Although bitcoin is under regulatory threat, Binance's BNB token rises to US$28,000

Following a brief break above US$29,000 on Thursday, bitcoin dipped in Friday morning trading in Asia but held above that level. Investors also took some profits from the recent rally as other top ten non-stablecoin cryptocurrencies traded mixed. Binance's native token BNB led the winners even though the Commodities Futures Trading Commission is suing the exchange for allegedly offering its products to Americans without authorization. As business readings pointed to a cooling economy, the Federal Reserve may ease back on its interest rate hikes, on the heels of signs that the banking turmoil is subsiding. Binance has denied the allegation. U.S. equities gained Thursday on signs that the banking turmoil is subsiding.  

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Facts To Know

• For the past seven days, bitcoin has gained 0.08%, according to CoinMarketCap data. Bitcoin dropped 0.40% to US$28,249 in the 24 hours to 9:00 a.m. in Hong Kong. It was the first time since June 2022 that the world's largest cryptocurrency traded above US$29,000 in about nine months.

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• Deribit, the largest Bitcoin and Ethereum options exchange in the world, will expire over $4 billion of Bitcoin options on Friday, adding to the volatility of Bitcoin and other cryptocurrencies over the weekend, Amberdata said on Wednesday. A stock option gives its purchaser the right to purchase or sell a particular asset by a specific date and price at a set price. Options are often used for hedging risks and speculation.

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• For the last seven days, Ethereum is down 0.28%, up 1.03% to US$1,806 on Tuesday.

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• The crypto exchange Binance's native token, BNB, led the winners despite the mounting regulatory issues the exchange faces in the U.S. It rose 1.4% to US$317.17 on Wednesday, though it fell 3.7% for the week. In the U.S. investigation into Binance U.S., Catherine Coley, a former executive, has hired a former CFTC official to represent her.

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• As of 12 a.m. ET, crypto market capitalization was US$1.18 trillion, down 0.15% from the previous 24-hour period. The volume of transactions increased 7.51% from 50.98 billion dollars to $50.9 billion.

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• As of 9:00 a.m. in Hong Kong, the Forkast 500 NFT index rose by 0.06% to 4,008.23, but has fallen by 2.88 percent since Tuesday. Forkast's sister company, CryptoSlam, manages the index, which includes 500 eligible smart contracts. It is a proxy for the performance of the global NFT market. 

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• Yehudah Petscher, an NFT strategist at CryptoSlam, explained that NFT investors have been waiting for a bridge between DeGods and the Ethereum blockchain, which would allow DeGods holders to move their tokens to Ethereum.

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• As the S&P 500 rose 0.57%, the Dow Jones Industrial Average gained 0.43%, and the Nasdaq Composite Index rose 0.73 percent, U.S. equities closed higher on Thursday.

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• A Bloomberg report on Friday said Federal Reserve lending to U.S. banks fell in the week ended March 29, signaling a stabilization of the U.S. banking system after several lender failures.

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• In the week ended March 25, U.S. jobless claims increased by 7,000 to 198,000, exceeding the 195,000 expected, CNBC reported on Thursday. According to the latest reports, the U.S. economy slowed during the last three months of 2022 because the gross domestic product (GDP) increased 2.6% instead of the forecast 2.7%. 

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• There are some indications the Federal Reserve may temper its interest rate hike policy this week, but the Federal Reserve's campaign to curb inflation may be further tested by Friday's U.S. Personal Consumption Expenditures Index.

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• A report by Reuters said Fed officials on Thursday said it may need more action to get annual inflation into its target range of 2% since inflation ran at over 6% on year in February. 

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• U.S. interest rates are currently running between 4.75% and 5%, the highest since 2007. CME Group analysts predict that the Fed will stand pat at their May 3 meeting, while 48.5% expect a 25 basis-point rise.

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• Stock futures moved higher on Friday morning as of 9:00 a.m. in Hong Kong, indicating that stocks will rise on Friday as well. The Dow Jones Industrial Average futures moved higher by 0.21 points, while the S&P 500 futures advanced 0.32% and the Nasdaq Composite Index rose 0.41%.