Round up of today’s market news

North American News

Market Rally Thwarted as Broader Stock Indices Falter at Finish Line

• S&P and NASDAQ give up gains post Powell press conference

The broader stock indices seemed poised for success but stumbled in the final stretch today. Both the S&P and NASDAQ ended the day with declines of approximately -0.34% each, a sharp reversal from their earlier gains during Powell’s press conference. Investors initially reacted positively to Powell’s remarks, but sentiment shifted later in the day, leading to a downturn in the markets despite earlier optimism.

At session highs:

• Dow Industrial Average average was up 533.27 points. It is ending the day up -87.35 points or 0.23% at 37903.28
• S&P index was up 60.42 point at session highs. It is ending the day down -17.30 points or -0.34% at 5018.40.
• NASDAQ index was up 268.40 points at session highs. It is ending down -52.34 points or -0.33% at 15605.48.

The small-cap Russell 2000 was up 43.79 points at session highs. It is ending the day up 6.32 points or 0.32% at 1980.22.

Some of the individual winners and losers:

• Meta Platforms rose $8.93 or 2.08%
• Amazon rose $3.86 or 2.21%
• Nvidia fell $-33.99 or -3.93%
• Google rose $1.01 or 0.62%
• Microsoft rose $5.80 or 1.49%
• Apple fel $1.03 or -0.60% ahead of earnings after the close tomorrow
• Tesla fell $-3.28 or -1.79%

Powell Q&A: We’re committed to current restrictive policy for as long as it’s appropriate and we’ll do that

• Comments from Powell
• Cites JOLTS report, including quits as a sign labor market coming into better balance
• I think it’s clear that policy is restrictive and that over time it will be sufficiently restrictive, the data will show if that’s so
• We’re committed to current restrictive policy for as long as it’s appropriate and we’ll do that
• I think it’s unlikely the next policy move will be a hike
• I think we would need to see persuasive evidence that our policy isn’t restrictive enough, I don’t think we’re seeing that
• We think our policy is well positioned to address different paths the economy might take
• I think there are paths that we could embark on rate cuts
• We want to see high wages but we don’t want to see them eaten up by inflation
• Part of getting inflation to target probably means wage hikes to more sustainable levels
• We don’t know how long it will be before we can cut rates
• My expectation is over the course of the year that inflation will move back down but my confidence in that is lower
• Thinks lower rents will show up over time, after substantial lags work through data
• I don’t see the ‘stag’ or the ‘flation’ and I was around for stagflation
• Restrictive policy is doing what it’s supposed to do
• I’ve been on the Fed for four Federal elections, look at the transcripts, there’s no political wrangling
• An unexpected weakening in the labor market would have to be significant, a couple of tenths in the unemployment rate probably wouldn’t do it

Powell opening statement: Further progress on inflation not assured, path uncertain

• Comments in the opening statement in the FOMC statement
• Economy has made considerable progress toward dual goals
• In recent months inflation has shown a lack of progress and we remain highly attentive
• Inflation still too high, further progress not assured
• Private domestic final purchases were as strong as the second half of last year, that is an underlying signal for demand
• Supply and demand for labor has come into better balance
• Strong job creation has been met with increased supply but demand still exceeds supply
• Economic outlook is uncertain
• We do not expect it will be appropriate to cut until we gain greater confidence inflation moving towards 2%
• It is likely that gaining greater confidence will take longer
• We are prepared to hold rates longer
• We are also prepared to respond to an unexpected weakening in the labor market
• We will make decision meeting by meeting
• Slowing pace of balance sheet runoff will ensure a smooth transition
• Slowing pace does not mean balance sheet will shrink to less than it would otherwise

FOMC decision: Interest rates unchanged, Fed cites lack of further progress on inflation

• Highlights of the FOMC statement on May 1, 2024

• Prior was 5.25-5.50%
• QT pace $25 billion vs $60 billion ($30 billion was expected)
• Economic activity described as ‘continued to expand at a solid pace’ vs ‘expanding at a solid pace’ prior
• Jobs gains described as ‘have remained strong’ vs ‘have remained strong’ prior
• Inflation described as ‘remains elevated’ vs ‘remains elevated’ prior
• Adds line to say ‘In recent months, there has been a lack of further progress toward the Committee’s 2 percent inflation objective.’
• The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year

The statement repeated:

The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.

