Crypto Daybook Americas: Ye Adds to Memecoin Turmoil as Broader Market Languishes

From coindesk By Francisco Rodrigues, Oliver Knight| Edited by Sheldon Reback

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By Francisco Rodrigues (All times ET unless indicated otherwise)

Cryptocurrency prices are rising after the U.S. Securities and Exchange Commission’s former crypto enforcement unit  transitioned into the Cyber and Emerging Technologies Unit  and amid dovish comments from Atlanta Fed President Raphael Bostic.

Renaming the Crypto Assets and Cyber Unit is significant because it shows the agency is moving away from its crypto focus that often led to  accusations of regulation by enforcement and legal battles with major industry participants.

“In the near to medium term, clearer regulations will likely boost institutional participation, leading to improvements in market infrastructure,” BackPack founder and CEO Armani Ferrante told CoinDesk. Bitcoin is now above $98,000 after adding 1.2% in 24 hours, while the broader CoinDesk 20 Index rose 1.35%.

Yet, volatility is still  relatively low . "These environments may feel slow and frustrating, but they rarely persist for long — volatility tends to mean revert,” Wintermute OTC trader Jake O told CoinDesk.

With tensions between the U.S. and its European allies growing, investors are hoping Germany's election on Sunday will lead to a stable coalition government that will push out economic reforms to stimulate growth and boost defense spending. Germany is Europe’s largest economy and a positive result could lead to a more risk-on approach.

Open interest has already moved up ahead of the election. Still, the crypto market  lacks positive catalysts  in the near term, JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report.

In fact, the market is nearing backwardation — where spot prices rise above futures prices — in a “negative development” that’s “indicative of demand weakness” by institutional investors using regulated CME futures contracts to gain exposure to the market. Stay alert!