Crypto Weekly: 20 – 26 March 2023
The market value of Bitcoin has increased by over 66%, a growth of more than $194 billion since the beginning of 2023. Bitcoin’s performance during this period is a higher growth rate than the S&P500 and NASDAQ indexes. Additionally, Bitcoin’s positive performance has inversely mirrored the market value of large US bank stocks, which have decreased by $100 billion since the start of 2023.
The CEO of Binance announced that they would use some of its $1 billion crypto industry recovery funds to convert BUSD coins into major market-cap cryptocurrencies such as BTC, ETH, and BNB to support the crypto industry during the recent downturn and stablecoin crisis, resulting in a recovery of the crypto market.
The upcoming Shanghai-Capella Ethereum upgrade, which allows users to withdraw staked Ether (stETH) from the Beacon Chain, is expected to occur on 13 April. More than 17.6 million ETH ($31.3 billion) has been staked, representing nearly 15% of the circulating supply overall, making this upgrade pivotal for the Ethereum ecosystem. Additionally, Coinbase has announced its support for ETH withdrawals after the upgrade.
Popular Ethereum Layer 2 blockchain Abitrum is preparing to distribute its ARB tokens to users who transact on its network via an airdrop. The total supply of ARB tokens is 10 billion, and developers will distribute 11.62% of the total supply during this upcoming airdrop. ARB can be used to participate in the governance of the Abitrum protocol.
Meta has stopped offering NFT services via Instagram, which operated under the Polygon chain, after beginning services in November of last year. Instead, the company is shifting its purpose to promoting other products to support creators, users, and businesses on the Meta platform.
Decentralized exchange Uniswap is officially live on BNB Chain, Binance’s Layer 1 blockchain, after more than 55 million UNI holders voted in favor of a governance proposal by 0x Plasma Labs to deploy Uniswap v3 on BNB Chain. By expanding to BNB Chain, Uniswap will be able to increase user growth, offer lower fees, improve cross-chain capabilities, and tap into new geographical markets.
Polygon has partnered with Unstoppable Domains to allow users to register decentralized domain names under the .polygon domain. Users will be able to send crypto and NFTs, and access and create dApps without revealing personal information or remembering hard-to-remember wallet addresses.
Microsoft is testing a Web3 wallet that supports cryptocurrencies and NFTs on its Edge web browser. The Microsoft Web3 wallet will be a non-custodial wallet that cannot access users’ codes and aims to allow Microsoft to better compete with Google’s Chrome browser.
The South Korean government has invested an additional $51 million in a Metaverse development fund to support startups and small Metaverse companies, as well as to support technology and regulatory issues that facilitate the growth of startups.
Weekly Technical Analysis: 20 – 26 March 2023
Bitcoin (BTC)
Ethereum (ETH)
OMG Network (OMG)
ImmutableX (IMX)
Trading and Investment Considerations For The Week
Bitcoin surged as news broke that banks in the United States and Europe were experiencing problems, causing capital to flow back into Bitcoin and gold instead of the traditional equities market. This was in conjunction with February’s CPI figures that came out at 6.0%, lower than market expectations, causing the value of the US dollar to weaken.
The common consensus within the financial market expects the FED to finally raise interest rates by 0.25% at the March 21-22 meeting, down from the previously forecasted 0.5% interest rate increase. The FED being forced to slow down its interest rate hikes will likely drive the price of Bitcoin higher. Therefore, it is critical to keep an eye on the FOMC meeting on 22 March to see how the FED proceeds with its interest rate policy this month.
The Bitcoin dominance index has continuously risen, causing altcoins to generate lower returns than the overall market. However, if Bitcoin remains above $25,200, altcoins could potentially see their own rally once Bitcoin’s rally beings to fade. In the short term, the market may tend to towards trading large-cap cryptocurrencies such as Bitcoin and Ethereum.
Key highlights also include monitoring the resolution of bank problems in the United States, which could affect the FED’s monetary policy. Whether the FED adopts a more relaxed approach, such as slowing down interest rate hikes or injecting liquidity into the market, or whether the FED insists on its previous hawkish monetary policy strategy could have significant implications for Bitcoin and the crypto market in the medium and long term.
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/silvergate-closes-exchange-network-releases-9-9m-to-blockfi/
https://cointelegraph.com/news/visa-and-mastercard-halt-new-crypto-partnerships-report/
https://u.today/polygon-matic-helps-brazilian-digital-bank-launch-nucoin-crypto-heres-curious-thing
https://www.theblock.co/post/215900/the-sandbox-sebastien-borget-future-corporate-partnerships
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