Crypto Weekly: 7 – 13 March 2022
The ongoing Russia-Ukraine conflict has raised ideological questions within the crypto community over to what extent should the decentralization ethos apply. There have been calls for crypto sanctions against Russian users, akin to the sanctions commonly seen within the traditional financial system. In contrast, many within the community argue that caving in to pressure from the government would be unfair to innocent Russian citizens and a violation of the freedom that the crypto movement espouses.
In contrast, Jerome Powell, Chair of the US Federal Reserve, took this opportunity to reemphasize his belief that cryptocurrencies need a more robust regulatory framework, citing Russia’s ability to circumvent international sanctions through Bitcoin as an example of the need for more oversight. With that being said, there are zero signs that the US is looking to institute a China-like ban on crypto, but rather introduce greater regulation to increase Federal oversight and power over crypto.
Similarly, according to a report from the Financial Times, the Swiss federal government is planning on freezing crypto assets owned by Russian citizens and businesses held within Swiss borders. Per the report, 223 Russians, including associates of Vladimir Putin, have had their bank accounts and assets frozen within the past week. When asked, a senior official within the finance ministry claimed that the move was necessary because Switzerland wants to protect the integrity of its blockchain industry.
With the rapidly growing adoption of crypto, it remains to be seen how exactly this emerging digital economy will be governed moving forward. While some still espouse the anarchic spirit that defined the political beliefs of the Cypherpunks that began the crypto movements, a growing contingent argues that for mainstream adoption and legitimacy the crypto world must get used to cooperating with legislators and regulators around the world. While this question is unlikely to be definitely answered any time soon, the Russia-Ukraine conflict is a great case study that highlights the ideological divide within the crypto community.
According to eBay CEO Jamie Iannone, eBay could soon integrate crypto payments on its platform in an effort to appeal to the younger generation.
Similarly, AMC theaters will accept DOGE and SHIB as payment via BitPay starting this month. Currently the American movie theater chain accepts Bitcoin, Ether, Bitcoin Cash, and Litecoin for payment at their branches. While AMC has not committed to introducing support for more cryptos, this development remains a significant positive sign for mass adoption.
Terra network is now the second most staked digital asset by value, overtaking Ethereum 2.0 in staked value. There is currently over $30 billion worth of LUNA staked across various platforms. SOL remains the most staked asset, with over $40 billion worth of SOL staked. While this growth in staked value is a positive sign of growth for newer chains, Ethereum remains the king of DeFi in terms of total value locked in applications and smart contracts on the blockchain.
Finally, FTM and YFI plummet after the announcement that renowned DeFi developer Andre Cronje is quitting approximately 25 projects in the crypto/DeFi space.
Weekly Technical Analysis: 7 – 13 March 2022
Bitcoin (BTC)
Bitcoin faced a minor correction near the end of the week but was able to prevent prices from making lower lows below the $37,000 mark. Support is set at $34,000 for now, with BTC looking to break through initial resistance at $40,000 and a medium-term target at $45,000 if the market leader can rally this week.
Ethereum (ETH)
Following its correction last week, traders are advised to watch whether ETH’s support at $2,300, its previous low, can remain intact this week. If support is broken, it may be a while before ETH can rally and reverse its trend. The $3,000 resistance level is a key turning point that ETH will have to break through if prices are to return to an uptrend once more. ETH is currently trending sideways in the short term.
THORChain (RUNE)
RUNE is up by over +33% from last week, making it the best performing token this week; however, its overall trend remains bearish. RUNE will have to break through resistance at 200 Baht before properly signaling an upwards reversal. If support at 130 Baht cannot remain intact, RUNE’s short-term trend will continue to be bearish.
Ren Project (REN)
REN is up by +7.4% from last week, but its overall trend remains bearish. Keep an eye on whether the 10 Baht support level can remain intact; if so, REN may be able to challenge resistance at 14.5 Baht.
Trading and Investment Considerations For The Week
Despite the effects of the Russia-Ukraine crisis, Bitcoin remains stable as measured by returns over the past seven days. Compared to other assets, Bitcoin’s correction has been minor, suggesting that BTC’s support is quite strong at the moment.
However, traders are advised to keep an eye on Bitcoin prices if they begin approaching the $37,000 mark. If its support level this week cannot remain intact, BTC will begin to create lower lows, reducing the chances of a BTC recovery.
With no positive macroeconomic factors in sight, the only thing to do right now is to hope the situation doesn’t worsen and prices can continue trending sideways.
On March 15-16, the US Federal Reserve will meet; however, any developments in the Russia-Ukraine conflict are likely to overshadow anything coming out of the meeting.
Risk-averse traders are advised to slow their investments during this period of uncertainty. Traders comfortable with higher risk may be able to profit on short-term moves by entering positions on tokens that are outperforming the market like LUNA this week. Be advised that market conditions are still risky and traders must be prepared to cut losses at any time.
*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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