Debt Ceiling Resolution Hopes Lift Cryptos

Cryptocurrencies gained more than 1 percent in the past 24 hours amidst a surge in overall risk-on sentiment upon renewed hopes of a resolution to the U.S. debt ceiling crisis.

Overall crypto market capitalization increased to $1.13 trillion, from $1.12 trillion a day earlier.

The Dollar Index, a measure of the Dollar’s relative strength remained firm, rising 0.40 percent to 103.30, from 102.88 a day earlier.

The drop in initial jobless claims to 242 thousand in the week ended May 13 versus 264 thousand in the previous week and below market expectations of 254 thousand, that implied a tight labor market added to the Dollar’s strength.

Bitcoin gained 1.9 percent overnight to trade at $27,210.54. Bitcoin’s market dominance edged up to 46.5 percent, from 46.3 percent a day earlier.

Ethereum added 1.1 percent overnight to trade at $1,815.50. Ethereum’s crypto market share is steady at 19.3 percent.

6th ranked XRP (XRP) gained the most on an overnight basis among the top 10 non-stablecoin cryptocurrencies, riding on hopes of a favorable verdict in the legal tussle with the Securities and Exchange Commission. XRP has gained 4.2 percent overnight and 10.2 percent in the past week.

Litecoin (LTC) ranked 11th overall gained 13 percent over the past week, topping the top 10 non-stablecoin cryptocurrencies. Year-to-date gains are a little over 30 percent. Around 60 percent of the holders of the proof-of-work crypto coin are in the money at current prices.

Surprisingly, Bitcoin (BTC) is the biggest laggard on a weekly basis among the top 10 non-stablecoin cryptocurrencies. BTC is still trading with 0.60 percent losses on a weekly basis.

In the wider crypto world comprising the top 100 cryptocurrencies, 55th ranked Render Token (RNDR) topped with gains of 19 percent in the past 24 hours and 39 percent over the past 7 days. The token tagged to the AI& Big data category is the second-best performer on a year-to-date-basis among the top 100 cryptocurrencies with a gain of almost 486 percent. The AI& Big Data category of cryptocurrencies have collectively gained more than 5 percent in market capitalization in the past 24 hours.

57th ranked Axie Infinity (AXS) dropped 2.3 percent overnight after a brilliant rally the day earlier. The gaming token is however holding on to gains of 6 percent on a weekly basis. 27th ranked Toncoin (TON) has also shed more than 2 percent over the past 24 hours.

Meanwhile, Grayscale Investments, a digital currency asset manager and sponsor of Grayscale Filecoin Trust (FIL) (FILG) on Wednesday said it received a comment letter from the SEC staff stating its view that the Trust’s underlying asset, Filecoin (FIL), meets the definition of a security under the federal securities laws, and that therefore the Trust appears to meet the definition of an investment company under the Investment Company Act of 1940. The SEC staff has requested Grayscale to seek withdrawal of the registration statement promptly.

The classification of one more cryptocurrency as a security by the regulator comes amidst increased regulatory scrutiny and enforcement by U.S. regulators on the cryptocurrency industry. Grayscale has stated that it does not believe that Filecoin (FIL) is a security under the federal securities laws and intends to convey the legal basis for Grayscale’s position promptly to the SEC staff. Grayscale however is not sure whether the SEC staff would agree with its view or whether Grayscale would have to seek registration under the Investment Company Act of 1940 or, alternatively, seek dissolution of the Trust.

32nd ranked Filecoin (FIL) is currently trading at $4.53, higher by 2 percent on an overnight basis but lower by 0.33 percent on a weekly basis. Grayscale Filecoin Trust (FIL) (FILG) was last traded at $12.60 on May 11.

In another development, Binance Australia has informed that was unable to facilitate PayID AUD deposits for Binance users with immediate effect due to a decision made by its third-party payment service provider. The cryptocurrency exchange clarified that buying and selling cryptocurrency through debit or credit card or the Binance B2P marketplace was not affected. Binance assured that it was working hard to find an alternative provider to continue offering AUD deposits and withdrawals to its users.

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