Good morning. Here’s what’s happening:

Bitcoin prices: Bitcoin fell below $27K on the second day in a row. Investors are waiting and watching.

Insights Bitcoin has taken a break despite mildly positive data on jobs and prices this month.

Bitcoin Falls Below $27K Once Again

Bitcoin fell for the second day in a row to levels below $27,000, but it remained within its range of weeks. Investors ignored positive employment and price data as well as the latest banking crisis. They continued to wait for a price catalyst.

In the last 24 hours, BTC was trading at $27,052, a drop of 1.8%. BTC fluctuated between $25,000 to $30,000 all spring. Analysts believe that it will remain there until it has a compelling reason to move higher or lower.

Katie Talati is the head of research for blockchain asset management company Arca. She told CoinDesk TV that “price response to macro data was not as significant” in recent weeks. “I think that, like in equities markets, most people feel as though macro movements are already baked into the price. What we’ve seen over the past 24 hours is largely due to digital assets.

Ether traded at around $1,800 on Wednesday. This is down about 1.9%. In recent weeks, the second-largest crypto by market value also remained mostly rangebound, despite the successful Ethereum Shanghai upgrade in early April, which finished the blockchain’s switch from proof-ofwork to a more energy-efficient proof-of stake protocol.

Pepecoin memes were fading less than a month after they reached a staggering $1.8 billion in market capitalization. The data from Nansen revealed that as of late morning on Thursday (ET), the “smart-money” wallets, which are crypto accounts owned by individuals or institutions known for making profitable trades, had reduced their PEPE stock by $3 million over the last 24 hours.

Talati stated that the team behind PEPE had “done a great job in marketing the token and really creating a lot buzz around it.”

She added, “These tokens are more popular when this area is quieter. These are the easiest to access. Many newer crypto enthusiasts like to trade these.”

Other major cryptos also suffered a lot of losses. The CoinDesk Market Index was down by 2.4%.

The Dow Jones Industrial Average and S&P500 fell slightly, but the tech-heavy Nasdaq rose a fraction of percentage points. After Los Angeles-based PacWest Bancorp announced that it lost over 9% of its deposit last week, the banking sector fell. PacWest’s recent problems were a distant memory for crypto investors.

Talati, from Arca, was positive about DeFi. She said, “There is definitely a lot going on in DeFi.” “I’ve highlighted in the last few months, a lot development on certain projects such as Curve and Aave. Both have launched (or are) launching their stable coin.”

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Bitcoin takes a breather

Alex McDougall of Stablecorp said in an interview with CoinDesk TV on Thursday that Bitcoin is taking some time to “breather”. Investors are pondering a mini wave of positive jobs and price data.

Bitcoin’s value has fallen from a high of $31,000 two weeks ago to a low of $27,000 on Wednesday after the markets were spooked due to an unfounded rumor claiming that the U.S. Government was planning to sell $320 million worth in bitcoin. In recent weeks, the largest crypto by market value has seen its price fluctuate. There was no compelling reason for it to leave a range that lasted weeks.

McDougall’s firm, which provides financial products powered by blockchain technology, said that “interest rates have fluctuated a bit.” “The decoupling of the tech stock narrative from risk is fascinating. You can see the market flip between narratives when there are multiple competing narratives at any given time. Is this a hedge against the doomsday scenario? Is it your risk-on investment? “Is the banking industry dying?”

He said “This seems to be an opportunity to breathe deeply – many people are taking profits after being underwater for a while, and an opportunity for accumulation.”

McDougall said that the congestion caused by meme pools on the bitcoin network – which led Binance, a major exchange, to suspend withdrawals two times over the weekend – had raised questions about the blockchain’s capacity to handle the additional volume generated from NFT-like ordinals. He said there are “known issues, and scaling is always a part of this trilemma,” “when those things start to appear, it’s very easy to say that we’re overhyping the situation.” Let’s calm down a bit.

He added that a major issue for the crypto industry remains liquidity. He said that while the crypto industry was not a healthy one, it did have global liquidity connectivity. “Now you can see the fracture, global assets are not moving as easily across borders and these liquidity plugs have started to disconnect.”

He was optimistic about the future of bitcoin. He said that “a lot of these are just natural growing pains” and added: “How can you not be optimistic?” The long-term benefits of this technology are obvious, but the road to get there will not be easy.

Important events.

CoinDesk TV

If you haven’t seen it yet, here’s the latest episode of “First Mover” on CoinDesk TV.

Bitcoin (BTC), which was trading at $27,500 in April, has dropped below that level. Katie Talati, Arca’s head of research, shared her analysis on the crypto market. Timothy Massad (former CFTC Chairman and Kennedy School of Government Research Fellow at Harvard University) also discussed the future of U.S. cryptocurrency regulation after a House joint hearing on the future of digital currencies held Wednesday. Gary Lachance, an early Dogecoin supporter, discussed the rise in the meme economy.

CoinDesk turns 10 – 2020: Rise of the Meme Economy : While the world was locked down for COVID meme-assets such as Dogecoin, and Disaster Girl captured the attention of younger retail investors. Three years on, memes continue to drive value in financial markets. This article is part of the “CoinDesk Turns 10 series”.

Bitcoin prices retraced as traders with varying time horizons jockeyed for position: More long-term holders remain resilient. Bitcoin super whales deserve attention as they recently reduced their positions.

What is the reality of crypto in crime? Eun Young Choi, DOJ, said that the agency constantly finds crypto connections during its criminal investigations. How deep is the problem and to what extent should we put the blame on the blockchain?

“Smart Money” Traders Reduce Pepecoin Holdings By $3M As Meme Coin Mania Cools Down: The PEPE token is down 66% from last week when it had a market capitalization of $1.8 billion after an incredible rally.

James Rubin is the editor.