Crypto Weekly: 4 – 10 July 2022
Despite Bitcoin’s prices not yet recovering, on-chain data indicates that Crypto Whales are continuing to accumulate Bitcoin despite having unrealized losses during this downturn.
Nayib Bukele, El Salvador’s President, announced that the country has purchased an additional 80 more bitcoin (BTC) at $19,000 each, despite El Salvador being down 55.03% on its existing Bitcoin investment. Additionally, Bukele also tweeted, “Bitcoin is the future. Thank you for selling cheap”, signaling his continued support.
MicroStrategy’s CEO Michael Saylor announced via Twitter an additional purchase of $ 10 million worth of Bitcoin at an average price of $20,817 per BTC. MicroStrategy holds approximately 129,699 BTC in total, with their Bitcoin holdings representing over $4 billion in value at an average price of $30,664 per BTC.
Tesla is expected to report a $440 million writedown on its Bitcoin holdings. Tesla had accumulated $1.5 million worth of Bitcoin in February 2021; however, the car manufacturer’s investment has similarly turned sour amidst the ongoing Crypto Winter.
Recent on-chain analysis by Glassnode has shown that the current bear market of 2022 is playing out as the worst on record, with several factors contributing to this. Factors include Bitcoin’s current dip below the 200-day Moving Average, negative deviation from realized price and net realized losses. Additionally, for the first time in history, both Bitcoin and Ethereum traded below their previous cycle ATH.
Nubank, Brazil’s largest digital bank, has rolled out Bitcoin purchasing capabilities to its almost 54 million users. The Warren Buffet-backed bank will charge BTC buyers a fee on each transaction, which allegedly generally hovers around the 0.02% mark. Previously, Brazil’s senate introduced a digital asset regulation bill recognizing digital assets as a medium of exchange.
Crypto hedge fund Three Arrows Capital has been ordered by the British Virgin Island courts to liquidate all assets in an effort to pay off outstanding debts. Additionally, 3AC has reportedly filed for Chapter 15 bankruptcy in New York. Chapter 15 bankruptcy will allow the international firm to protect its assets within the US while the liquidation is carried out in the British Virgin Islands.
FTX US has completed a deal with BlockFi that includes the option to buy the lending platform for up to $240 million, as well as extending $400 million in revolving credit facility so BlockFi can resume normal operations for both its services and products.
According to statistics from The Block Data Dashboard, NFT trading volume has declined 94% from its peak in January of $16.6 billion to around $1 billion last month. Floor prices have also taken a significant drop, with prominent projects such as BAYC, Doodles, and Cool Cats seeing drops of approximately 30%.
Weekly Technical Analysis: 4 – 10 July 2022
Bitcoin (BTC)
Bitcoin is maintaining its sideways trend with an unclear direction, but considering the current pattern, we might see a move in either direction this week. If support at $19,000 cannot remain intact, BTC may continue falling until it retests its previous low at the $17,000 level. However, if BTC can successfully challenge the $21,600 resistance level, BTC could potentially have enough upwards momentum to test a subsequent resistance at the $25,000 level. Investors are advised to wait for the market trend to become more clear before entering positions.
Ethereum (ETH)
ETH’s trend is currently unclear. Keep an eye on its previous low at $880, with ETH’s first support level at $1000. ETH will have to break through resistance at the $1,240 mark to manage an upwards reversal. Investors are advised to slow ETH purchases if the $1240 resistance level cannot be surpassed.
Terra Classic (LUNC)
LUNC is up by +75.4 over the past week. Despite the uptrend in the short run, overall, LUNC is still in a downtrend with little to no activity or plans for the development of the project. Investing in LUNC is a high-risk investment, and investors are advised to exercise high caution.
dYdX (dYdX)
DYDX is up +14.6% over the past week; however, its overall trend is still bearish. dYdX will have to successfully break through resistance at the 64 THB mark to see an upwards reversal. If the 44 THB support level cannot remain intact, investors are advised to wait and see if prices continue to fall and retest previous lows at 36 THB.
Trading and Investment Considerations For The Week
Currently, there is no recent positive news or updates in the cryptocurrency world that would contribute towards a price recovery. Almost all tokens delivered negative returns over the past week, with a very small number able to post positive returns due to speculative trading over small-cap tokens that are subject to very high risk. Investors are advised to continue to wait for a better entry time into the market before spending any money.
This week on 6 July, keep an eye on the release of the FED’s minutes for June’s FOMC meeting. The minutes could potentially contain insight or sentiment from the FED that could dictate the direction of the market in the immediate future. Additionally, the latest release of inflation rates and CPI by the US Bureau of Labor Statistics is scheduled for 13 July.
Concerns about an economic recession are continuing to grow. If the uncertainty begins to affect and negatively pressure the US stock market, it could potentially impact the crypto market as well. Meanwhile, we might see an even higher inflation rate in July, which consequently has raised the question of whether Bitcoin has reached the bottom of this bear market yet.
Major companies in the stock market are expected to post their financial results for the second quarter of 2022 this month. Specifically, keep an eye on companies that hold significant amounts of Bitcoin, such as Tesla, MicroStrategy, and Square. If the financial results indicate that these companies sold their BTC holdings, this would negatively impact the overall cryptocurrency market.
*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.
More from Crypto Weekly
Spot ETH ETFs Now Trading on U.S. Stock Markets
After a short wait of just 6 months following the launch of the Spot Bitcoin ETF, the U.S. Securities and …
Spot ETH ETFs Expected To Be Greenlit This Week
ETF analysts from Bloomberg predict that the Spot Ethereum ETF will commence trading on July 18. The ETF sponsor has …
Bitcoin Price Trends As Mt. Gox Returns Bitcoin To Creditors
Mt. Gox has begun repaying Bitcoin to its creditors after over 10 years of trading issues. The repayments will be …