Market Report - 2 May 2023

Overview

In 2023, we saw U.S. history's second and third largest bank failures. With the stock of First Republic Bank dropping by more than 50% in a single day, it appears that this bank will also fail. Such an unusual occurrence would indicate that three of the top five bank failures in U.S. history occurred within four months of each other. This concerning trend coincides with the Federal Reserve rapidly boosting interest rates at an all-time high. Some economists believe the Fed will pause or even begin cutting rates by the end of the year.

GDP growth rate QoQ increased by 1.1% vs 2% consensus vs 2.6% in the fourth quarter. Despite a surge in consumer spending, the U.S. economy grew slower than expected in the first quarter, partly due to businesses emptying inventories in expectation of weaker demand and higher borrowing prices later this year.

Bitcoin has experienced four consecutive months of growth, with 73%year-to-date (YTD) gains. Historically, this trend has never led to new lows, indicating that the Bitcoin bear market may be over.

Bitcoin Price Analysis

The cryptocurrency market is experiencing a tough time as Bitcoin faces multiple rejections at the 30k level. Furthermore, the market structure is showing lower highs, indicating a bearish trend. Despite this, Bitcoin seems to be regaining strength against other cryptocurrencies, known as "Alts." This shift suggests that investors may be favoring Bitcoin once again, possibly due to its established reputation and larger market capitalization.

However, it remains to be seen whether Bitcoin can break through the 30k resistance level and establish a sustained uptrend.

Ethereum Price Analysis

Ethereum (ETH) is experiencing a bearish trend as its uptrend appears to be reversing. The price of ETH has failed to create a higher high, indicating a potential trend reversal. Additionally, ETH is currently losing market capitalization, which suggests that investors may be moving their funds into other cryptocurrencies or assets. It remains to be seen whether Ethereum can reverse this trend and regain investor confidence in the coming months.

Disclaimer

This material is for general information and is not investment advice, a recommendation, or solicitation to buy and sell any cryptocurrencies, digital assets, securities or derivative instruments, or to make any investments. Mobee is under no obligation to update this report based on information and events that occurred after this report was created and published. Any suggestions or recommendations in this report may not be appropriate for certain users.