Crypto Weekly: 18 – 23 April 2023
Hong Kong’s Finance Minister recently stated that now is an appropriate time to consider promoting the adoption of Web3 technology in Hong Kong, despite the current volatility of the crypto market. This decision is supported by the city’s efforts to position itself as a leading global fintech hub. The city will continue to allow businesses to apply for licenses, according to an article on Coindesk.
Bloomberg reported that ZA Bank, Hong Kong’s largest virtual bank, is preparing to offer account opening services to companies in the crypto industry, including digital-to-fiat currency exchanges such as Hong Kong Dollar, Yuan, and US Dollar. As part of Hong Kong’s push to support the crypto sector, ZA Bank will also offer crypto conversions and accounts, further expanding the city’s crypto services.
Additionally, Binance CEO Changpeng Zhao also commented that Hong Kong banks starting to support crypto will attract more capital into the city due to regulatory support.
The International Monetary Fund (IMF) is set to present guidelines on digital asset regulation in July, citing FTX as an example of why banks dealing with crypto face challenges. The organization is also working with the G20 to reveal a document on crypto regulation in September.
The US Congress unveiled a new draft of a bill that looks to regulate stablecoins, assigning the Federal Reserve to oversee non-bank stablecoin issuers such as Tether and Circle, while US banks must also comply with regulations put forth. The proposed bill is designed to address concerns around financial stability and consumer protection.
eToro, a leading social trading platform, is set to offer unlicensed crypto trading services for Twitter users after announcing their partnership. Twitter users can view real-time crypto prices and place trade orders through the $Cashtags service, allowing them to trade cryptocurrencies directly on the social media platform.
Metamask, a popular cryptocurrency wallet, launched a feature allowing users to buy crypto with credit cards, PayPal, or bank accounts, available in 189 countries worldwide. According to Metamask’s news release, the new feature aims to provide an easy and seamless experience for users to purchase cryptocurrencies within the wallet’s interface. Individual retail conditions vary according to each country’s laws.
Dune Analytics reported that the number of accounts or wallets on Arbitrum has exceeded 5 million, with over 4 million active accounts in the Arbitrum ecosystem. The recent airdrop event created significant hype, contributing to the increase in accounts. There have been nearly 200 million transactions completed since the chain’s inception, following the airdrop of 1.275 billion tokens to a total of 625,143 wallets.
Weekly Technical Analysis: 18 – 23 April 2023
Bitcoin (BTC)
BTC successfully reached the $30,000 level, despite its RSI entering overbought territory. The bullish trend still has the potential to continue, with short-term resistance at $32,000. However, if the price adjusts downward, a key support level the market could use as a buying point is $25,200.
Ethereum (ETH)
ETH successfully broke through the $2,000 level, and although its price has contracted since, the trend remains upward. The medium-term target is $2,200, with ETH’s support level raised to $1,800. The market may wait to buy when the price contracts.
Arbitrum (ARB)
ARB is up by +40.3% over the past week, creating a new high after opening for trading on Bitazza. ARB’s trend has the potential to continue upward, with a target of 64 baht. The support level the market could use as a buying point when the price contracts is 50 baht.
dYdX (dydx)
DYDX is up by +22.5% over the past week and is recovering into an upward trend once again. The market may use a price contraction as an opportunity to buy at the first support level of 94 baht, while the first resistance target is at the previous high of 110 baht.
Trading and Investment Considerations For The Week
The announcement of the US March CPI Index came in lower than expected at 5%, compared to the previous month’s level of 6%. This is a positive factor for the cryptocurrency market until the next Federal Reserve monetary policy meeting in May. The declining inflation rate, along with various economic indicators, suggests a higher probability that the United States may enter a recessionary period, prompting the FED to potentially revert to a more accommodative monetary policy stance.
The Bitcoin Dominance Index surged to a high of 49% and has since contracted, while Ethereum has outperformed Bitcoin, signaling the potential arrival of an altcoin season. Several tokens have experienced strong buying interest. Key tokens to watch include Layer 2 blockchain projects such as ARB, OP, IMX, and DYDX, as well as Liquid Staking projects like LIDO, which stand to benefit from the completed Ethereum Shanghai upgrade.
However, starting this week, exchanges that permit ETH staking will gradually unlock withdrawals. There may be a significant number of short-to-medium-term investors that have staked ETH who may look to take profit now that the latest Ethereum update allows withdrawal, meaning that selling pressure on ETH could potentially increase. Nonetheless, the impact is not expected to be severe.
In the coming period, US stock market earnings announcements may have implications for the cryptocurrency market, with stocks such as TESLA, MICROSTRATEGY, BLOCK, and COIN potentially influencing market dynamics.
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/u-s-congress-to-introduce-new-draft-bill-for-stablecoins
https://cointelegraph.com/news/total-arbitrum-accounts-surpass-5m-after-airdrop-hype-report
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