Bitazza Crypto Weekly: EU Approves MiCA Bill Regulating Crypto Services and Activities

Crypto Weekly: 22 – 28 May 2023

The European Union’s Economic and Financial Affairs Council has approved the Markets in Crypto-Assets (MiCA) bill. The proposed legislation will oversee issuers of digital currencies, cryptocurrency exchanges, wallets, and stablecoins. Additionally, it will regulate asset custodians and require adequate security measures to comply with new requirements.

According to Goldman Sachs, 32% of family office businesses have shown interest in digital asset investments, while 26% have already invested, marking an increase from 16% in 2021. However, the proportion of those not interested in investing has also risen.

Microsoft, Goldman Sachs, Deloitte, S&P Global, and Moody’s have jointly unveiled the Canton Network, a blockchain platform designed specifically for the financial market using Web3 technology. The project currently has 30 participants, and there are expectations of increased participation in the near future.

Visa is experimenting with the Goerli testnet, developed on the Ethereum blockchain, to test transaction-free payments and reduce gas fees. This initiative aims to provide a more efficient and cost-effective payment experience, eliminating the requirement for recipients to hold ETH in their wallets.

CoinShares reported a significant outflow of funds from digital asset investments, with over $200 million withdrawn in the past week alone. This represents 0.6% of the total assets under management. Bitcoin continues to be the most popular digital asset among investors.

USDT-issuer Tether plans to allocate 15% of its profits to gradually invest in Bitcoin. Currently, it holds $1.5 billion worth of Bitcoin, which accounts for approximately 2% of Tether’s total reserves. The remaining 85% of the reserves consist of cash, cash equivalents, and other short-term deposits.

Leading Ethereum Layer 2 scaling solution Optimism is set to upgrade its mainnet network, known as Bedrock, on June 6. This upgrade will temporarily disable transactions for approximately 2-4 hours but aims to reduce transaction fees and enhance the network’s usability by minimizing bugs, making it easier for developers and consumers to use the network.

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Weekly Technical Analysis: 22 – 28 May 2023

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Bitcoin (BTC)

BTC showed some buying pressure during the middle of the week, but the lack of interest rate hikes from the Federal Reserve did not contribute significantly towards a BTC price recovery. The key support level to watch is at 880,000 baht, while the resistance level BTC will look to target is at the 950,000 baht mark. If BTC fails to break through this level, it will not be able to regain its upward momentum.

Ethereum (ETH)

ETH lacks new supporting factors to trigger an upward rally. The resistance level at 64,000 baht remains a medium-term target. While the support level at 59,000 baht remains intact for now, there is still uncertainty about ETH’s current direction.

 

Synthetix (SNX)

SNX has shown a +17.3% increase and is attempting to reverse its downward trend. However, if it fails to overcome the resistance level at 88 baht, its bearish trend will likely continue. The key support level to watch is at 76 baht, and maintaining this level will increase the chances of a bullish reversal.

 

Raydium (RAY)

RAY has experienced a +16.9% increase during the past week, but the price has been volatile during this period. Traders should be cautious and only enter buying positions if the price remains above the support level at 6.70 baht. If it falls below this level, it may result in losses. The target resistance level remains at the previous high of 8.40 baht.

 

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Trading and Investment Considerations For The Week

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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://cryptopotato.com/26-of-family-offices-invest-in-crypto-goldman-sachs-survey/
• https://decrypt.co/140082/microsoft-goldman-sachs-and-other-big-firms-back-launch-of-financial-blockchain
• https://cointelegraph.com/news/digital-asset-market-shrinks-as-fund-outflows-reach-200m-coinshares
• https://cointelegraph.com/news/eu-council-approves-mica-regulationshttps://www.theblock.co/post/231156/tether-bitcoin-investments-profits?utm_source=twitter&utm_medium=social
• https://www.theblock.co/post/230898/optimism-mainnet-bedrock-upgrade?fbclid=IwAR1iR7RNET38uF8esfvJYZdsA4o69d6H6TqDy_ru8PIN5ajGuTLTTLN5HA8
• https://www.theblock.co/post/231411/visa-taps-ethereums-goerli-testnet-to-experiment-with-account-abstraction

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