Crypto Daily Digest: US House of Representatives passes Cryptocurrency Market Structure Bill; Taiko announces launch of TKO Airdrop eligibility verification page; Cardano's "centralization concerns" lead to a 30% drop in ADA price

First, let's look at the trading activities of Bitcoin ETFs. According to Farside Investor data, on May 22nd, there was a capital outflow of $16.1 million from Grayscale Bitcoin Spot ETF (GBTC); at the same time, there was a capital inflow of $74.6 million into Fidelity Bitcoin Spot ETF (FBTC) and $3.5 million into ARK 21Shares Bitcoin Spot ETF (ARKB).

The US House of Representatives passed the Cryptocurrency Market Structure Act.

On Wednesday, the United States House of Representatives passed the Republican-led Financial Innovation and Technology Act of the 21st Century (also known as FIT21) with 279 votes in favor and 136 votes against. The passage of this bill marks the first comprehensive encryption legislation to be voted on in the House, with 71 Democrats supporting the bill, including former Speaker of the House Nancy Pelosi from California.

FIT21 aims to regulate the entire cryptocurrency industry, empower the Commodity Futures Trading Commission with more authority and funding to oversee the cryptocurrency spot market and "digital commodities," especially Bitcoin. The bill also creates a process to allow secondary market trading of digital commodities that are offered "initially as part of an investment contract." Additionally, the bill includes provisions for stablecoins and anti-money laundering. While FIT21 is unlikely to be introduced in the Senate this year, the bill may lay the groundwork for the next Congress in January.

The director of government relations at the Blockchain Association, Ron Hammond, said that Congress' views on cryptocurrencies are changing. He believes that FIT21 is "a major turning point" and said, "The undeniable link between cryptocurrency voters and the upcoming elections seems to have finally made the Biden administration aware of the potential consequences of maintaining the status quo."

Before the FIT21 vote, the Senate and House of Representatives passed a measure to repeal the Securities and Exchange Commission's employee accounting notice, which established certain accounting standards for companies that custody cryptocurrencies. The resolution received support from some Democrats, including Senate Majority Leader Chuck Schumer of New York. However, the White House has indicated that President Joe Biden will veto the bill. On Wednesday, the White House expressed opposition to FIT21 but "eager to work with Congress" to establish a regulatory framework for digital assets.

Taiko announces the launch of TKO Airdrop eligibility query page

Based on the provided JSON object, the translation of the text from Chinese Simplified to English is as follows:

"Taiko, the Ethereum L2 network based on zkRollup, officially announced the launch of the first phase of the TKO airdrop on X platform in the early morning today and also released the airdrop eligibility query page. It is reported that the first phase will provide 5% of the initial token supply, and users will have 7 days to check their eligibility. After the eligibility check is completed, the claiming window will be opened, and eligible users will have one month to claim TKO."

TKO Airdrop application has not yet been launched. Please refer to the official release for participation and be cautious of related eyewash. According to the tokenomics model of TKO, the total supply is 1 billion tokens, with specific allocations including:

DAO Treasury accounts for 20%; Trailblazer Airdrop accounts for 10%; Genesis Airdrop accounts for a maximum of 5%; Liquidity and market makers account for 5%; Investors account for 11.62%; Taiko Labs/Core Team accounts for 20%; Taiko Foundation Reserve accounts for 16.88%; Taiko Official Prover Bonds account for 1.5%, and so on.

Cardano's "Centralization Concerns" Trigger a 30% Big Dump in ADA Price.

After analysts questioned the centralization of the Cardano network, the price of ADA plummeted. Cryptocurrency analyst Justin Bons stated that Input Output Global (IOG), the parent company of Cardano, controls 5 out of the 7 "genesis keys" of the blockchain. These keys were used to sign and establish the initial blocks of the Cardano blockchain as early as 2015.

The analyst pointed out, "The Genesis Key allows for seamless code updates without a hard fork." He added, "This means that IOG can halt the chain, modify emission schedules, conduct audits, and so on. This represents an unprecedented level of centralization for an L1 chain."

As of May 22nd, the price of ADA started to pullback after testing the upper trendline of the triangle pattern. Currently, by the end of May, the price will continue to decline to around $0.44, which is a 6.5% decrease from the current level. However, during this period of price adjustment, the supply of ADA held in whale addresses has slightly increased, indicating that the whales are not concerned about Charles Hoskinson's warning about the so-called centralization of Cardano.

Market Analysis: Short-term profit-taking in the market, long-term positive trend remains unchanged

✨ Market Trend

BTC: Bitcoin is trading sideways at a high level, temporarily falling below $70,000, possibly due to short-term profit-taking in the market. Nevertheless, the long-term trend for Bitcoin remains bullish, especially amid increasing global economic uncertainty.

ETH Spot ETF: Bloomberg analysts predict that its size may only reach 10% of the BTC Spot ETF. This forecast reflects the weaker confidence in Ethereum in the market, but it could also be a conservative estimate. Once the ETH Spot ETF is approved, market demand could increase significantly.

