Good morning. Here’s what’s happening:

Prices: Prices have fallen in East Asia after the post-debt limit rally. Bitcoin and ether are now declining. What is the next narrative in crypto?

Insights Recent Commitment of Trader reports show a rebound among asset managers in their open long positions.

Searching for the Next pricing Narrative

by Sam Reynolds

Good morning Asia

The rally yesterday after the debt ceiling deal has ended.

Bitcoin has begun the East Asia trading day with a 1.3% decline at $27 746, while ether has fallen 1.1% to $1 893.

The crypto industry has been struggling with narrative problems in the past few weeks. There is no clear narrative about crypto – does it represent a risk asset or a hedge? Price swings are random and investors are confused.

Some may say that, for example, bitcoin should have increased on the uncertainty of debt ceilings, since a U.S. failure would have shaken up the traditional financial system. Bitcoin behaved like a stock. Crypto’s Narrative may not be a narrative at all.

Ed Moya is a Senior Analyst at OANDA’s foreign exchange market. He believes that the U.S. elections are the story to follow.

In a Friday note, Moya reminded us that Bitcoin’s future in the US could be determined by the outcome of the presidential election. “Florida Governor Ron Desantis has announced that he will run for President and is ready to ‘protect Bitcoin’.”

The next logical step is to bring Central Bank Digital Currencies on the national stage. Crypto has been mentioned in many elections around the world, including South Korea, Thailand and President Joe Biden while discussing debt negotiations.

This is the story you should watch.

The Biggest Gainers

Biggest Losers

Funding rates remain positive in Crypto markets

By Glenn Williams Jr.

Commitment of Traders shows that asset management firms have increased their long-term open positions in bitcoin following a decline in the previous two weeks. The increase of 24 contracts follows a decrease of 162 in the previous week.

Long- and short-positions among asset managers (based upon Commitment of Traders Report)

The increase appears to stop what was more of a general reduction in exposure rather than a comment on the price itself. Over the same time period, asset managers also reduced their short positions by 194 contracts.

The Commodity Futures Trading Commission releases weekly COT data, which details the open interest of asset managers, leveraged fund, and dealer intermediaries, in bitcoin futures.

Asset managers now account for 48.9% open long positions at the Chicago Mercantile Exchange and 97.25% of the assets as a whole.

Important events.

The European Commission’s business climate for May

10 p.m. HKT/SGT(2 p.m. UTC): U.S. Consumer confidence (May).

CoinDesk TV

If you haven’t seen it yet, here is the latest episode of The Hash on CoinDesk TV.

The hosts of “The Hash,” weighed in on some of the most important stories shaping the crypto world today. As staking eats away at ether, the number of ether on exchanges has dropped to a level not seen since July 2016. Separately, the potential sign that good-economic-news-equals-bad-news for digital asset prices narrative is beginning to shift. Adam Moskowitz joined “The Hash”, the lawyer for some FTX investors to discuss Shaquille o’Neal, basketball legend, being served with a class-action lawsuit regarding FTX, its celebrity endorsements, and FTX.

Dogecoin chart pattern suggests volatility explosion ahead: Bollinger bandwidth, a technical analysis indicator, suggests dogecoin’s unusual calm may soon be over with a strong move in either direction.

Gemini and Bankrupt Lender Genesis ask U.S. Court dismiss SEC lawsuit targeting Earn Program: According to the U.S. Securities and Exchange Commission, both entities sold unregistered shares through Gemini Earn.

Bitcoin Short-Term Holders are Again Selling at Profits: According to one observer, the renewed profitability of short-term holders is a good sign for the near-term price movement.

Fantom will pay back 15% of token fees to some projects: This move is part an initiative to increase demand for block spaces, which helps add value to FTM tokens.

Shiba-themed Floki sees trading volume surge amid China plans: The Floki price rallied on Monday, amid a market push led by bitcoin and bets placed on the token’s China narrative.

James Rubin is the editor.