Liquid Staking Leads Market Higher, LTC Breaking Out
May 15, 2023
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Market Update Bitcoin ($BTC) and the broader crypto market are staging a recovery after a week of bearish price action, with altcoins facing particularly excessive pressure. Bitcoin has successfully bounced off its key 200-week moving average around $25,800 and is now hovering around $27,400. Ethereum ($ETH), meanwhile, remains stable above the $1,820 level. Notable standout performers include altcoin $LDO, up 12% on the day, potentially driven by improved withdrawal capabilities and short covering. Outperformance from $RPL and $FXS are also worth noting, as they are likely benefitting from the increasing number of Ethereum holders transitioning from centralized to liquid staking solutions. Litecoin ($LTC) is also showing relative strength, up 5% on the day, possibly due to investors starting to position for the network's upcoming halving (more from Mark on LTC technicals below). Legacy equity markets are relatively unchanged as investors assess the risks associated with the potential debt ceiling impasse. The $NDQ is up 30 basis points, while the $SPX trades 5 basis points lower. In the fixed-income realm, bond volatility, as indicated by the $MOVE index, has returned to a level of 120, reaching its lowest point since mid-April.Last week, Ethereum's beacon chain experienced two