The “Crypto winter” was blammed for a staggering 50% reduction in attendance at the Bitcoin 2023 conference in Miami.
Renowned speakers such as U.S. presidential candidate Robert F Kennedy and The Big Short’s acclaimed author Michael Lewis participated in the just concluded event.
The conference is one of the biggest events in the bitcoin (BTC-USD) and crypto calendar. However, this year’s turnout was only around 15,000, less than half of last year’s record-breaking attendance of 35,000.
Last year’s event was graced by famous personalities like tennis legend Serena Williams, psychologist Jordan Peterson, and PayPal (PYPL) co-founder Peter Thiel.
Falling Crypto Prices
The fall in crypto prices, also known as crypto winter, may be the cause behind the muted turnout at this year’s crypto conferences. Last year, Bitcoin was valued at roughly $45,000 during the same event, while this year’s value saw the digital currency hover around $26,000.
Although crypto conferences can offer valuable networking opportunities in an industry where remote work is common, many companies have had to reduce travel and marketing expenses due to the market downturn.
At the Miami Beach Convention Centre, Kennedy passionately spoke about his commitment to safeguard the rights of “Bitcoiners” if he were elected president.
He firmly stated that he will make sure no one’s right to hold and use bitcoin will ever be violated, as it is both a demonstration and assurance of civil liberties.
Kennedy referred to the Canadian trucker protest last year, where bitcoin was used to overcome financial restrictions imposed by the government.
He emphasized that free money is just as crucial as free speech and expressed concern for those who could not access their accounts due to government interference.
With 180 discussions held at the conference, including topics such as Wall Street’s impact on FTX, Bitcoin Ordinals debates, and the potential of bitcoin-powered nuclear energy, Kennedy’s speech stood out as a promising stance on the evolving role of bitcoin in our society.
Bitcoin Price Movements
Bitcoin remains steady amidst the current U.S. debt ceiling stalemate, trading between $26,500 and $27,500 for almost two weeks.
Investors are cautious about potential developments as U.S. President Joe Biden and House leadership discuss raising the country’s debt limit.
Though the risk of default is minimal, this could significantly hinder risk appetite and lower prices of cryptocurrencies. Meanwhile, Ether has similarly been bound within the $1,750 and $1,850 range.
Despite Treasury’s yields rising and the price of gold declining, major equity indexes such as Nasdaq Composite and S&P 500 continue to rise steadily.
Upcoming European Flash Reports
Mark your calendars for May 23, 2023 as we prepare ourselves for the much-awaited Flash Manufacturing and Services PMI releases.
This diffusion index estimates the level of purchasing managers’ responses in a specific sector and is crucial for investors as it serves as a leading sign of economic health.
Traders are anticipating that the actual results will exceed the forecast, which is a positive sign for the currency.
The Flash Manufacturing PMI releases will be for the following countries: Germany, France, USD, EUR, and GBP. Meanwhile, the Flash Services PMI releases will be for Germany, France, USD, and EUR.
Remember that an index above 50.0 shows that the industry is expanding, while below 50.0 indicates that it is contracting.
Investors should be highly interested in this event because businesses’ prompt responses to market conditions are critical indicators of economic health.
Moreover, the insights from the purchasing managers can provide crucial and valuable insights into the company’s economic outlook.
So, be sure to watch out for the Flash PMI releases and stay on top of the game!
AUD/USD Starts Of At A Low Performance
On Tuesday, AUD/USD experienced a lackluster performance and has incurred mild losses around 0.6650 as the day progresses. This is due to the US dollar gaining strength amidst hopes of avoiding a US default, despite failed negotiations between US President Joe Biden and House Speaker Kevin McCarthy.
Additionally, tensions between the West and Russia, as well as the G7 versus China conflicts, have weighed down on the Aussie pair. Mixed preliminary readings of Australia’s S&P Global PMIs for May have also contributed to AUD/USD’s struggles.
With the US stock Futures slightly up for the second day in a row, the benchmark 10-year and two-year US Treasury bond yields have paused after a five-day uptrend at their highest levels in two months.
Traders should keep an eye on the US first readings of S&P Global Purchasing Managers Indexes for May as well as the US debt ceiling negotiations and Fed talks for clearer direction.
Euro Struggles As USD Gets Stronger Post-PMI report
After gaining in the previous two sessions, the Euro is now facing a downside trend following the release of preliminary PMI reports for May in Germany and the Eurozone.
The manufacturing sector in the region is still weak, but the service industry is expected to do better this month. Meanwhile, debt-ceiling talks in the U.S. are affecting global markets, and speculation over ECB interest rate hikes continues to build.
The value of the euro is closely tied to the U.S. dollar, which could be affected by the approach of the Fed and the ECB with respect to interest rates.
Germany, EMU Advanced Manufacturing/Services PMI, Germany IFO Business Climate, and Italy, France Consumer Confidence will serve as key events in the Eurozone this week, while the impact of the Russia-Ukraine war on growth prospects and inflation outlook remains a concern.
The EUR/USD faces an immediate contention level at 1.0759, while the upside is limited to 1.0872 and 1.1000.
GBP/USD Sinks to Monthly Low below 1.2400 due to Disappointing UK PMIs, with Bailey’s Testimony Next in Line
The GBP/USD pair has dropped below 1.2400 and hit fresh monthly lows, following May’s disappointing business PMI data in the UK.
On the brighter side, there is optimism around the US Dollar, with a possible debt-limit deal in the works. In the meantime, the market is waiting for Bailey’s upcoming testimony.
Looking at the four-hour chart, it’s evident that GBP/USD remains under the descending trend line, and the RSI sits below 50, indicating minimal buyer interest.
The static level at 1.2400 could provide initial support, and a four-hour close below that mark could trigger more selling, pushing the pair towards 1.2360 (static level) and 1.2330 (Fibonacci 38.2% retracement of the latest uptrend).
However, should GBP/USD climb back up above 1.2400, a challenge awaits it in the 1.2450/60 area (descending trend line, Fibonacci 23.6% retracement).
Overcoming this could stimulate buying interest, opening the pathway for an extensive rebound towards 1.24.
Gold Prices Facing Selling Pressure As US Dollar Strengthens
Gold prices have dropped for the second consecutive day and are nearing their lowest levels since April. The XAU/USD is currently trading around $1,960, down over 0.60% for the day, and is being driven lower by modest US Dollar strength.
The Greenback is benefitting from hawkish remarks made by several Federal Reserve officials, who suggested that interest rates may continue to rise.
With US Treasury bond yields remaining elevated and the potential for a looming recession in China, traders are looking to US economic data releases for possible shifts in the market.
Overall, the outlook for gold prices appears tilted towards bearish traders in the near-term.
Disclaimer:
All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.
