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Uniswap, Starknet, BNB Lead Altcoin Gains as Bitcoin Hits $71K

Jun 3, 2024
  • Bitcoin hit a two-week high above $71,000 before paring gains, up 1.5%.
  • May ISM manufacturing data showed a slowing U.S. economy, buoying rate cut expectations.
  • Bitcoin miners CORZ, WULF, BTDR booked double-digit gains.
As an experienced financial analyst, I closely monitor the crypto market and its trends. Based on the latest developments, it’s clear that the crypto market is experiencing a strong bullish momentum with Bitcoin (BTC) hitting a two-week high above $71,000. This comes amidst expectations of interest rate cuts due to the slowing U.S. economy as indicated by the May ISM manufacturing data.Multiple alternative cryptocurrencies drove the price movements on Tuesday, contributing to the overall upward trend of the crypto market, which saw bitcoin (BTC) reach a two-week peak.
As an analyst, I’ve observed that Uniswap’s native governance token, UNI, experienced a significant surge of over 20% in value during the day. This price increase can be attributed to a cryptic social media post made by Uniswap Labs, the development organization behind the decentralized exchange. The announcement, which was not immediately disclosed, generated anticipation and excitement within the crypto community.
Starknet, a layer-2 scaling solution on Ethereum operated by StarkWare, witnessed a 10% surge in the price of its native token (STRK). This uptick followed StarkWare’s public announcement detailing plans to employ Starknet for enhancing Bitcoin’s scalability. However, potential token holders should be cautious as approximately $85 million in STRK tokens are set to be released from vesting next week, which could potentially increase the token supply and put downward pressure on its price.
As a crypto investor, I’ve noticed an impressive 7% surge in the price of BNB, the native token of the BNB Smart Chain, which was originally established by Binance. This growth has brought us close to the all-time high price and has propelled the token’s market capitalization past the $100 billion mark. The reason behind this bullish trend is the heightened activity on Binance Launchpool and Launchpad platforms. By staking BNB, users gain access to exclusive airdrops and opportunities to invest in new tokens, making it an attractive proposition for investors like myself.

As a researcher studying the crypto market, I’ve noticed that fifteen out of the twenty tokens I follow performed better than the CoinDesk 20 Index, which saw a 1.8% increase over the last 24 hours. A majority of these tokens, seventeen to be exact, showed positive price movements during this period, indicating a generally upward trend in crypto prices.

Uniswap, Starknet, BNB Lead Altcoin Gains as Bitcoin Hits $71K
Uniswap, Starknet, BNB Lead Altcoin Gains as Bitcoin Hits $71K

The leading digital currency, bitcoin, reached an all-time high of $71,000 for the first time since May 2021. However, it later retreated and is now hovering around the $70,000 mark. New data on U.S. manufacturing released on Monday suggested a slowing economy, which could lead the Federal Reserve to reconsider rate cuts to stimulate growth later in the year.

“According to crypto hedge fund QCP’s latest report on Tuesday, there is optimism for an additional surge in the ongoing bullish trend due to the upcoming Non-Farm Payroll (NFP) release this Friday. Currently, financial markets assume a zero probability of interest rate reductions in June and July. However, a disappointing NFP figure could potentially alter this outlook.”

Ether (ETH), the second-largest cryptocurrency by market capitalization, was traded at approximately $3,800, marking a 0.3% increase but lagging behind Bitcoin’s stronger 1.5% growth. According to crypto analysis firm K33 Research, the anticipated launch of U.S.-listed spot Ethereum ETFs could potentially attract around $4 billion in investments within five months. This influx of funds might subsequently boost the price of ETH and improve its performance relative to Bitcoin.
Bitcoin mining companies listed in the United States experienced significant profits, with Core Scientific (CORZ) being a notable standout after a deal with cloud computing firm CoreWeave. CoreWeave reportedly agreed to host AI services for Core Scientific, leading to a 40% increase in its stock price. Additionally, there were reports of an all-cash buyout offer from CoreWeave for $5.75 per share.

Bitcoin mining company stocks have taken a hit following the recent bitcoin halving event in April, which reduced mining rewards by half and significantly impacted the primary income source for these companies. This turn of events may signal that smaller players in the sector could become takeover targets as consolidation intensifies or seek opportunities in the surging artificial intelligence market to stay afloat.

In simpler terms, Marathon Digital’s large-cap stock increased by 5%. On the other hand, TeraWulf, Bitdeer, and Hive Digital Technologies saw significant gains with increases of 22%, 12%, and 8% respectively, in their smaller-cap stocks.

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2024-06-04 23:59