Bitazza Crypto Weekly: MicroStrategy-Tesla-LFG Among The Most Influential BTC Investors -

Crypto Weekly: 25 April – 1 May 2022

Despite Grayscale’s status as the world’s largest Bitcoin fund, the top 3 most influential and prominent group of Bitcoin investors are likely Michael Saylor’s MicroStrategy, Elon Musk’s Tesla, and the Do Kwon-founded LFG.

In response to the rumors that Microstrategy has been quietly selling Bitcoin, MicroStrategy CEO Michael Saylor publicly dispelled the notion on Twitter, citing regulations that would force MicroStrategy to publicly disclose any BTC sales to the SEC and shareholders. This would be in line with public comments made by Saylor in the past that have consistently affirmed his status as a long term Bitcoin bull, such as when he claimed that “it [Bitcoin] is a million times better than gold” or that the MicroStrategy CEO considers Bitcoin a 100-year investment.

Meanwhile, according to Tesla’s quarterly earnings report, the Elon Musk-led automotive/clean energy company’s Bitcoin holdings remain unchanged at $1.26 billion. In the past four quarters, Tesla did not report any additional buying or selling of Bitcoin, nor were there any recorded impairments to the holdings due to the relatively flat price of Bitcoin in that time period.

Between the aforementioned three groups, it is undeniable that if news were to break that any of their Bitcoin holdings were being sold, even in smaller quantities, there would almost certainly be a significant negative impact on investor sentiment, likely putting the market in a bearish state for some time.

According to data from Google Trends, retail interest in Bitcoin appears to be slowing, with the search value for worldwide Bitcoin queries dropping to its lowest point since December 2020. Peak interest and highest searches for the “Bitcoin” keyword is still back in 2017 at the advent of the crypto investing boom.

Jerome Powell, Chairman of the FED, seems to have all but confirmed the 0.5% interest rate hike at the upcoming FOMC meeting on May 3 – 4. Powell affirms that the US central bank is committed to bringing down inflation and that raising interest rates are possible as soon as next month. With inflation and consumer price rising to a 40-year high, the FED will be targetting a long-term goal of 2% inflation.

IOHK, the company behind Cardano, tweeted that there are nearly 900 projects in development on the network, growing by roughly 400 since March 11. Additionally, the number of ADA wallets has increased by 100,000 in just the past month, with the total figure standing at approximately 3.268 million as of April 19.

Tron founder Justin Sun has announced that Tron will be launching their own decentralized algorithmic stablecoin dubbed USDD on May 5, which will be overseen by the TRON DAO. The DAO will manage the stablecoin reserves, which will allegedly offer 30% APY initially as well as a custody reserve of up to $10 billion in liquid assets as collateral backing for USDD.

Finally, blockchain-based gaming company The Sandbox is reportedly gearing up to raise $400 million at a $4 billion valuation from both new and existing investors. This news comes less than six months after The Sandbox successfully raised $93 million in a Series B round led by SoftBank’s Vision Fund 2.

Weekly Technical Analysis: 25 April – 1 May 2022

Bitcoin (BTC)

BTC’s trend remains sideways with no obvious direction of its trend moving forward. However, RSI has not hit a new low, so we could still see a Bullish Divergence if the prices fails to create new lows. Short-term support is set at $38,000; if broken, BTC may go on to test the $34,000 level. Resistance is set at $44,000 this week.

Ethereum (ETH)

ETH continues to trend sideways, but concerns are growing regarding ETH prices failing to create new highs. Additionally, prices have fallen out of the range that many anticipated a breakout. In the short term, consider slowing down any investment into ETH. Keep an eye on if the support level at $2,500 can remain intact; if so, consider entering a position. ETH will be targetting resistance at the $3,500 level this week.

ApeCoin (APE)

APE rallied by +42.6% in the past week, sucesfully reversing into an uptrend. Keep a close eye on support at 520 Baht; if support remains intact, look for APE’s uptrend to continue. APE will look to test the 680 Baht resistance level this week, which will be a new high if successful.

Curve DAO (CRV)

CRV is up +24.6% from last week. The trend is bullish and will be targeting the 102 baht resistance level. If successful, CRV’s uptrend may continue for some time. Keep a close eye on the 86 baht support level; if it can remain intact, this rally has the chance to continue.

Trading and Investment Considerations For The Week

Both the crypto and equities markets continue to be negatively impacted by the FED’s tightening monetary policy. However, in terms of price, Bitcoin has been able to outperform major US stock market indexes in this period, including the NASDAQ and S&P500, with BTC prices able to refrain from creating lower lows.

Traders and investors are advised to keep a close eye on any meetings by the US Senate or Congress, which could provide greater clarity on what the FED’s monetary policy will be moving forward. Additionally, Bitcoin Options and Futures contracts will be expiring on April 29. Depending on how potential short selling and put options close, we could see a positive impact on the market.

Furthermore, keep an eye on the Volatility Index (VIX), as recent signals indicate that we are approaching overbought conditions. If true, this could cause higher-risk assets to see a rebound as well.

It is possible that the market may continue to trend sideways this week as we hopefully enter a short-term recovery. However, the upcoming trend still remains uncertain until we hear the results from the FOMC meeting on May 3 – 4.

With the market remaining somewhat stagnant, only a few tokens have been able to outperform the market significantly. These include Apecoin, which benefited massively from the speculation surrounding Yuga Lab’s upcoming Otherside Metaverse MMORPG game, and LUNA, thanks to TerraUSD’s (UST) continually growing adoption as a stablecoin by crypto users.

*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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