Atlanta Fed GDPNow Q2 growth estimate dips to 3.3% from 3.9%

• The Atlanta Fed GDP model for growth dips in its latest estimate.

The Atlanta Fed GDPNow growth estimate for Q2 growth moved to 3.3% from 3.9% in its inaugural model value.

In their own words:

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2024 is 3.3 percent on May 1, down from 3.9 percent on April 26. After this morning’s construction spending release from the US Census Bureau and the Manufacturing ISM Report On Business from the Institute for Supply Management, the nowcasts of second-quarter real personal consumption expenditures growth and second-quarter real gross private domestic investment growth decreased from 4.0 percent and 4.5 percent, respectively, to 3.1 percent and 4.0 percent, while the nowcast of the contribution of the change in real net exports to second-quarter real GDP growth increased from -0.05 percentage points to 0.01 percentage points.

JOLTs job openings for March 8.488M versus 8.686M estimate. Lowest since Feb 2021

• JOLTS job openings for March 2024

• Prior month 8.813M revised from 8.756M
• Job openings came in at 8.488 million down 1.1 million over the year. The rate was little change to 5.1% in March. The level is the lowest since February 2021.
  • construction jobs fell -182K
  • finance and insurance -158K
  • local government education +68K
• Quits rate falls to 2.1% from 2.2% last month.. The total quits for little changed at 3.3 million but was down by 480,000 over the year.
• Hires was little change of $5.5 million down by 455,000 over the year. The rate at 3.5% is little changed from March
• Separations including quits, layoffs, and discharges and other separations decreased to 5.2 million (-339,000) the rate change little at 3.3%

US April ISM manufacturing 49.2 vs 50.0 expected

• US April 2024 manufacturing data from the Institute for Supply Management

• Prior was 50.3
• Prices paid 60.9 vs 55.8 prior
• Employment 48.6 vs 47.1 prior
• New orders 49.1 vs 51.4 prior
• Inventories 48.2 vs 48.2 prior
• Production 51.3 vs 54.6 prior

Comments in the report:

• “Conditions are improving as demand is starting to recover. Costs continue to be a major concern as suppliers that rapidly increased prices in the follow-up from COVID-19 are slow to return to pre-pandemic levels.” [Chemical Products]
• “Sales continue to exceed expectations in 2024. The forecasted dip in commercial vehicle production volumes appears to be avoided. Operational output is still strong, and the supply chain has the capacity to support. International supply chain risks have been minimized, but the frequency of supplier insolvencies or bankruptcies appears to be increasing.” [Transportation Equipment]
• “Order flow has stabilized. It took some customers longer to replenish their supply chain network after the fourth-quarter rush we commonly have. Order rates are expected to remain stable through August.” [Food, Beverage & Tobacco Products]
• “Some small indications of market improvement in China for our instruments and technology. Recovery is still slower than we had hoped, and macroeconomic uncertainty remains in Europe and the Middle East, as well as domestically in the U.S. with ongoing inflationary pressures and anticipation for the (upcoming) election.” [Computer & Electronic Products]
• “Market conditions have definitely softened. Thankfully, our backlog is strong and will get us through the year. When conditions improve as expected later this year, we will be in a good position to continue building the business. We are a manufacturer of automated packaging equipment for the food and beverage industry, and with a continued shortage of workers, our customers are requiring more and more automation.” [Machinery]
• “Business is slowing down — it has been a gradual decline for the last several months. We are not seeing new orders at last year’s level, or at this year’s budgeted levels.” [Fabricated Metal Products]
• “There has been a lot of volatility in sales. On average, our sales look flat, but the volatility is concerning.” [Electrical Equipment, Appliances & Components]
• “Business remained strong through the first quarter and has started strong for the second quarter. Commercial construction is still going well but on a regional basis, with the Southeast the strongest.” [Nonmetallic Mineral Products]
• “The major factor affecting our business is the uncertainty of the Federal Reserve’s handling of interest rates, which will affect our customers’ businesses, thereby affecting ours.” [Plastics & Rubber Products]
• “Business is stable, and orders have been consistent. We’re quoting new business for the factory, and automotive builds continue at averages but not near maximum outputs. Workforce is stable, with the turnover ratio dropping considerably. Salaries and hourly rates increasing to meet inflationary pressures.” [Primary Metals]

