Crypto Market

BTC and ETH Market Insight

Financial markets faced risk-off sentiment ahead of the Fed's interest-rate decision and press conference earlier this week. $BTC has fallen by 5.7% to $57,668, dropping below the $60,000 mark. This decline is part of a larger market downturn, widely regarded as the most severe since the FTX crash.The Fear and Greed index drops to "fear" for the first time since October. The Fed left rates unchanged for the 6th straight meeting. The Bitcoin spot ETF experienced a total net inflow of $378 million on Friday, marking the first inflow after seven consecutive days of outflows.

Options Market

Crypto markets had a nice rebound from the pre-FOMC weakness with equities following a weaker-than-expected U.S. non-farm payroll report, which weakened the dollar and raised the likelihood of a rate cut in September. The implied volatility remained rather steady -1-month BTC IV stayed below 55 handle and ETH below 65, even though the realised volatility had risen. The market seems to be bracing for a summer slowdown in market activity. Skew, on the other hand, drifted back to favour calls. BTC & ETH options volume decreased, notable flows were short-dated put buying activity in May expiries to hedge downside and selling of longer term calls.

Altcoins and Blockchain News

• The judge in the CZ case officially sentenced a 4-month prison term.

• Layerzero announced on May 2 that Snapshot#1 has been completed and more information will be released soon.

• On May 3th (GMT+8) , friend.tech opened FRIEND airdrop claims, with FRIEND currently trading at $3.06 USD.

• According to DefiLlama data, the EigenLayer TVL liquidity restaking protocol has surged past $15.4 billion USD, currently standing at $15.47 billion USD.

• According to Dune data, decentralized social protocol Farcaster's total revenue has exceeded $1.2 million USD, currently at $1,229,371 USD.

• Token Unlocks data shows that next week, tokens such as MAVIA, HFT, GLMR will be unlocked. Specifically, Heroes of Mavia (MAVIA) will unlock approximately 7.66 million tokens on May 6, accounting for 24.29% of the circulating supply.

• According to L2BEAT data, Mode Network TVL has reached $585 million USD, with a 7-day increase of 32.58%.

• The Blob team is engraving runes on Bitcoin halving blocks, leading to an increase in NFT floor price.

• BounceBit will launch its mainnet and airdrop BB tokens to eligible wallets on May 13.

Macro

Last  week started with a 15% surge in Tesla's stock, which helped extend the market rally. Despite hotter-than-expected inflation data raising doubts about interest-rate cuts, stocks continued to gain. However, Tuesday saw stocks plummeting, with all 11 S&P 500 sectors ending the day in the red. On Wednesday, the Federal Reserve's decision to hold rates steady and the release of fresh data on worker compensation suggested that the Fed's campaign to lower inflation still has a way to go. Thursday saw technology shares leading the stock indexes higher ahead of a key jobs report. Friday's jobs report signaled that the pressure is easing in the labor market, fueling a rally that lifted all three major stock indexes to weekly gains.