Bitazza Crypto Weekly: Market Activity Picking up as Ethereum 2.0 Upgrades Near Completion -

Crypto Weekly: 25 – 31 July 2022

Ethereum co-founder Vitalik Buterin says that by the end of the Ethereum 2.0 upgrade roadmap, the Ethereum network will be able to handle up to 100,000 transactions per second. This jump from Ethereum’sEthereum’s current transaction speed of 30 tx/s to its projected 100,000 Tx/s speed would make Ethereum faster than even Solana, the current reigning blockchain regarding transaction speed.

Ethereum’s much-anticipated “the Merge” upgrade was successfully deployed on its Sepolia testnet, bringing Ethereum even closer to its long-awaited transition from Proof-of-Work to Proof-of-Stake. Ethereum is set to launch just one more testnet before deploying the update on the Ethereum mainnet.

A report from JPMorgan opines that the worst of the Crypto market downtrend is over. Retail demand and investor sentiment seem to be improving with the Ethereum merge up ahead, according to the bank.

However, digital asset manager Grayscale Investments argues that the crypto bear market may drag on for another 8 months, with Grayscale’sGrayscale’s analysts noting that crypto market cycles usually last about 4 years as measured from peak to trough. Considering the current price and market cycle of BTC, Grayscale argues that now is a “high-value buying opportunity” for investors, with the window potentially lasting for some time.

Tesla has announced its sale of $936 million worth of Bitcoin as part of the EV company’s regular quarterly upgrade. The sale represents a 75% reduction in BTC holding from Tesla’s portfolio, bringing the current value of BTC held by Tesla to just $218 million after purchasing $1.5 billion worth of BTC in early 2021.

Coinbase has confirmed it had no financing exposure to embattled crypto firms that have filed for bankruptcy, such as Celsius, Voyager, and Three Arrows Capital, following rumors that the Nasdaq-listed crypto exchange may be facing its own liquidity crisis. Coinbase alleges that the issues faced by these companies were foreseeable and are credit-specific problems, not crypto-specific, with Coinbase mitigating their risk by not engaging in similar high-risk lending practices.

Dubai has unveiled its “Dubai Metaverse Strategy” – its ambitious plans to position Dubai amongst the top 10 metaverse economies globally and the first in its region. Dubai’sDubai’s vision for the Metaverse sector will support as many as 40,000 additional virtual jobs, primarily in Web3 and metaverse-related fields and generate up to $4 billion for the city’s GDP by 2030.

Popular Play-to-Earn game Axie Infinity has revealed that the number of daily active users has plummeted by over 83% in Q2 2022, citing the $600 million wallet hack and an overall declining NFT market.

Bored Ape Yacht Club (BAYC) creators Yuga Labs have released its Otherside litepaper, detailing the foundational principles of the metaverse project co-developed by Yuga Las and Improbable. Meanwhile, ApeCoin (APE), the crypto asset that will be used as currency in the Otherside metaverse, has outperformed most crypto assets over the past week.

Weekly Technical Analysis: 25 – 31 July 2022

Bitcoin (BTC)

BTC will have to surpass resistance at the $25,000 level to be able to test its critical subsequent resistance level at the $29,000 mark, which will confirm an upwards reversal. If support at $25,000 cannot remain intact, investors are advised to focus on its short-term support level at $20,000; if it falls below this level BTC may continue falling until it retests its previous low at the $17,000 level.

Ethereum (ETH)

Ethereum’s impending upgrade to Ethereum 2.0 has had a profound effect on its price growth, particularly when compared to BTC’s stagnant performance recently. If the $1,200 support level can remain intact, ETH could go on and test the major resistance level at $1,900. However, the $1000 support level must remain intact to support its upward momentum and maintain its rally.

Optimism (OP)

OP is up +53% over the past week and could manage an upwards reversal if it manages to surpass its major resistance level at 40 THB. If the 22 THB support level can remain intact, investors should consider entering positions on the Layer 2 scaling solution protocol.

Ethereum Name Service (MATIC)

ENS is up +37.8% over the past week; its overall trend remains downwards until it manages to break through the major resistance level at 600 THB and confirm an upwards reversal. Meanwhile, Investors are advised to enter positions if prices approach the 375 THB support level. If this support level can remain intact, the overall trend will likely continue upwards.

Trading and Investment Considerations For The Week

The US Dollar Index (DXY) has started to decline after a long period of setting new highs this year. Consequently, Bitcoin will likely have the opportunity to recover while investor sentiment towards Ethereum has been improving as the Ethereum 2.0 upgrade looks closer than ever. With both market leaders poised to rally, other Layer 1 and Layer 2 tokens may be able to rise alongside as well. Investors are advised to look for an opportunity to invest when prices drop.

The week investors are advised to keep an eye on the release of critical economic figures and the FOMC meeting on Wednesday 27th July and Thursday 28th July. Analysts are anticipating that the FED plans to increase interest rates by about 0.75%, which is not as high as previously expected. The market is likely to respond in a neutral manner or even positively, which in turn could support Bitcoin’sBitcoin’s price.

Upcoming GDP figures for Q2 will determine whether the FED will continue to tighten its monetary policies. If GDP numbers are strong, this may give the FED the confidence they need to tighten its monetary policies, thereby pressuring the market. However, if GDP this month is weak, this will likely benefit the market as the FED would be unlikely to tighten its monetary policies in the face of declining GDP figures.

Investors who do not want to deal with fluctuations are advised to wait for the release of the minutes from the FOMC meeting before investing any further. The market remains indecisive, with the immediate trend likely to be unclear until there is greater clarity on monetary policies moving forward or whether or not the US economy is trending towards a recession.

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