US April S&P Global final manufacturing PMI 50.0 vs 49.9 prelim

• The latest survey of manufacturers from S&P Global
• Prelim was 49.9
• Prior was 51.9

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:

“Business conditions stagnated in April, failing to improve for the first time in four months and pointing to a weak start to the second quarter for manufacturers. Order inflows into factories fell for the first time since December, meaning producers had to rely on orders placed in prior months to keep busy. However, there are some encouraging signs. The drop in orders appears to have been largely driven by reduced demand for semi-manufactured goods – inputs produced for other firms – as factories adjust their inventories of inputs. In contrast, consumer goods producers reported a further strengthening of demand, hinting that the broader consumer-driven economic upturn remains intact.
“Producers on the whole also seem confident enough in the business outlook to continue adding to payroll numbers at a pace that compares well with the average seen over the past two years, investing further in operating capacity. From an inflation perspective, it was also reassuring to see prices charged for goods rise at a slower rate than the 11-month high seen in March. The rate of increase nevertheless remains elevated by historical standards – and well above the average seen in the decade prior to the pandemic – as firms continued to pass higher commodity prices on to customers.”

US April ADP employment +192K vs +175K expected

• ADP employment report for April 2024

• Prior was +184K (revised to 208K)
• Goods producing +47K
• Service providing +145K

The median change in annual pay:

• Job stayers 5.0% versus 5.1% last month
• Job changers 9.3% versus 10.1% last month

US March construction spending -0.2% versus +0.3% expected

• US construction spending for March 2024
• Prior was -0.3%
• Spending up 9.6% y/y
• Spending up 10.6% y/y in Q1

US MBA mortgage applications w.e. 26 April -2.3% vs -2.7% prior

• Latest data from the Mortgage Bankers Association for the week ending 26 April 2024

• Prior -2.7%
• Market index 192.1 vs 196.7 prior
• Purchase index 141.7 vs 144.2 prior
• Refinance index 456.9 vs 472.7 prior
• 30-year mortgage rate 7.29% vs 7.24% prior

Quarterly refunding announcement: Will increase TIPS and bill auction sizes

• Highlights from the quarterly refunding announcement

• Total refunding of $125billion in May-July quarter, including $17.2b of new cash
• Will sell $58 billion in 3s, $42b in 10s and $25b in 30s
• To increase 5y TIPS by $1b to $21b
• To keep 10y TIPS at $16b
• Prudent to continue incremental increase in TIPS in May-July quarter
• Expects to increase 4, 6, and 8 week bill auctions in coming days
• Through July plans to hold weekly liquidity support buybacks of up to $2b per quarter

Morgan Stanley expects US CPI to surprise to the downside in April

• Commentary from Morgan Stanley economists

From Morgan Stanley:

We expect inflation data “to reverse to downside surprises in April. .. Several data series indicate a rapid deceleration in rents. .. Financial Services inflation is linked with stock market returns, and the reversal in the S&P 500 in April will likely push this volatile component of inflation indices down .. Continued China deflation should keep US goods prices broadly in deflation ..”

Fed rate cuts in 2024? BlackRock’s CIO predicts more monetary easing ahead

• BlackRock’s chief investment officer on market reactions hinging on Powell

Rick Rieder is BlackRock’s chief investment officer of global fixed income.

