Bitazza Crypto Weekly: Bitcoin Hits 19 Million Mined Milestone -

Crypto Weekly: 4 – 10 April 2022

Since the Genesis Block that signaled the official birth of Bitcoin in 2010, over 19 million BTC has been mined, meaning that there is only 2 million BTC left to be mined. While this amount (roughly 10% of the total supply of BTC) may seem small at first, Bitcoin mining will likely continue for the next hundred-plus years due to the ever-escalating mining difficulty and issuance halving.

According to data from blockchain.com, Bitcoin network difficulty has reached an all-time high as miners compete over the final 2 million BTC. This increase in difficulty is corroborated by the increase in hashrate, which also hit an all-time high earlier this year at 248.11 EH/s on 13 February.

The Luna Foundation Guard (LFG), a nonprofit organization primarily focused on the development of Terra led by Terra founder Do Kwon, is in the process of buying up to $10 billion worth of Bitcoin primarily as a reserve to help maintain UST’s (Terra’s USD stablecoin) peg to the dollar. Kwon specifically says that besides Satoshi, the LFG Reserve will be the largest single holder of Bitcoin in the world, with 30,728 BTC acquired already.

MacroStrategy, a subsidiary of MicroStrategy, has closed a $205 million Bitcoin-collateralized loan with Silvergate Bank to purchase additional Bitcoin and expand operations. The interest-only term loan is secured by BTC held in MacroStrategy’s collateral account with a custodian mutually authorized by Silvergate and MacroStrategy. MicroStrategy is the largest independent publicly-traded business intelligence company and is estimated to have 125,051 BTC in its holdings.

Analysts at ETF and Mutual Fund manager VanEck predict that Bitcoin could reach $4.8 million if it were to be adopted as a new global reserve asset. The report argues that central banks are likely to change and diversify their reserve mix, perhaps in response to the geopolitical situation, such as the Western sanctions against Russia, as factors that could promote wider adoption of Bitcoin.

The European Parliament has passed a bill that will require Virtual Asset Service Providers (VASP) in the EU to report all crypto transactions worth more than 1,000 EUR to relevant anti-money laundering authorities. The bill also will restrict VASPs from transacting with unhosted wallets such as MetaMask or hardware wallets like Ledger without verifying owner identity beforehand through some form of KYC procedure.

Alpha Finance Lab has rebranded itself as Alpha Venture DAO and is expanding its platform to become a launchpad for blockchain startups looking to raise capital or secure mentorship. Through the DAO, Alpha Finance Lab will offer end-to-end support and mentorship to Web3 projects and developers in an effort to facilitate and incubate cutting-edge Web3 innovation.

Popular Play-to-Earn game Axie Infinity has announced that the Ronin Network has been hacked via an exploit that used hacked private keys to forge fake withdrawals from the Ronin bridge. The hackers were able to steal over $612 million in USDC and ETH, making it one of the largest exploits in Crypto history.

Finally, Binance has launched Binance Bridge 2.0. This feature will enable users to bridge assets from any blockchain to the BNB chain. The Binance Bridge 2.0 is intended to make decentralized finance smoother and more accessible to a larger audience as well as bring even greater functionality to the BNB Chain.

Weekly Technical Analysis: 4 – 10 April 2022

Bitcoin (BTC)

BTC was unable to break through the short-term resistance at $48,000; however, prices have not been making lower lows. The short-term trend for BTC remains bullish, with the market leader looking to target the $50,000 resistance level this week. If prices do not fall through the support level at $42,000, traders should consider entering a BTC position if prices are favorable.

Ethereum (ETH)

ETH faced a mild correction coming into this week, but the support level at $3,200 was able to remain intact. After rebounding, ETH’s trend looks like it’s beginning to build some strength and will be looking to target the $3,800 resistance level this week. This dip could be viewed as an ideal opportunity to enter an ETH position as its short-term trend is still bullish.

Aave (AAVE)

AAVE is up by +43.7% from last week. Its short-term trend has seen an upwards reversal, and the uptrend should continue if support at 6,400 can remain intact. AAVE will look to test the 10,000 Baht resistance level this week. Any price dips or corrections could make good entry points; however, traders are advised to be ready to cut losses if prices fall through the support.

Alpha Venture DAO (ALPHA)

ALPHA has seen a similar upwards reversal of its short-term uptrend and is up by +43.6% from last week. If the support at 16 Baht can remain intact, the short-term outlook will remain bullish as ALPHA looks to challenge this week’s resistance level at 28 Baht. ALPHA is an exciting token to keep an eye on, both in the short and long term.

Trading and Investment Considerations For The Week

Technical indicators for Bitcoin, such as its Moving Average Convergence Divergence (MACD), are positive for the first time in months. In conjunction with prices for BTC being above the 200-day EMA, indicators suggest that a bull run for BTC is very likely imminent.

Several altcoins have begun to reverse into uptrends; DeFi projects, in particular, are posting solid performances. These include tokens like AAVE, COMP, SNX, and ALPHA. Meanwhile, GameFi and Smart Contract platform tokens such as ATOM and AXS also show signs of a rally, suggesting that the overall market condition is starting to brighten.

Miami, FL, will play host to Bitcoin 2022, the world’s largest gathering of Bitcoiners, this week. The event will include high-profile guest speakers, influencers, and attendees and could contribute to increased market activity like we saw last week with Binance Blockchain Week in Dubai.

In contrast, numerous regulatory bodies will be convening this week, which may cause some market volatility as policies regarding cryptocurrencies may be announced coming out of these meetings. Upcoming meetings to keep an eye on this week include the Bank of England (4 April 2022), Eurogroup (4 April 2022), and the US Senate’s meetings and hearings (4-7 April 2022). Keep in mind that historically, any effects legislative meetings have on the market are usually only for the short term.

Keep an eye on the US Purchasing Manager Index (PMI) figures, which is set to be released this week, as well as details from this week’s US Senate meetings and hearings. There may be a minor sell-off with traders looking to lock in their profits before the meetings; however, the overall market outlook is likely to be positive with the Bitcoin Miami event taking place later this week.

For tokens that have started to rally, traders are advised to follow a buy on dip strategy. Avoid chasing the market, as a strong upwards reversal like we’re seeing now is usually followed by strong selling pressure that will push prices back down.

Tokens that are primed for a breakout and are showing signs of an upcoming rally, such as not creating lower lows, lifting their highs, etc., would be very attractive tokens to enter positions on this week for medium-term profit-taking.

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