after the introduction of NFT projects and BRC-20 token on its network. This event highlights the importance of maintaining a safe custody of crypto assets to mitigate risks associated with centralized institutions.

https://decrypt.co/139228/binance-pauses-bitcoin-withdrawals-blames-network-congestion

 

From Hashdex:

 

On Wednesday, join CF Benchmarks CEO, Sui Chung, and our CIO, Samir Kerbage, for an enlightening conversation regarding the investment case for crypto, the wider digital asset class, and emerging trends in this space. You can register here. 

 

What to watch this week:

 

Investors will keep an eye on US retail sales on Tuesday and Fed Chairman Jerome Powell will be on a panel with former chairman Bernanke on Friday.

 

 

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