Crypto Weekly: 21 – 27 November 2022
Top-tier on-chain research firm Nansen reports that post-FTX-crisis, more capital is being withdrawn from major exchanges than deposited. Notably, since 12 November, more than $1.3 billion in ETH has been withdrawn from centralized exchanges. Of note, though, leading decentralized exchanges like Curve Finance seem to be benefiting from this outflow of capital from CEXs, with Curve registering a $26.5 million inflow seemingly a result of traders trusting DEXs more than CEXs in the wake of the FTX collapse.
On-chain data has revealed that investors are withdrawing funds from exchanges at a rate not seen since April 2021, with over $3 billion in Bitcoin withdrawn over the past weeks. Data from on-chain analytics firm Glassnode indicates that the number of wallets receiving BTC from exchange addresses hit almost 90,000 on 9 November.
DappRadar reports that the total value locked (TVL) across all DeFi platforms has dropped by more than 20% since early November. The biggest loser in terms of TVL is Solana, with the Ethereum-alternative blockchain seeing its TVL plunge by nearly 65% from $1.65 billion to $585 million. On a more positive note, though, the number of DeFi Unique Active Wallets seems to have returned to normal levels over this past week.
El Salvador President Nayib Bukele announced on 16 November that the Central American nation would start purchasing BTC on a daily basis starting from 17 November. The announcement comes nearly three months after the government made its last BTC purchase in July 2022 and more than a year since El Salvador started buying BTC in September 2021.
Ark Investment has purchased 315,259 shares worth about $2.8 million in the Grayscale Bitcoin Trust for its ARK Next Generation Internet exchange-traded fund. The sale is the fund’s first purchase since July 2021. Last week the Cathie Woods-led investment management firm also purchased shares in Coinbase in its other exchange-traded funds.
Tether stated it was conducting a chain swap to move 1 billion USDT from Solana to Ethereum. The USDT issuer has insisted that the move would not affect the total/overall supply of the stablecoin. Tether also publicly stated that the Alameda Research bankruptcy as part of the FTX collapse had not affected USDT’s functions or issuance whatsoever.
USDC-issuer Circle has announced that it is adding Apple Pay support. Users will be able to purchase crypto with Apple Pay, making accessing crypto for non-crypto-natives easier while also benefiting traditional businesses by allowing them to gain exposure to crypto retail payments. According to Circle, this move is intended to bring the crypto and traditional payment system closer together as part of a push towards mass adoption.
Binance NFT Marketplace has announced its integration with the OpenSea platform. The marketplace will now support Ethereum-based, and BNB Smart Chain-based NFTs with low fees and planned support for additional platforms and blockchains in the future.
Weekly Technical Analysis: 21 – 27 November 2022
Bitcoin is trending sideways down with no signs of a clear reversal point soon. BTC may potentially create lower lows this week, so traders are advised to keep a close eye on the $13,000 support level. BTC will have to break through its initial resistance at $19,000 first before it can challenge the critical resistance level at $20,500.
ETH is trending sideways down and could start making lower lows this week. If prices fall below $1,000, ETH may plunge as low as its $880 support level. If support can remain intact, ETH will look to challenge its initial resistance level at $1,600. In the short-term, there is little positive news that could spark an ETH rally, so the market remains uncertain at this point in time.
SRM is up by +89.1% over the past week after recently hitting new lows at 4 baht. However, the fundamentals of SRM remain uncertain in the wake of FTX’s collapse, so traders are advised to exercise great caution when trading. Support for SRM is set at its recent new low of 4 baht, and resistance is set at the 16 baht level.
GF is up by 15.8% over the past week, with the GameFi token rallying after seeing increased buying pressure following its new low at 3.50 baht last week. However, GF’s overall trend remains bearish, and traders are advised to exercise high caution when trading. Support is set at 3.50 baht, and if GF can push past the 5.50 baht resistance level, we could see GF’s trend reverse upwards.
Trading and Investment Considerations For The Week
On 23 November, keep an eye on the release of the FED minutes from the latest FOMC meeting. It could provide critical insight into the FED’s potential decision regarding interest rates as we approach 2022’s final meeting. Analysts are expecting the FED to raise interest rates by 0.5%
The US stock markets will be closed this Thursday and Friday due to Thanksgiving. However, reports from the European Central Bank meeting are set to be published, which could affect the market. Overall though, the crypto market is still dealing with the aftereffects of the FTX collapse, and many are waiting to see if any other exchanges or projects could have similar problems or be caught in the wake of FTX’s downfall.
DeFi projects have been gaining more attention from the market as traders’ confidence in centralized exchanges hit an all-time low; however, these tokens have not rallied enough to constitute a true bull run yet. The majority of traders are keeping a close eye on whether Bitcoin can manage a reversal before investing any further. If the FUD can subside and there is no more unexpected bad news regarding major crypto projects, macroeconomic factors could contribute towards a potential crypto market recovery by the end of the year.
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– Past Returns/Past Performance does not guarantee future returns/performance.
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