Crypto Weekly: 28 February – 6 March 2022
The trading volume of cryptocurrency on popular Ukrainian crypto exchange Kuna has more than tripled following the Russian invasion, according to CoinGecko. With the exponentially increased demand, prices for USDT is at a premium, with many Ukrainians paying over the pegged value to be able to hedge against their native currency.
The Ukrainian central bank is also limiting cash withdrawals to $3,533 and prohibiting the issuance of foreign currency from retail bank accounts. Many Ukrainians have turned to cryptocurrency during this period of economic uncertainty and geopolitical upheaval.
Ukrainian Vice Prime Minister Mykhailo Fedorov has announced that Ukraine is accepting Bitcoin, Ethereum, and USDT donations, posting wallet addresses on verified government Twitter accounts.
According to ZYcrypto, Russia and Ukraine could potentially adopt Bitcoin as an asset and alternative currency during wartime.
Canadian citizens are withdrawing cash from their bank accounts in droves to buy Bitcoin following the protests against the Canadian government’s public health mandates.
We are seeing the value of crypto’s decentralization in the acceptance and widespread use of crypto in this time when many are stuck in countries with rapidly worsening economies, and others are having their financial freedom infringed upon by their local governments. With all the implications of crypto’s freedom becoming increasingly more obvious to people, this could represent a turning point where we see a big push for crypto and mass adoption by the people.
Meanwhile,.Nayib Bukele, President of El Salvador, has allegedly submitted reforms to El Salvador’s congress that proposes citizenship for foreigners in exchange for investment. If passed, this proposal will likely apply to investments in El Salvador’s Bitcoin funds and the so-called “Bitcoin City” as well.
Elon Musk is rumored to have purchased a Bored Ape NFT worth 569 ETH. Whilst the rumours are largely unsubstantiated, many on Twitter are having fun speculating at the prospect of the SpaceX and Tesla CEO potentially joining the Bored Ape Yacht Club.
Binance has announced a partnership with S.M. Brand Marketing to create an NFT ecosystem that could leverage SM Entertainment’s roster of K-Pop artists such as Girls Generation and Super Junior to further explore opportunities on the metaverse.
Manchester City is partnering with Sony to build the first-ever Metaverse football stadium, allowing fans worldwide to watch live games in the virtual world.
Weekly Technical Analysis: 28 February – 6 March 2022
Bitcoin (BTC)
BTC rebounded quickly after hitting the $35,000 support level. The fact that BTC was able to not create lower lows, in conjunction with significant buying pressure around the area, suggests that the support level is likely strong. If the support level remains intact, BTC will look to test resistance at the $45,000 mark. A successful challenge would signal the beginning of a bullish reversal for the market leader.
Ethereum (ETH)
Similar to BTC, ETH had significant buying pressure around its $2,300 support. If this support cannot remain intact this week, traders are advised to consider selling and cutting their losses depending on when they entered their ETH positions. The resistance level for the week is set at $3,000.
Terra (LUNA)
LUNA is up by 46.2% from last week and is by far one of the best performing tokens in that timespan. LUNA is beginning to send bullish signals once more and would be a good token for traders to focus on during this period. Traders should consider buying if prices dip towards the 2,200 Baht support level this week. If LUNA can maintain its uptrend, it will look to test resistance at the 2,8000 Baht level.
Uniswap (UNI)
UNI is up by +6.6% from last week; however, its overall trend is still bearish. If support at 250 Baht can remain intact, traders could consider accumulating UNI during this period. If it can break through resistance at 380 Baht, it is entirely possible that we will see another bull run for UNI.
Trading and Investment Considerations For The Week
The Russia-Ukraine conflict continues to leave the market in a state of uncertainty. Macro factors like whether NATO or other countries will increase their involvement could cause another sell-off, particularly if the conflict escalates. If the situation can stabilize, the market is likely to recover.
Here are two potential scenarios that could affect BTC price:
Scenario 1: Peace talks begin in earnest, and the conflict is contained to just Russian and Ukrainian forces. BTZ will likely return to an uptrend.
Scenario 2: Peace talks do not occur, and Russia increases its annexation efforts within the area. If violence does not escalate, the market may move sideways; however, if NATO forces are deployed or Russia invades another country, the market will likely see a heavy sell-off again.
If the situation remains ambiguous, investors will likely see a risk-off environment where they will look to cash out and minimize risk. Conversely, if there is greater clarity regarding the geopolitical situation, sentiments will likely shift, and the market will enter risk-on mode instead.
Meanwhile, by this Wednesday, Jerome Powell, Chair of the US Federal Reserve, is expected to have revealed the monetary policy and economic outlook moving forward as he testifies before the US Congress.
Finally,.Smart Contract Platform tokens are beginning to recover, with LUNA leading the rally. In contrast, Metaverse and GameFi tokens have seemingly gone quiet this week. Focus on trading the tokens that are outperforming the market for now.
*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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