✨ Macroeconomics

US Stock Market Pullback: The Federal Reserve minutes suggest that interest rate cuts may not happen soon, which is a negative factor for the stock market. However, leading technology stock NVIDIA has outperformed expectations and reached new historical highs, indicating that technology stocks may continue to be a highlight in the market.

Cryptocurrency Market: The pullback in the US stock market may exert short-term pressure on the cryptocurrency market, but in the long run, funds may flow into higher-risk assets such as cryptocurrency to seek higher returns.

Market Hotspots

Meme Concept Coin:

1. PEOPLE, MAGA, WIF, BOME, MANEKI: PEOPLE and MAGA have shown strong performance under the promotion of the U.S. election concept. The Meme on Solana's face has also performed well, especially MANEKI, which rebounded more than 30% from its low point. With both U.S. presidential candidates being Meme-friendly, these Meme coins may continue to receive market attention.
2. Investment Strategy: In the short term, you can follow the volatility of these currencies, which is suitable for investors with a high risk preference. In the long term, it is necessary to be cautious of changes in market sentiment.

Other Hot Currencies:

1. EDU: Major shareholder Animoca Brands plans to buy back, which is a direct positive for the token price. It may continue to pump in the short term.
2. BNX: As a star project in the GameFi concept, the current round has seen a nearly 10-fold increase. It is important to note that such a high increase may trigger profit-taking.
3. HOOK: It is recommended to follow its subsequent development and market sentiment changes.

Layer2 Network Taiko:

1. Announce an airdrop of 5% tokens, mainly for Taiko users and the LRC community. Airdrop news generally brings short-term market excitement, but it is necessary to follow the market reaction after the airdrop.

AI Concept Coin:

1. LPT rose sharply, but other AI concept coins did not show significant gains. This may be due to the market's strong reaction to specific favorable information about LPT. It is recommended to follow the overall development trend of AI concepts and evaluate if there are other opportunities to ride the pump.

The current market is full of opportunities but also comes with risks. Investors should adjust flexibly based on their risk tolerance and market dynamics. For investors with a high risk appetite, it is recommended to pay close attention to Meme coins and GameFi concept coins, while for conservative investors, it is advisable to focus on long-term investment opportunities in BTC and ETH.

Macro: The release of the Federal Reserve meeting minutes led to an overall decline in the stock market; technology companies, represented by Nvidia, continue to perform well

On May 22nd, Reuters reported that the US stock market fell on Wednesday as investors digested the minutes from the latest Federal Reserve meeting. Semiconductor leader NVIDIA's revenue outperformed expectations, and the company's stock price rose by about 6% after the closing bell. This news also drove up the stock prices of other chip manufacturers.

NVIDIA's stock price has surged by nearly 240% in 2023 and has risen by about 90% this year. Investors are following closely to see if NVIDIA can meet the high expectations for its first-quarter performance, as well as whether the significant increase in AI-related stocks can be sustained.

The indexes fell: Dow Jones fell by 0.51%, S&P 500 fell by 0.27%, and Nasdaq fell by 0.18%.

Based on analysts' predictions from a Reuters survey, the closing price of the S&P 500 index this year may be close to the current level of 5,302 points, but a warning has been issued that the index's strong performance may indicate a future adjustment. The stock market's rise to a historical high this month is partly due to optimism in artificial intelligence, a stable earnings season, and renewed hopes for a rate cut by the Federal Reserve this year.

According to CME's FedWatch tool, the market expects a 59% chance of the Federal Reserve cutting interest rates by at least 25 basis points at the September meeting, lower than the 65.7% of the previous trading day.

The latest minutes of the Federal Reserve's policy meeting were more hawkish than expected, with the UK inflation report receiving much attention. The Reserve Bank of New Zealand has taken a cautious stance on New Zealand's inflation issues, leading investors to reduce their bets on the speed and scale of global interest rate cuts.

MSCI Asia-Pacific stock index fell 0.57%. The Australian S&P/ASX 200 was one of the largest decliners, falling 0.8%, due to a decline in commodity prices. The Hong Kong Hang Seng Index fell 1.5% after reaching a nine-month high earlier this week, as profit-taking occurred. The China Blue-chip Index dropped 0.3%.

The Nikkei Index in Japan hit its lowest level in more than three weeks, and the yen rose by 0.6%. The latest exchange rate for the yen against the dollar is 156.85.

Commodity-wise, oil prices have fallen, with Brent crude down 0.82% to $81.23 per barrel and U.S. crude slightly down 0.9% to $76.87 per barrel.

Author: Sherry S. & Icing. This article represents the author's views only and does not constitute any trading advice. This article is original content. The copyright belongs to Gate.io. Please indicate the author and source if you need to reproduce it, otherwise legal responsibilities will be pursued.