News
AI Tokens Outperform as Crypto Markets Consolidate
RNDR, TAO, and FET have seen double-digit percentage gains over the past week.
Most digital assets are trading sideways on Tuesday, in line with global markets.
Bitcoin, the world’s largest cryptocurrency, is trading at $63,600, more or less unchanged over the last 24 hours. Ether (ETH) loses 0.3%, while Dogecoin (DOGE) loses 0.5%. Meanwhile, Solana (SOL) is up nearly 2% on the day.
Artificial intelligence (AI) tokens have seen a strong recovery, 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, rallied between 17% and 23%, outperforming the overall market.
Crypto hedge fund QCP Capital has noticed renewed demand for September Bitcoin call options at strike prices of $75,000 and $100,000. “We are seeing some bullish consequences of volatility and [funding] rates after the rebound reversal from Friday through the weekend,” the firm said in a note seen by The Defiant.
SEC Delays Ethereum ETF Spot
Those of the SEC decision to delay Ethereum spot ETFs proposed by Invesco and Galaxy Digital may have caused Ether’s overnight decline.
The review period for the ETF has been extended until July 2024, as the SEC seeks additional public comments and examines 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
U.S. stock futures held near the flat line on Tuesday as the Dow Jones Industrial Average aimed to extend its streak of four consecutive positive days.
Dow futures rose nearly 0.1%, while S&P 500 futures held just above steady. At the same time, Nasdaq 100 futures fell 0.1%.
US payrolls data released on Friday revealed weaker-than-expected job growth in April and a slight rise in unemployment. These results eased concerns about an overheated economy and raised investor hopes for rate cuts by the Federal Reserve.