Markets
AI tokens outperform as crypto markets consolidate
RNDR, TAO and FET posted double-digit percentage gains last week.
Most digital assets will trade sideways on Tuesday in line with global markets.
Bitcoin, the world’s largest cryptocurrency, is trading at US$63,600 – practically stable over the last 24 hours. Ether (ETH) fell 0.3%, with Dogecoin (DOGE) falling 0.5%. Meanwhile, Solana (SOL) is up nearly 2% on the day.
Artificial intelligence (AI) tokens have rallied strongly, with Render Network (RNDR) up 40% in the last seven days. Other AI coins such as SingularityNET’s AGIX, Bittensor’s TAO, and Fetch.ai’s FET rose between 17% and 23%, outperforming the overall market.
Crypto hedge fund QCP Capital has seen renewed demand for September Bitcoin call options at strike prices of $75,000 and $100,000. “We are seeing some continued rise in volatility and [funding] rates after the reversal jumps from Friday to the weekend,” the company said in a note seen by The Defiant.
SEC Postpones Ethereum ETF
The SEC decision delaying Ethereum ETFs proposed by Invesco and Galaxy Digital may have caused Ether’s overnight plunge.
The ETF’s review period has been extended until July 2024 as the SEC seeks additional public comment and reviews regulatory considerations before it can be listed for trading on the Cboe BZX Exchange.
The SEC has been actively investigating the status of Ethereum following its transition from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) consensus mechanism. SEC Chairman Gary Gensler suggested that cryptocurrencies that allow staking could meet the criteria of the Howey test, which determines whether an asset constitutes a security.
Stock markets consolidate
On Tuesday, U.S. stock futures hovered near the flat line as the Dow Jones Industrial Average looked to extend its streak of four consecutive positive days.
Dow futures are up nearly 0.1%, while S&P 500 futures are slightly above flat. At the same time, Nasdaq 100 futures fell 0.1%.
Friday’s U.S. payrolls data revealed lower-than-expected job growth in April and a slight increase in unemployment. These results eased concerns about an overheated economy and raised investor hopes of rate cuts from the Federal Reserve.