Code Red — May 19

Chart of the Day

Down, But Not Out. It is a rough time for BTC as its price is almost 40% down since hitting an all-time high of $65k back in April. What started as a healthy correction turns into a multi-week downward spiral. Fear and uncertainty of yesteryear resurface, and the new market entrants are getting a taste of the despair of 2017. While on-chain metrics remain hopeful, the uptrend of net exchange flows, derivatives, in particular, suggests that coins are taken out of storage and moved onto exchanges to be traded. However, fleeting market confidence does not imply that the Bitcoin narrative is permanently impaired. It’s just part of the game. 

Talk of the Town

The Forbidden City. China puts its foot down and reiterates its stance of banning financial institutions and payment companies from providing crypto-related services. Three government bodies offered a joint statement confirming the ban originally implemented in 2013 and 2017, and sternly warned against speculative crypto trading, citing severe infringement on the safety of people’s property.