Crypto Weekly: 24 – 30 April 2023
Since the Ethereum upgrade to the Shanghai version, more than 1 million ETH have been withdrawn from the network, and 373,040 ETH have been deposited since the upgrade. The interest rate for ETH staking remains below the 5% mark.
Lido Finance’s Total Value Locked (TVL) on smart contracts has exceeded 6 million ETH, or approximately $12 billion in value. The increase in Lido’s deposits can potentially be attributed to Ethereum’s Shapella upgrade, which has boosted liquid staking. Since January, Lido’s TVL has increased by more than 20% from 5 million ETH and continues to show signs of even more growth. The platform has more than 141,000 ETH depositors at the time of writing.
Data from Glassnode indicates that the fee for transferring funds on the Bitcoin Lightning network is 0.0029%, which is 1,000 times cheaper than Visa and Mastercard, with a fee of $0.84 for transferring 1 BTC at a price of $28,800.
Ethereum Name Service users can now choose to pay with fiat currency, from channels including Apple Pay, Google Pay, debit, and credit cards, instead of just via Ethereum. This change aims to reduce barriers to entry for the majority of people who do not yet have a digital wallet.
Electric car manufacturer Tesla reported no additional Bitcoin transactions in the first quarter of this year, meaning the company maintained a total holding value of 184 BTC without any changes for three consecutive quarters. However, profits from this holding have not been recorded in their accounting reports.
PancakeSwap proposed to reduce the annual inflation rate of its CAKE token to 3-5% compared to the current level of 20%. Token holders will be allowed to vote on this change. Currently, PancakeSwap distributes tokens to incentivize users with returns. This shift in tokenomics could lead to deflationary pressure on the CAKE token in the future.
Weekly Technical Analysis: 24 – 30 April 2023
Bitcoin (BTC)
BTC experienced a decline towards the end of the previous week, trending downwards to its crucial support level at $25,200. If this support level cannot remain intact this week, investment could slow down as the upward trend might be lost. BTC’s Relative Strength Index (RSI) also has a chance to reach its previous low. However, if the market remains stable, investors may consider buying, with the short-term resistance level at $31,000.
Ethereum (ETH)
ETH followed BTC’s decline, with its short-term trend suggesting that traders should pay close attention to the $1,800 support level. If this support level is maintained, the likelihood of a recovery remains. The short-term resistance target is at the previous high of $2,200, with a potential sideways upward trend.
Optimism (OP)
OP is up by +13.7% over the past week, although it experienced a significant drop in price. Analysts anticipate a focus on the 70 THB support level, which was the previous low. If the market falls below this level, investment may slow down, but if the market remains stable, there could be a buying trend with resistance at the previous high of 94 THB.
Ziliqa (ZIL)
ZIL is up by +1.7% over the past week, and its price has been quite volatile in this timeframe. Traders should focus on the 1.04 THB support level. If the market remains stable at/above this level, ZIL may adjust upward to test its previous resistance level of 1.24 THB. However, if it falls below the 1 THB support level, a downward trend is likely.
Trading and Investment Considerations For The Week
This week, significant earnings announcements from major US market players are expected, particularly from large technology companies such as Microsoft and Alphabet on Tuesday, followed by Meta on Wednesday. Amazon’s earning announcement on Thursday could also have a significant impact on the Nasdaq index, which can have a moderate correlation with Bitcoin prices. Positive earnings results from these companies could potentially boost Bitcoin prices.
Simultaneously, earnings reports from other large US-based companies will be released, providing insights into the overall health of the US economy. If these reports paint a bleaker picture than anticipated, it could signal an economic downturn and potentially lead to a change in the Federal Reserve’s policy, making the FED adopt a less hawkish approach to monetary policy-making, such as delaying interest rate hikes.
Furthermore, on Thursday, the market anticipates the announcement of the US economy’s first-quarter growth forecast, expecting growth to comine in at around 2%, a decline from the previous quarter’s mark of 2.6%. Additionally, on Friday, the Core PCE index will be announced, reflecting inflation in the production sector. If both economic indices come in lower than expected, they could have a positive overall impact on the crypto market.
The release of other key economic figures are not anticipated until the beginning of May, when the FED will convene once more. At present, the market lacks major events that could significantly affect overall prices. Currently, the general trend for Bitcoin prices is a sideways upward movement, and the recommended strategy for this type of price trend is “Buy on Dip.” This approach involves purchasing when prices dip and investing in altcoins that exhibit stronger market resilience and have performed relatively well compared to the rest of the market.
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/ethereum-name-service-adds-fiat-payments-for-ens-domain-registrations
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