Crypto Weekly: 10 – 16 April 2023
DeFiLlama has revealed that Decentralized Exchanges (DEXs) experienced a significant increase in trading volume in March, marking the third consecutive month of growth in DEX trading activity. According to CoinDesk, this surge in volume was the highest in 10 months, likely due to traders moving towards DEXs to avoid issues arising from tighter regulations imposed on Centralized Exchanges (CEXs) in the United States.
Coinbase research indicates that transactions using digital currencies can save on costs and time compared to traditional financial systems. Transfers using BTC and ETH are 96.7% cheaper than conventional methods, with average costs of $1.5 and $0.75 per transaction, respectively. The research also shows that cryptocurrencies have the potential to eliminate up to 97% of traditional remittance fees.
On 3 April, Twitter temporarily changed its logo from the iconic blue bird to the Shiba Inu, the symbol of Dogecoin, causing the price of DOGE to surge by over 22%. However, as Twitter reverted its logo to the original design, the price of Dogecoin immediately declined.
MicroStrategy has announced its latest Bitcoin purchase of an additional 1,045 BTC, worth $29.3 million at an average price of $28,016. The company now holds a total of 140,000 BTC, valued at $4,170 million, with an average price of $29,803 per BTC. This purchase further solidifies MicroStrategy’s position as one of the largest corporate holders of Bitcoin.
Bitriver has revealed that, by the end of Q1 2023, Russia ranked as the world’s second most influential Bitcoin mining hub, generating 1 gigawatt of mining power. The United States leads the ranking with 3-4 gigawatts, surpassing Kazakhstan, which slipped in ranking due to stricter government regulations on energy consumption for Bitcoin mining.
A bug in SushiSwap’s smart contract resulted in a loss of over $3.3 million, as reported by Cointelegraph. However, SushiSwap has announced that it has recovered 300 ETH through whitehat security measures and is working to recover the remaining funds.
Data from DappRadar reveals that Polygon has become the second most popular blockchain for GameFi, overtaking Hive and Binance Smart Chain (BSC), as reported by Cointelegraph. The platform saw a 53% increase in wallet openings between February and March, totaling 138,081 UAW. This surge in user activity has helped Polygon surpass Hive and BSC in the gaming sector, while the top-ranking WAX blockchain maintains its position with twice the number of wallet openings.
Weekly Technical Analysis: 10 – 16 April 2023
Bitcoin (BTC)
BTC trend remains directionless for the third consecutive week, but fortunately, its medium-term outlook is still sideways-up. If a significant correction occurs, the first support level the market could recognize is at $25,200. However, if the decline continues, the market may see growing buying pressure at the $21,500 entry point. If the price drops below this level, the market may slow down its investments, but if it surpasses $30,000, there is a chance for a price adjustment upwards.
Ethereum (ETH)
ETH has been attempting to challenge the $2,000 resistance level. Keep an eye on this week’s performance, as there may be profit-taking opportunities with the upcoming Shapella upgrade. If the price surpasses $2,000, the next resistance level would be at $2,400. However, if selling pressure increases, the first support level would be at $1,650, followed by $1,350.
Bancor Network (BNT)
BNT has increased by +12.5% over the past week, breaking out of its sideways trend in the short term to test the medium-term resistance target at THB 24. If the price fails to surpass this level and adjusts downwards, the support level at THB 18 could be a potential buying opportunity. If the price drops below this level, the market may slow down its investments in BNT.
THORChain (RUNE)
RUNE has increased by +12.3% over the past week, with signs of an upwards reversal of its trend. For this rally to occur, RUNE will have to not create new lows below THB 50. If the price can be maintained above this level, the short-term resistance target is at THB 59, which is considered its previous one-month high.
Trading and Investment Considerations For The Week
The recent release of US nonfarm payroll figures and the unemployment rate did not have a significant positive impact on Bitcoin. However, the price did not react negatively either, leading to BTC’s sustained sideways trend, with no clear direction for price movement this week.
A key highlight for the upcoming week is the release of the Consumer Price Index (CPI) for March. The market anticipates a 5.2% CPI figure, a decrease from the previous month’s figure of 6%. Additionally, details from the recent FED policy meeting will be revealed, with the minutes potentially focusing on concerns regarding continued interest rate hikes, which could negatively affect the market.
The FED and market investors seem to have similar expectations that the interest rate hike in the May meeting is likely to be the last of the year. The CPI announcement and inflation figures will need to be roughly in line with expectations and market forecasts; otherwise, this could renew talks of additional rate hikes to combat inflation. Signs of continued interest rate hikes by the FED could have an overall negative impact on the market.
The overall cryptocurrency market remains directionless, with altcoins seeing some attention and being used for short-term profit-taking. At present, no single token has been able to generate consistent returns, suggesting that the market may be focused on short-term profits for the time being.
The Bitcoin Dominance Index has recovered, putting pressure on altcoins, with the trend likely to continue. Price trends and choices will have to be closely monitored after the CPI announcement to assess its potential impact.
Keep an eye on Ethereum, as the market may take profits before the Shapella version upgrade. Selling pressure may not be significant if staking withdrawals become available, but safe portfolio management, as always, remains critical, and investment risks should not exceed personal risk tolerance.
Disclaimer:
-Cryptocurrency and Digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to own risk profile.
– Past Returns/Past Performance does not guarantee future returns/performance.
*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.
Sources:
https://cointelegraph.com/news/crypto-could-eliminate-97-of-traditional-remittance-fees-coinbase
https://cryptoslate.com/russia-becomes-2nd-most-powerful-btc-miner-in-the-world/
https://cointelegraph.com/news/sushiswap-approval-bug-leads-to-3-3-million-exploit
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