Crypto Weekly 10-16 July 2023
Larry Fink, CEO of BlackRock, has expressed his opinions on Bitcoin, stating that it can be a cross-border asset that is not dependent on any specific currency. Therefore, Bitcoin has the potential to serve as an alternative investment asset to hedge against inflation. BlackRock is currently in the process of filing for a Bitcoin ETF with the U.S. SEC.
Cathie Wood, CEO of ARK Investment, has revealed that there is a high chance of her company being the first to receive approval for a Bitcoin ETF from the U.S. SEC. ARK Invest is on the SEC’s decision-making list, with a potential approval date of August 13. Additionally, two other entities, 21Shares and Cboe, are also on the list. Furthermore, Ark Invest is likely to partner with Coinbase for digital asset custody.
Nikolaos Panigirtzoglou, Managing Director at JPMorgan in London, has disclosed that the approval of a Bitcoin ETF by the U.S. SEC could increase liquidity in Bitcoin trading. However, it may not significantly impact the industry’s popularity or act as a major turning point, as most investors still prefer investing in gold ETFs.
Goldman Sachs reports a decrease in the amount of BTC and ETH held on centralized exchange (CEX) platforms in June. This withdrawal trend is attributed to increased regulations, with some investors opting to store their cryptocurrencies in cold wallets. Currently, only 4% of BTC, and 5.8% of ETH remain on CEX platforms.
Grayscale, a major digital asset management firm, has added LDO tokens to its DeFi fund. LDO now ranks second in investment weightage after UNI, accounting for 19.04%, with other tokens such as AAVE, MKR, CRV, and SNX following suit.
Yat Siu, the founder of Animoca Brands, and a key investor in The Sandbox project, is one of the 15 experts invited to be advisors for Hong Kong’s Promoting Web3 Development initiative. He suggests that the United States may miss significant opportunities if it neglects to support the Web3 industry.
Bloomberg reports that Sega, a major Japanese gaming company, plans to cancel the development of blockchain-based games, viewing the Play-to-Earn model as detrimental to the overall gaming experience. Nevertheless, the company still intends to allow external developers to create blockchain games under its umbrella.
Weekly Technical Analysis: 10-16 July 2023
Bitcoin (BTC)
BTC has been moving sideways for two consecutive weeks without any new positive factors to support its price. The direction may become clear after the U.S. SEC decides whether to approve a Bitcoin ETF, which is scheduled for next month. In the short term, the support level remains at 1,020,000 THB, while the resistance level is at 1,116,000 THB.
Ethereum (ETH)
ETH lacks positive factors to support its price due to a decrease in blockchain transaction volume. As a result, it continues to move sideways. The market trend focuses on trading within the range of support at 63,000 THB and resistance at 71,000 THB. However, it’s worth noting that if BTC adjusts upward for a certain period, it could be a favorable period for ETH to perform well.
Solana (SOL)
SOL has increased by 8.3% in the past week, showing a gradual recovery. The trend is still in the process of slow recovery. The market may consider buying when the price consolidates or experiences a dip (Buy on Dip strategy). In the short term, the first support level is around 700 THB, and if it remains above this level, the next target resistance is at 840 THB.
Convex Finance (CVX)
CVX value has increased by 6.4% in the past week, indicating an upward trend. However, to ensure that the trend continues, the price must not create new lower lows, and must be able to establish new higher highs consistently. The estimated initial support level is 135 THB, with the next resistance level at 152 THB.
Trading and Investment Considerations For The Week
The announcement of lower-than-expected Non-Farm Payroll figures for June, although higher than the projected 200,000 positions, did not have a significant impact on the weakening of the U.S. dollar, and did not affect the overall movement of Bitcoin, which continues to move sideways.
The key highlight of this week is the announcement of the U.S. inflation rate on Wednesday, July 12. The market expects it to be 3.1%, lower than the previous month’s rate of 4%. If it comes out at this level, it could have a positive impact on the market as it would be close to the Fed’s 2% inflation target. This could lead the Federal Reserve to make a single interest rate hike decision, as opposed to the previously expected two hikes.
However, the FED Watch Tool currently gives a 90% chance of a 0.25% interest rate hike announcement at the end of July. This probability may decrease if the inflation rate is announced to be lower than expected.
The direction of Bitcoin’s price is currently influenced by the decision on the approval of a Bitcoin ETF by the U.S. SEC, which is a significant variable for the future price trend of Bitcoin. Without any significant updates on the approval of a Bitcoin ETF, the market is likely to continue moving sideways, with a potential upward bias. However, if there is heavy selling pressure, significant players may enter the market to buy. In the meantime, the market may focus on short-term trading for profit during this period.
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/etf-approval-may-boost-bitcoin-liquidity-but-wont-be-game-changer-jp-morgan
https://cointelegraph.com/news/bitcoin-international-asset-black-rock-ceo-bullish-remarks
https://www.coindesk.com/markets/2023/07/04/bitcoin-ether-supply-on-exchanges-fell-in-june-goldman-sachs/
https://cointelegraph.com/news/web-3-crypto-u-s-regulatory-uncertainty-could-be-hong-kong-s-gain-yat-siu
https://www.theblock.co/post/238487/grayscale-makes-lido-the-second-heaviest-component-in-its-defi-fund
https://www.coindesk.com/web3/2023/07/07/sega-rethinks-gamefi-plans-coo-calls-blockchain-gaming-boring-bloomberg/
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