Crypto Weekly 15 – 21 August 2023
U.S. SEC Delays Decision on ARK 21Shares Spot Bitcoin ETF. The U.S. Securities and Exchange Commission (SEC) has postponed its decision regarding the approval of the ARK 21Shares Spot Bitcoin ETF, proposed by ARK Investment Management. A definitive decision is anticipated in January 2024. Cathie Wood, Founder and CEO of ARK Investment Management, has suggested that the SEC may plan on approving the Spot Bitcoin ETF simultaneously with Grayscale’s proposal, which is currently up for review by the SEC over a denied application to convert its Bitcoin Trust into a Bitcoin ETF.
Visa Explores Ethereum Payment Solution. Global payment giant, Visa, is piloting a new solution to support payments on the Ethereum blockchain. This will allow end-users to transact on the Ethereum blockchain without necessarily holding ETH to pay for gas fees, offering an option to pay transaction fees with traditional fiat currency for increased user convenience.
Binance Labs Invests in Curve DAO Token. Binance Labs has made a $5 million investment in Curve DAO Token (CRV) and is introducing the Curve platform on the BNB Chain. Notably, Curve stands as one of the largest DEXes specializing in stablecoin swaps, boasting a total asset value locked in its system of around $2.4 billion.
Curve Finance Recovers Lost Funds. Curve Finance announced that it has successfully recovered approximately 70% of the $50 million lost from a recent hacking incident. The recovered funds were directly returned by multiple hackers involved or with assistance from MEV bot runners, such as c0ffeebabe.eth.
Trading Volume Drop in Play-to-Earn Tokens. There has been a significant 98% decline in the trading volume of Play-to-Earn tokens like AXS, ENJ, SAND, and GALA in June and July, compared to their peak in November 2021. Furthermore, the prices of these tokens have decreased by over 90% from their all-time highs last year.
Lido’s Total Value Locked Surpasses $15 Billion. Lido’s TVL (Total Value Locked) has surpassed $15 billion for the first time since May 2022. There has been a consistent net inflow of ETH deposits into the Lido platform every month. It’s estimated that more than 8 million ETH staking transactions will be made on the platform in the coming month.
BNB Smart Chain to Undergo Dual Hard Forks. Managed by Binance, the BNB Smart Chain is set to undergo two hard forks throughout August 2023. The primary objective is to enhance compatibility with other EVM (Ethereum Virtual Machine) blockchain networks. The subsequent hard fork is scheduled for August 30, 2023.
Weekly Technical Analysis: 15-21 August 2023
Bitcoin (BTC)
BTC has experienced a slight recovery but continues to move in a directionless pattern. Current trading strategies should assume/focus on a sideways trend for BTC during this week. Key support lies at $28,000, with resistance at $32,500. Bitcoin’s price volatility has decreased to some of its lowest levels in recent years, potentially making short-term trading challenging. A clearer direction for BTC might be necessary before committing to trading positions.
Ethereum (ETH)
ETH has shown minor upward adjustments, yet its major trend remains sideways. Prices are yet to take a clear direction. Breaking past the critical resistance at $1,900 could indicate a bullish trend, but dropping below the support level of $1,700 may suggest a bearish outlook for ETH. Strict trading discipline is recommended during this period.
ThorChain (RUNE)
RUNE surged by 48.6% over the past week. However, its significant price rise suggests an overbought condition, potentially leading to a price contraction later this week. The initial support is pegged at 46 THB. If this level holds, RUNE’s momentum could continue with a resistance target set at 60 THB.
Coin98 (C98)
Overall, C98 is up by 22.8% over the past week, though it experienced a considerable price contraction during this period as well. As long as the price doesn’t breach the new low support level of 5.20 THB, it could continue its recovery. The first resistance level is found at 6.80 THB. The current strategy leans towards buying on price dips.
Trading and Investment Considerations For The Week
U.S. July CPI Figures Released. The Consumer Price Index (CPI) for July was reported at 3.2%, a slight increase from the previous month’s 3%. This figure came in below market expectations, which had anticipated a 3.3% increase. Despite the release, Bitcoin’s price showed minimal reaction to the news.
Upcoming Federal Reserve Meeting Insights. On Wednesday, August 16th, the results of the most recent Federal Reserve policy committee meeting will be disclosed. Market participants will be keenly observing the committee’s perspective on future monetary policies, which may influence the direction of the U.S. dollar.
Anticipation Surrounding U.S. SEC’s Decision on Bitcoin ETFs. Investors are closely watching the U.S. Securities and Exchange Commission’s (SEC) impending decision regarding the establishment of Bitcoin ETFs by prominent financial institutions, including Blackrock, Fidelity, and Bitwise. These decisions are slated for September 1st and 2nd. Approval would likely serve as a significant catalyst for the crypto market. However, there remains a possibility that the decision could be deferred to as late as January 2024.
Increased Volatility Expected in the Crypto Market. As the dates approach for the potential approval of Bitcoin ETFs, the crypto market may experience heightened volatility. Traders should exercise caution and diligence 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/us-sec-deems-spot-bitcoin-etfs-filings-as-inadequate-report
https://cointelegraph.com/news/fidelity-renews-push-for-spot-wise-origin-btc-trust-making-it-7th-applicant-this-year
https://www.theblock.co/post/236904/microstrategy-bitcoin-12333-btc-for-347-million
https://cointelegraph.com/news/blackrock-bitcoin-etf-grayscale-sec
https://cointelegraph.com/news/bitcoin-crypto-investments-largest-weekly-inflow-since-july-2022
https://cointelegraph.com/news/ethereum-layer-2-optimism-transactions-surged-following-bedrock-upgrade-nansen
https://cointelegraph.com/news/hong-kong-establishes-task-force-web3-development
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