Recently he reiterated his call for two Federal Reserve rate cuts this year:

Dow Jones / Market Watch (gated) carried remarks from Rieder on Tuesday ahead of the Federal Open Market Committee (FOMC) meeting today. In brief:

• “core services inflation is just too high”
• How Powell addresses the potential for rate hikes to deal with sticky inflation will be important, because the market will likely react to that “big question,” Rieder told MarketWatch.
• Should Powell sound “hawkish” on Wednesday, the stock market would probably trade down against the backdrop of a jump in Treasury yields
• Rieder said his sense is that Powell doesn’t want to raise rates further.
• In Rieder’s view, the market has gone … too far in … in thinking the Fed might not cut rates at all in 2024. “If the data allows them, I still think [the Fed would] like to get a cut or two in this year,” Rieder said.

Citi says traders expect the biggest Fed-day move in the S&P 500 since 2023

• Bloomberg carry the report on the Federal Open Market Committee (FOMC) day today

Bloomberg cite data compiled by Citi:

• the S&P 500 index is implied to move 0.95% on Wednesday … according to an options strategy known as an at-the-money straddle, where traders buy an equal number of calls and puts with the same strike price and expiration
• the last time traders priced in an FOMC-day move this wide was in May 2023

Bloomberg is gated, link is here

JP Morgan’s Marko Kolanovic cautions against buying the dip in stocks

• Says evidence is surfacing of a stagflation problem

JPMorgan’s Marko Kolanovic:

• the downside surprise in the Q1 GDP data, combined with the upside surprise on inflation is a challenge to those holding a “soft landing view” in the market
• says lower growth and higher inflation is a situation that points the way to stagflation, and the market is not heeding it
• “While the worry for risk markets is overheating that jeopardizes rate cutting, in contrast to the overheating story, the recent GDP print heads in a stagflationary direction relative to market expectations”
• analysts at JPM add they are “not overly impressed” so far this earnings season (pointing out that of the S&P 500 companies having reported, 75% are beating EPS estimates, but only 59% are topping revenue estimates, slipping below the 63% average)

Timiraos on FOMC – rate cuts postponed “for the foreseeable future”, Powell the main event

• Wall Street Journal Fed insider Nick Timiraos on what’s to come later today from the Fed

Nick Timiraos’ piece was in Tuesday morning’s Wall Street Journal, so this is not fresh news. And its not going to surprise anyone either.

In brief:

• Fed officials will hold their benchmark federal-funds rate steady
• Firmer-than-anticipated inflation in the first three months of the year has likely postponed rate cuts for the foreseeable future.
• officials are likely to emphasize that they are prepared to hold rates steady … for longer than they previously anticipated
• With no new economic projections at this meeting and minimal changes expected to the Fed’s policy statement, Fed Chair Jerome Powell’s press conference will be the main event

Former Dallas Fed president Kaplan’s solution for inflation not about the Federal Reserve

• Kaplan spoke ahead of the Federal Open Market Committee (FOMC) meeting today

Comments from Kaplan ahead of today’s Federal Open Market Committee (FOMC) meeting. Kapaln argues that fiscal policy is what is preventing inflation from falling and the Federal Reserve for cutting rates:

• one of the reasons why the Fed is struggling to be able to cut rates and why service sector inflation and wages are so sticky, is excessive government spending
• the inflation rate on goods is today very, very low … the supply chain issues have gotten worked out
• the inflation issue today is almost exclusively in the not totally but almost exclusively in the service sector … we’ve got a very sticky labor force cost issue
• slow down implementation of the inflation reduction act and infrastructure act projects, not cancel but slow, and let’s wrestle this inflation issue to the ground

Canada April S&P Global manufacturing PMI 49.4 vs 49.8 prior

• The latest survey of Canadian manufacturing from S&P Global

• Prior was 49.8
• New orders fell for a fourteenth successive month. Although modest, the decline was the steepest since January amid reports that high prices and soft market demand were weighing on sales.
• firms took on additional staff for a third month in a row
• Suppliers were also reported to have raised their prices, and this helped to explain another round of input cost inflation in April

Commenting on the latest survey results, Paul Smith, Economics Director at S&P Global Market Intelligence said:

“April’s survey data revealed another relatively subdued performance of Canada’s manufacturing sector, with both output and new orders both falling since March – and perhaps most disappointedly at slightly faster rates. This led firms to again cut their buying activity, and focus on the utilisation of existing inventory, which several panellists noted remain too high.

