What to know: By Omkar Godbole (All times ET unless indicated otherwise) The outlook for bitcoin (BTC) looks bullish even after the largest cryptocurrency pulled back to $95,000 from Friday's highs above $98,000 and the total crypto market capitalization dropped under $3 trillion |
Among the signals, U.S.-listed spot bitcoin ETFs are rapidly absorbing supply. Last week, the 11 ETFs registered a cumulative net inflow of $1.8 billion, equating to over 18,500 BTC, six times more than the 3,150 BTC mined, according to data sources Farside Investors and HODL15Capital. (See chart of the day)
On-chain activity has also picked up, suggesting a bullish outlook. According to data source IntoTheBlock, the number of active BTC addresses topped 800,000 on Sunday, "While it is still far from its highs, the rebound signals a clear pickup in on-chain engagement; often a sign of renewed market demand," the firm said on X.
As for DeFi, the number of on-chain transactions involving wrapped bitcoin (WBTC) continues to rise, having doubled since January, indicating investor interest in bitcoin-backed decentralized finance.
Still, long-term holders may step up their selling as the price nears $100,000, potentially slowing rate of increase, analysis from Glassnode shows.
In ether's (ETH) case, data from CryptoQuant show that the number of ETH held by so-called accumulation addresses increased by 22% to 19.04 million ETH in two months. Ethereum is set to implement the Pectra upgrade on Wednesday to boost scalability, usability and validator efficiency, doubling the blob data capacity per block and lowering the costs for layer-2 protocols.
On the macro front, the Federal Reserve interest-rate decision is due this Wednesday. According to ING, the near-term inflation concerns, highlighted by survey data, limit the Fed's ability to ease and the central bank is likely to push back against the calls for rate cuts. The bank, however, said that the recent softening of the GDP suggests scope for easing in the second half. "Volatility is coming," PowerTrade said, pointing to the Fed decision, U.S. ISM services PMI and the Bank of England rate decision as catalysts this week. Stay alert! |
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Grayscale’s New Income-Focused ETFs
Grayscale, the world’s largest crypto-native asset manager, now offers two new income-focused ETFs: Through two different approaches to systematic covered call writing on Bitcoin, these two products deliver an alternative income stream for investors that’s less correlated to traditional income-oriented investments.
BTCC and BPI both offer monthly distributions for investors.* See the latest distribution amount on their respective product pages at etfs.grayscale.com Important Disclosures
*The Funds intend to pay out dividends from net investment income, if any, and distribute any net unrealized capital gains to their shareholders at least annually.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Funds, please call (866)-775-0313 or visit our websites at etfs.grayscale.com/btcc and etfs.grayscale.com/bpi. Read the prospectuses or summary prospectuses carefully before investing.
Investing involves risk and possible loss of principal. There is no guarantee the investment strategy will be successful. The Fund is considered to be non-diversified. The Fund is actively managed and its performance reflects the investment decisions that the Adviser makes for the Fund.
Grayscale Bitcoin Covered Call ETF (“BTCC”) and Grayscale premium Income ETF ("BPI") (collectively, the "Funds") will not invest in digital assets directly. The Funds also will not invest in initial coin offerings. The Funds will, however, have indirect exposure to digital assets by virtue of its investments in derivatives on exchange-traded vehicles that hold digital assets as investments. Because the Funds will not invest directly in any digital assets, they may not track price movements of any digital assets.
BTCC and BPI are distributed by Foreside Fund Services, LLC and Grayscale Advisors, LLC is the adviser. Foreside is not related to GSA or its affiliates. |
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Crypto: -
May 5, 11 a.m.: The Crescendo network upgrade goes live on the Kaspa (KAS) mainnet. This upgrade boosts the network’s performance by increasing the block production rate to 10 blocks per second from 1 block per second.
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May 6: Casper Network (CSPR) launches its 2.0 mainnet upgrade, introducing faster transactions, enhanced smart contracts and improved staking features to boost enterprise adoption.
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May 7, 6:05 a.m.: The Pectra hard fork network upgrade will get activated on the Ethereum (ETH) mainnet at epoch 364032. Pectra combines two major components: the Prague execution layer hard fork and the Electra consensus layer upgrade.
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May 8: Judge John G. Koeltl will sentence Alex Mashinsky, the founder and former CEO of the now-defunct crypto lending firm Celsius Network, at the U.S. District Court for the Southern District of New York.
Macro -
May 5, 9:45 a.m.: S&P Global releases (Final) U.S. April purchasing managers’ index (PMI) data.
- Composite PMI Est. 51.2 vs. Prev. 53.5
- Services PMI Est. 51.4 vs. Prev. 54.4
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May 5, 10 a.m.: Institute for Supply Management (ISM) releases U.S. April economic activity data.
- Services PMI Est. 50.6 vs. Prev. 50.8
- May 6, 9 a.m.: S&P Global releases Brazil April purchasing managers’ index (PMI) data.
- Composite PMI Prev. 52.6
- Services PMI Prev. 52.5
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May 7, 7 p.m.: The Federal Reserve announces its interest rate decision. The FOMC press conference is livestreamed 30 minutes later.
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Federal Funds Rate Target Range Est. 4.25%-4.5% vs. Prev. 4.25%-4.5%
Earnings (Estimates based on FactSet data) -
May 6: Cipher Mining (CIFR), pre-market, $-0.07
- May 8: CleanSpark (CLSK), post-market, $-0.01
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May 8: Coinbase Global (COIN), post-market, $2.08
- May 8: Hut 8 (HUT), pre-market
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May 8: MARA Holdings (MARA), post-market
- May 13: Semler Scientific (SMLR), post-market
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Uniswap DAO is voting on whether to pay Forse, a data‑analytics platform from StableLab, $60,000 in UNI to build an “analytics hub” that tracks how incentive programs are working on four more blockchains. Voting ends on May 6.
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Arbitrum DAO is voting on whether to put the last $10.7 million from its 35 million ARB diversification plan into three low‑risk, dollar‑based funds from WisdomTree, Spiko and Franklin Templeton. Voting ends on May 8.
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May 5, 4 p.m.: Livepeer (LPT) to host a Treasury Talk session on Discord.
- May 6, 1:30 p.m.: MetaMask and Aave to host an X Spaces session on USDC supplied to Aave being spendable on the MetaMask card.
- May 7, 7:30 a.m.: PancakeSwap to host an X Spaces Ask Me Anything (AMA) session on the future of trading.
- May 7, 11 a.m.: Pendle to host a Pendle Yield Talk: Stablecoin Alpha X Spaces session.
- May 8, 10 a.m.: Balancer and Euler to host an Ask Me Anything (AMA) session.
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- May 7: Kaspa (KAS) to unlock 0.56% of its circulating supply worth $13.59 million.
- May 9: Movement (MOVA) to unlock 2.04% of its circulating supply worth $9.85 million.
- May 11: Solayer (LAYER) to unlock 12.87% of its circulating supply worth $88.46 million.
- May 12: Aptos (APT) to unlock 1.82% of its circulating supply worth $58.36 million.
- May 13: WhiteBIT Coin (WBT) to unlock 27.41% of its circulating supply worth $1.13 billion.
- May 15: Starknet (STRK) to unlock 4.09% of its circulating supply worth $17.02 million.
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- May 5: Sonic (S) to be listed on Kraken.
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May 7: Obol (OBOL) to be listed on Binance, Bitget, Bybit, Gate.io, MEXC, and others.
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