The sudden surge of meme coins within a few weeks could be a significant sign of a potential peak in the market. $BTC slipped to 1-month lows and $ETH fell below $1,800. Trading activity dropped and large market makers pulled out of the US crypto market. The spotlight of the market shifted towards Bitcoin-related activities, including Ordinals and BRC-20 tokens. Additional utility on top of the Bitcoin network was something developers and miners have been seeking for a long time. The recent lower-than-anticipated CPI numbers barely helped the markets, and the investors were uncertain about the regulatory path forward.
The market continued its indecisive move. Although the lower-than-expected CPI print initially pushed BTC and ETH to re-test 28,000 and 1,900 levels, bulls quickly ran out of steam - BTC and ETH both posted negative performance for the week. Short and mid-dated skew moved further up to favor puts whereas long-term skew still implies cautious optimism on the upside. The consolidation phase with signs of resilience is additionally supported by IVs being traded at near historical lows and little volatility premium from ETH over BTC.
The major U.S. stock indexes experienced little movement last Monday and decreased on Tuesday as investors waited for critical inflation data and concerns surrounding the U.S. debt ceiling to impact the markets. However, rallies in both U.S. bonds and stocks occurred Wednesday after fresh inflation figures were released, showing continued cooling for the 10th consecutive month. In April, the consumer-price index increased by 4.9% from a year ago, slightly lower than March's 5% increase, and up 0.4% for the month, in line with economists' predictions. Nevertheless, the S&P and Dow ended the week on a decline, posting their second straight weekly loss because of regional bank concerns and rising consumer inflation expectations revealed by survey data.