“Inflation rates are also frustratingly sticky, with supply- side delays noted as a factor pushing up input costs. However, manufacturers’ pricing power is being limited by market competition and subdued demand. Firms are subsequently looking to the Bank of Canada to ease interest rates soon given elevated borrowing costs remain a key factor weighing on the outlook.”

Commodities

Gold soars after Fed Chair Powell remarks, FOMC decision

• Gold prices rose over 0.40% after the Federal Reserve announced that it would hold interest rates steady and slow down its balance sheet reduction.
• Fed Chairman Jerome Powell emphasizes a cautious approach, stating rate cuts are off the table until inflation consistently moves towards the 2% target.
• Powell’s comments during the press conference highlight a “meeting by meeting” approach to future monetary policy decisions.

Gold prices rallied sharply above the $2,300 milestone on Wednesday after the Federal Reserve kept rates unchanged while announcing that it would diminish the pace of the balance sheet reduction. In addition, Fed Chair Jerome Powell failed to provide forward guidance regarding lowering interest rates during the rest of the year.

The yellow metal trades at $2,323, up by more than 0.40% as Fed Chairman Jerome Powell takes the stance. He said it wouldn’t be appropriate to cut rates until they have confidence that inflation is trending toward its 2% goal, adding that this year’s inflation data “has not given us that greater confidence.”

Gold buyers make a stand

• Gold up $21 after falling sharply yesterday

Gold yesterday fell below last week’s low and looked like it could be in store for a deeper correction but buyers reappeared today, lifting it $21 to $2306.

Naturally, the focus is on the Federal Reserve interest rate decision later. There is angst throughout markets that they could be more-hawkish and potentially put a rate hike on the table. Eyes remain on China for hints of central bank and retail buying. I was also surprised to see buying so strong from Turkey on this chart but it makes sense given the currency instability.

US weekly EIA oil inventories +7265K vs -1100K expected

• Weekly US EIA oil inventory data
• Prior was -6368K
• Gasoline +344K vs -1060K expected
• Distllates -732K vs -225K expected
• Refinery utilization -1.0% vs +0.5% expected
• Implied mogas demand vs 8.42 mbpd prior
• US production 13.1 mbpd vs 13.1 mbpd prior

Oil prices fall to a six-week low after US inventory data

• WTI crude oil slides after inventory data

US oil inventories are filling ahead of driving season.

May is typically the strongest month of the year for WTI crude oil prices as the industry switches from building inventories to drawing them as Americans hit the road. Today’s numbers showed there will be more oil in storage than thought with crude stockpiles up 7.265 million barres per day compared to a 1.1 million draw expected.

EU News

European equity close: UK slides with the continent on holiday

• May day weighs

It’s May Day in Europe and that kept most markets closed but not the UK.

The FTSE 100 ultimately ended the day at the lows, down 0.3%. The index touched a record yesterday but eventually gave it all back and has now stalled.

It is a market holiday in Europe today

• Labour Day means a quiet run up to US trading and the Fed later

UK April Nationwide house prices -0.4% vs +0.1% m/m expected

• Latest data released by Nationwide Building Society – 1 May 2024
• Prior -0.2%

The average price of dwellings in the UK rose to £261,962 in April – up from £261,142 in March. But that is before taking into account seasonal factors. After accounting for that, house prices are seen falling by 0.4% instead. Nationwide notes that “the slowdown likely reflects ongoing affordability pressures, with longer term interest rates rising in recent months, reversing the steep fall seen around the turn of the year”.

