Market Wrap: Bitcoin Stuck Below $30K as Buyers Remain on Sidelines

BTC declined by as much as 3% over the past 24 hours and is on track to end the month in the red.

AccessTimeIconMay 27, 2022 at 8:15 p.m. UTC
Updated May 27, 2022 at 9:03 p.m. UTC

Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.

Bitcoin (BTC) and other cryptos traded lower on Friday despite another move upward in stocks.

Crypto traders are still in risk-off mode after experiencing almost nine consecutive weeks of negative returns. BTC is on track for a 27% decline this month, although it is up 10% from its recent extreme low at $25,840 on May 12.

The cryptocurrency is still down by 40% so far this year, compared with a 13% drop in the S&P 500 and a 22% dip in the Nasdaq 100 over the same period. So far, it has been a tough year for all speculative assets.

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Over the short term, however, prices could stabilize. "There’s been massive short selling over the last few weeks, which may presage a short squeeze in the weeks ahead. Month-end rebalancing flows may also help," David Duong, head of institutional research at Coinbase, wrote in a Friday newsletter.

And on the macro front, MRB Partners, a global investment research firm, expects equity markets to rebound should global growth conditions prove resilient. The firm is"[a]ssuming interest rate expectations and bond yields stay calm for a period of time, which is probable as inflation will temporarily decelerate, first in the U.S. and then elsewhere. Central banks, in turn, likely will briefly cool their newfound hawkishness," MRB wrote in an email.

The short-term rise in stocks could be a tailwind for crypto, assuming the high correlation between both assets remains intact. In contrast, perhaps the decline in cryptos signals limited upside in stocks as risk-off sentiment prevails.

Latest prices

Bitcoin (BTC): $28,940, −1.83%

Ether (ETH): $1,760, −4.35%

S&P 500 daily close: 4,158, +2.47%

Gold: $1,857 per troy ounce, +0.51%

Ten-year Treasury yield daily close: 2.74%


Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices.

Volatility subsides, for now

The chart below shows the recent decline in BTC's short-term implied volatility. That suggests option traders have expected price swings to stabilize after BTC briefly dipped toward $28,000 on Thursday.

For now, bitcoin remains stuck in a tight range as volatility returned to normal levels. But over a six-month horizon (second chart), implied volatility remains elevated, and there has been stronger demand for puts (downside protection) versus calls.

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Bitcoin implied volatility (Skew)

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Bitcoin implied volatility, zoomed out (Skew)

Altcoin roundup

  • DOGE briefly jumped on SpaceX tweet: Tesla (TSLA) CEO Elon Musk tweeted Friday morning ET that merchandise for SpaceX, his space exploration startup, will soon be able to be bought with dogecoin, just as it can be for Tesla merchandise. The price of DOGE jumped as much as 10% to nearly 9 cents immediately following the tweet, before giving back most of those gains later in the New York trading day. Read more here.
  • Tether's dollar-pegged stablecoin expansion via Polygon: Tether has launched its USDT token on Polygon, an Ethereum scaling platform, meaning the largest stablecoin by market capitalization is now available on more than 11 blockchains, the company said. The addition of USDT, which is tied 1:1 to the dollar and has a market cap of over $73 billion, will help support Polygon's decentralized finance (DeFi) ecosystem. Read more here.
  • New Terra blockchain launch expected Saturday: Terra’s new blockchain will be launched on Saturday followed by an airdrop of new LUNA tokens to users as part of a broader plan to revive the ecosystem, developers confirmed Friday. “The community has been working around the clock to coordinate the new chain’s launch,” Terra developers said in a tweet on Friday morning. “Subject to potential change, we expect Terra to go live on May 28th, 2022 at around 06:00 AM UTC.” Read more here.

Relevant insight

Other markets

Most digital assets in the CoinDesk 20 ended the day lower.

Biggest Gainers

Asset Ticker Returns DACS Sector
Dogecoin DOGE +1.9% Currency
Ethereum Classic ETC +1.2% Smart Contract Platform
Polkadot DOT +0.6% Smart Contract Platform

Biggest Losers

Asset Ticker Returns DACS Sector
Solana SOL −5.2% Smart Contract Platform
Cardano ADA −5.1% Smart Contract Platform
Filecoin FIL −5.0% Computing

Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.


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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

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Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.

CoinDesk - Unknown

Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.

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