Bitazza Crypto Weekly: International Regulators Set Their Sights On Crypto -

Crypto Weekly: 20 – 26 December 2021

Regulators and legislators around the world have spent the better part of this year attempting to figure out how best to regulate the burgeoning digital assets sector. From Western powers like the US and UK seeking to regulate Crypto; to Asian titans like China’s increasingly strict crackdown on Crypto or South Korea’s ban on Crypto transfers between licensed exchanges and non-licensed exchanges, governments worldwide are struggling to catch up to the rapidly evolving Crypto world.

The International Monetary Fund (IMF) has acknowledged the disruptive potential of Crypto, recognizing that digital assets are already fundamentally altering the international monetary and financial system in profound ways. The IMF has also outlined recommendations of how Crypto could potentially be regulated moving forward whilst highlighting the urgent need for cross-border collaborations and cooperation on Crypto regulation.

One of the key proposals in the regulatory framework put forward by the IMF is that Crypto service providers should be licensed, with a clearly defined pipeline/criteria for how to get required paperwork from relevant authorities.

It is likely that we will see even greater regulatory scrutiny towards digital assets from governments around the world. Despite this, it remains to be seen how this potential increase in regulations will affect trader confidence.

Meanwhile, Binance has officially announced their joint venture with an MDI Ventures-led consortium to develop a digital asset exchange to support the growing demand for access to the digital assets market within Indonesia. MDI Ventures is a subsidiary of leading Indonesian telecommunications titan Telkom. This joint venture is part of Binance’s broader strategy to increase its global footprint, despite having withdrawn its local license application within Singapore.

Interestingly, a new CNBC survey has revealed that 83% of millennial millionaires now own Crypto. Furthermore, the survey indicates that 53% of survey respondents hold 50% or more of their portfolio in digital assets, with almost a third of respondents investing over 75% of their assets in the digital asset market. The survey also highlighted that 48% of millennial millionaires plan on increasing their Crypto investments, with only 6% planning to reduce their Crypto exposure in the coming year.

Also of note is the announcement of the $150 million gaming fund between Forte, Griffin Gaming Partners, and Solana Ventures that looks to support the growth of Web 3 Gaming. The announcement of this fund follows the $100 million fund by Solan Ventures, FTX, and Lightspeed Venture Partners in November that is investing in play-to-earn games.

Finally, Nike and Adidas have officially entered the Metaverse, with the former acquiring virtual sneakers and NFT company RTFKT; and the latter announcing their upcoming “Into the Metaverse” collection, which will consist of a mix of digital and physical items sold as NFTs. The digital items in the collection will be usable on the Sandbox platform, with Adidas also acquiring virtual land within the Sandbox ecosystem with plans to fill it with exclusive content and experiences.

Weekly Technical Analysis: 20 – 26 December 2021

Bitcoin (BTC)

BTC’s correction continues, and if prices for the market leader cannot remain above the previous low at the $42,500 level, the downtrend could continue even further. If support can remain intact, look for BTC to test resistance at $52,000. If BTC can successfully break through this resistance level, look for an upwards reversal. Traders are advised to wait for BTC’s trend to become clearer before entering a position.

Ethereum (ETH)

Similarly, ETH prices continue to move bearishly, with ETH retracing to new lows before buy-back pressure pushed prices back up somewhat. Keep a close on ETH’s support and resistance level. If ETH can successfully challenge resistance at $4,500 this week, we could see an upward reversal; however, if the support at $3,900 cannot remain intact, ETH’s downtrend will likely continue.

Yearn Finance (YFI)

YFI is up by 54.5% from last week. YFI could ride this rally into an upwards reversal; however, it will have to challenge resistance at 132,000 Baht successfully to confirm its uptrend. Support is set at 88,000 Baht this week.

Nexus Mutual (wNXM)

wNXM is up by 31.5% from last week; however, overall, the token is still trending sideways with very significant price swings. Traders are advised to follow a channel trading strategy, buy the support at 1,900 Baht, and target short-term profits at 3,000 Baht until wNXM exits its sideways trend.

Trading and Investment Considerations For The Week

Concerns over the final FOMC/FED meeting of 2021 have waned as the market reacts to greater clarity regarding monetary policies moving forward, including QE tapering and planned rate hikes in 2022. None of this should unduly affect the Crypto market going into 2022.

However, if the spread of the Omicron variant worsens and the market is able to get dollar inflation under control, it is possible that the FED may postpone QE tapering and interest rate increases which could benefit Crypto markets positively.

With the final weeks of the year approaching, it remains to be seen if the Crypto markets will benefit from a “Santa Claus Rally,” with the US stock market anticipated to see gains to close out 2021. Regardless, Bitcoin’s trend still remains uncertain, and there could be a sizable downside moving forward if the market leader embarks on a downtrend to end the year.

LUNA and AVAX continue to outperform the market entering this week; however, the upside is beginning to lessen, and traders should consider looking at other Smart Contract platform tokens with greater potential upside and lower risk, such as FTM or MATIC.

CRV and YFI are the strongest performing DeFi tokens over the past week; however, as a whole, the DeFi sector has underperformed and has yet to see a strong rally. In contrast, NFT Game tokens continue to perform well.

Traders are advised to continue being very selective regarding which tokens to enter a position on until Bitcoin’s trend becomes clearer. Despite the growth of altcoins, Bitcoin remains the undisputed market leader, and the direction BTC picks coming out of its sideways trend will likely dictate market conditions as we move into 2022.

*Materials on Bitazza Weekly Newsletter are intended to be used and must be used for informational purposes only. The views, information, or opinions expressed are solely those of the individuals involved and do not necessarily represent those of Bitazza and its employees. The information contained herein is not intended to be a source of advice or financial analysis with respect to the material presented, and the information and/or documents contained in this website do not constitute investment advice.

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