Daily Crypto Signals: Bitcoin Consolidates While XRP Surges

The crypto market is currently influenced by external political pressure from US President Trump on the Federal Reserve and internal shifts

The crypto market is currently being influenced by both external political pressure, such as US President Trump’s statements on the Federal Reserve and an impending return to the White House to continue his political agenda, and internal shifts in investor focus.

Investors appear to be increasingly turning their attention to memecoins and AI tokens, a trend that is likely to continue in the coming months. This is a significant development, as it could have a major impact on the performance of various cryptocurrencies.

Bitcoin is Consolidating Around $84,000 as Technical Signals and ETF Data Conflict

Bitcoin (BTC) has been exhibiting signs of consolidation in a limited price band since April 11th, with its price ranging from a low of $82,750 to a high of $85,440.

However, despite this consolidation, there are some interesting developments unfolding in the BTC market.

According to Glassnode’s latest data, Bitcoin’s realized market capitalization recently attained a new all-time high of $872 billion. Nevertheless, the monthly growth rate of this indicator has been steadily decreasing, which might indicate a prevalent risk-off sentiment among market participants.

This diminished growth in realized market capitalization suggests that less capital is flowing into Bitcoin or that the activity levels of existing holders are declining. Furthermore, an analysis of Glassnode’s realized profit and loss (P&L) chart over the past month showcases a staggering 40% reduction in realized profit.

This substantial decline in profit might indicate significant profit-taking activity or, alternatively, a realization of losses by investors.

Currently, Bitcoin’s realized price stands at $91,600, which is considerably higher than the coin’s present trading price. This positioning implies that short-term Bitcoin holders are currently "underwater." If these holders decide to liquidate their positions to cut their losses, it could potentially exert selling pressure on the coin.

On a related note, American and Korean Bitcoin traders appear to be displaying different behaviors. In a reflection of U.S. trading volume, the Coinbase premium has been increasing recently.

This uptick in premium suggests strong demand from American investors, which might foreshadow further increases in Bitcoin’s price. Conversely, the Kimchi premium index has decreased during the most recent Bitcoin price corrections.

This decrease in Kimchi premium implies a reduction in retail investor activity from Korea, and it remains to be seen how this will impact the broader market in the long term.

Hong Kong Launches Second ETH Staking ETF

In other developments, the Ethereum (ETH) ecosystem is showing signs of progress, particularly in the area of exchange-traded funds (ETFs).

Good news for crypto investors in Hong Kong as Huaxia Fund is preparing to launch staking services for its Ether ETF on May 15, the second such offering in the city-state.

For the new product, OSL Digital Services will provide staking and custody infrastructure.

This development follows the Hong Kong Securities and Futures Commission’s (SFC) ruling on April 7 that permits companies, including centralized exchanges, to provide crypto staking as part of a broader initiative by the city-state to establish itself as a Web3 leader.

The SFC granted approval for the service in a statement, where it recognized the “potential benefits of staking in enhancing the security of blockchain networks and allowing investors to earn yields.”

Earlier this month on April 10, in a groundbreaking move, the SFC greenlit Boston Elite (HK) to provide staking services for Mainland China-based asset manager Harvest’s Bitcoin ETF, which commenced trading in April 2022, making it the first such offering in the Asia-Pacific region.

Also, in March, the SFC granted approval for Harvest to launch the first two crypto ETFs in Hong Kong, focusing on Bitcoin and Ethereum.

These approvals followed a consultation period in 2022, during which the SFC proposed new rules to permit the launch of crypto ETFs in Hong Kong.

The new generation of ETH ETFs in the U.S. will be capable of offering staking services, which is a crucial factor as it allows ETH ETF holders to benefit from compound growth, with the yield from staked Ether being reinvested into the financial instrument.

According to Coinbase data, ETH stakers are now realizing an average 365-day average yield of approximately 2.14%.

The introduction of staking for ETH ETFs in the U.S. has been a subject of discussion and anticipation. Asset manager BlackRock (NYSE:BLK) recently highlighted the fact that the ETH ETFs are “less perfect without staking.”

Earlier this year, industry forecasts suggested that the approval of ETH ETFs would be more likely under the Trump administration, given its crypto-friendly stance.

In a significant development, both the CBOE and NYSE have filed applications with the SEC for modifications to the rules that would permit staking in their ETH ETFs. These filings are part of a broader effort