ECB’s de Cos: Eurozone inflation will fluctuate this year then fall to 2% next year

• Comments from de Cos

• Inflation to fluctuate for rest of 2024 then fall to 2% in 2025
• All in all, we are increasingly confident that we are on the right track to achieve our 2% target relatively soon
• de Cos’ term ends in June

Asia-Pacific-World News

Australia April Manufacturing PMI 49.6 (flash was 49.9, prior 47.3)

• Judo Bank S&P Global Manufacturing PMI final April 2024

Judo Bank S&P Global Manufacturing PMI final April 2024 from Australia comes in at 49.6

• the preliminary reading was 49.9, prior was 47.3

Manufacturing nearly jumped into expansion at a 3-month high, but not quite hitting the 50 line.

Warren Hogan, Chief Economic Advisor at Judo Bank, in brief:

• Manufacturing activity improved sharply in April
• output and new orders were both higher in the month
• too early to call an end to the cyclical slowdown experienced by Australia’s manufacturing sector over the past 12 months
• manufacturing sector price indicators have mostly normalised back to pre-pandemic levels over the past six months. The jump in April is relatively small, with manufacturing input and output prices still below the readings from the services sector.
• The jump in the input price index in April suggests that cost pressures are rising, likely due to a combination of higher raw materials prices and the effects of a weaker Australian dollar. Labour costs are still on an upward trajectory due to tight labour markets and skills shortages.
• The employment index improved throughout April, increasing to 49.9 which, while below the neutral level, is the highest reading in six months. If activity indicators continue to improve over the months ahead, we expect this will quickly translate into increased labour demand.

RBNZ Deputy Governor Hawkesby says higher interest rates means cooling jobs market

• Adds that high inflation is still a key risk

Reserve Bank of New Zealand Deputy Governor Hawkesby

• Employment data confirmation of trend we were expecting to see
• Higher interest rates will involve a cooling of the labour market
• High global inflation still remains a key risk for financial stability

New Zealand data: Unemployment rate 4.3% (vs. 4.2% expected, 4.0% prior)

• Q1 2024 employment report from NZ

Employment down and unemployment up. Wage costs steady.

Reserve Bank of New Zealand – risk of persistent inflation, rates restrictive for longer

• From the RBNZ’s Financial Stability Report for May 2024

RBNZ says:

• New Zealand’s financial system remains strong as the economy continues to adjust to the higher interest rate environment.
• Global inflation is declining from elevated levels and financial markets have priced in lower policy rates over the next year.

Japan April 2024 Manufacturing PMI (final) 49.6 (flash was 49.9, prior 48.2)

• Jibun Bank S&P Global Manufacturing PMI for April 2024

Jibun Bank S&P Global Manufacturing PMI for April 2024. This is the final reading, comes in at 49.6 for the slowest contraction in eight months:

• the preliminary was 49.9
• prior 48.2

• output and new orders slipped for an 11th straight month, the pace of falls eased
• new orders shrank due to sluggish demand
• new export orders contracted due to low demand from key export markets such as China and the U.S.
• input costs picked up, higher prices were seen in many goods, especially metals – the weak yen a factor due to pushing up import prices in local currency

Japan may provide tax breaks for companies converting foreign profits into the yen

• This is a yen positive if it comes to fruition

Info via Reuters citing Sankei report on Tuesday:

• Japan may introduce measures to provide tax breaks for companies converting foreign profits into the yen and include it in the government’s annual mid-year policy blueprint compiled in the summer
• incentivising firms to return overseas assets to Japan and thus yen supportive
• A finance ministry official was not immediately available for comment on Wednesday
• Some government officials are sceptical, telling Reuters prior to the newspaper report that favourable tax treatment has already been in place

Japan’s currency authorities “have entered a new phase” in their handling of yen weakness

• Bank of Japan likely sunk around 5 trillion yen into Monday’s intervention

Via Bloomberg comes this:

• “As far as we can tell by looking at changes in the BOJ current account, we can say there’s a high likelihood intervention took place on the 29th,” said Teppei Ino, Tokyo head of global markets research at MUFG Bank Ltd. “The amount of about ¥5 trillion is largely in line with expectations.”

The figure of circa 30bn USD is derived from the BOJ reporting on Tuesday that its current account will probably fall ¥7.56 trillion due to fiscal factors including government bond issuance and tax payments on Wednesday. Says the Bloomberg article:

• That’s much bigger than a drop of about ¥2.1 trillion estimated by private money brokers, suggesting that intervention of about ¥5.5 trillion took place.
• The analysis suggests Japan’s currency authorities have entered a new phase in their handling of forex after a rapid depreciation in the yen to beyond 160 per dollar Monday, following weeks of verbal intervention.

Bloomberg article is gated, but here is the link 

Cryptocurrency News

Bitcoin price drops sharply, blowing nearly $190 million in crypto long bets out of water

• Bitcoin price crashes over 6% on Wednesday, slipping past pool of liquidity between $60,600 and $59,005.
• Over $230 million worth of crypto positions have been liquidated, comprising $189 million in longs and over $40 million in short positions.
• Volatility levels are high in BTC and crypto ahead of FOMC meeting, which could turn markets.

Bitcoin made a flush crash on Wednesday, losing the $60,000 threshold. The dump saw millions in positions liquidated ahead of the FOMC.

Nearly $190 million in crypto long bets out of water after Bitcoin dip

Bitcoin price has crashed 6% in the past 24 hours to trade for $57,495 as of press time. The dump that saw BTC slip below the pool of liquidity between $60,600 and $59,005 has caused over $230 million in total crypto positions to be liquidated across the market. This comprises $189 million in longs and $44 million in short positions. Specifically for BTC, over $80 million in longs were liquidated against $15 million in shorts.

Bitcoin looks to crack below key support level in drop under $58,000

• Bitcoin is down another 5% today as it looks to crack below its 100-day moving average

The cryptocurrency is facing a tough end to April trading and an even rougher start to May trading. The halving has come and gone and it looks like support from a technical perspective is as well. Bitcoin is now falling below $58,000 after sliding below the $60,000 mark. But more importantly, price is looking to take out the 100-day moving average at $59,540.

That was the key level which held the drop back at the end of January, before Bitcoin rallied hard over the next two months. As such, a break under the technical support level will see the more bullish bias overturned. And that opens up a gap towards a potential fall towards the $50,000 mark next.

Ethereum attempts recovery from dip amid unchanged interest rates and accusations leveled at SEC Chair

• Institutional whales appear to be dumping Ethereum after recent dip.
• Fed’s decision to leave rates unchanged appears to have helped ETH’s price recover slightly. 
• SEC Chair Gensler has misled Congress, considering recent revelations from  Consensys suit, says Congressman McHenry.

Ethereum saw another day of decline on Wednesday as its price dipped outside of a key range. This follows a possible sell-off from institutional whales, the US Dollar Index gaining strength, and the Chair of the US House Financial Services Committee, Patrick McHenry, accusing SEC Chair Gary Gensler of misleading the US Congress.

Whales dump, SEC Chair accused

Ethereum’s classification as either a security or commodity is trending on Wednesday. Here are your key market movers: 

• ETH dip follows the US Dollar index gaining strength as it shot above 105.00 for the first time in nearly five months. This may have been responsible for Bitcoin’s further decline on Wednesday, taking Ethereum along with it. A strong US Dollar may see investors giving less attention to cryptocurrency investments.
  
• As a result the market’s reaction aligns with earlier predictions that a key macro event could have a prevailing impact on the price of Ethereum.
  
• However, Ethereum appears to be quickly recovering losses following the Federal Reserve leaving rates unchanged at 5.25-5.5% on Wednesday. This indicates the Fed hasn’t made tangible progress in tackling inflation.
   
• Following a further plunge across top cryptocurrencies, institutional whales have been depositing ETH heavily on exchanges, according to Whale Alert. A series of posts from Whale Alert confirms whales have deposited over 100,000 ETH to exchanges in the past 24 hours.

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