Crypto Weekly: 26 September – 2 October 2022
Interpol has reportedly issued a “Red Notice” to law enforcement worldwide for the arrest of Terraform Labs co-founder Do Kwon. Kwon moved from South Korea to Singapore earlier this year, where Terraform Labs is officially based, but his location has since become unclear, with Singaporean law enforcement stating that he is no longer in the city-state.
Legislation to regulate stablecoins is being drafted in the US House of Representatives that would place a two-year ban on stablecoins similar to TerraUSD, essentially banning the issuance of algorithmic stablecoins. Legislators are expected to vote on the bill as soon as the coming week.
Coin98 has officially launched CUSD, the decentralized stablecoin of the Coin98 ecosystem. CUSD is a fully-backed stablecoin that aims to become a cross-chain unit of account that fulfills the demand for cross-chain liquidity in DeFi. CUSD is fully backed by supported stablecoin assets sent to the CUSD Reserve smart contract. All backing assets are maintained in the contract to ensure that all users can redeem their CUSD at any time.
MicroStrategy purchased an additional 301 Bitcoins between 2 August – 19 September for $6 million, at an average price of $19,851 per BTC. Per Microstragey’s report to the SEC, the Bitcoin purchase was funded entirely with excess cash. MicroStrategy now holds almost 130,000 BTC in its reserves, having acquired them at an aggregate price of $3.98 billion, or $30,639 per BTC.
Multinational financial service firm Nasdaq is reportedly preparing to offer digital asset custody services to its institutional clients, beginning with Bitcoin and Ether. If true, this would underscore the growing belief in Crypto and its underlying technology and potential and highlights the industry’s growing demand amongst users outside of the Crypto space.
XRP prices surged by more than 60% recently, with many optimistic over the possibility of a final verdict and closure of the SEC v Ripple case in the coming days. When interviewed, Ripple CEO Brad Garlinhouse stated that the SEC has yet to have substantially proven a case against Ripple’s defense.
The Cardano blockchain will complete its much-anticipated Vasil hard fork upgrade by 27 September. Vasil aims to bring improvements to the Cardano network, making it more scalable and increasing its efficiency and cost-effectiveness for developers to build Cardano-based applications. ADA, the native token of the Cardano blockchain, had a positive rally following the announcement.
Weekly Technical Analysis: 26 September – 2 October 2022
BTC’s trend remains ambiguous, with the Crypto market leader continuing to be pressured by a strong US dollar. Keep an eye on BTC’s support and short-term resistance at $17,000 and $20,5000, respectively. Perhaps on a positive note, BTC has remained above its previous lows, which is more than can be said about many other assets that have been adversely affected by a strong US Dollar Index, such as gold or the stock market.
ETH’s downtrend following the Merge is sustained coming into this week. In the short term, the market will likely fixate on ETH’s support at the $1,200 level. If this support cannot remain intact, it is likely that ETH will fall even further to the $1,000 level. Short-term resistance is set at $1,500; however, there are few indicators that would suggest a bullish reversal is imminent.
XRP is up by +40.1% from last week. Short-term support and resistance are set at 17 baht and 21 baht, respectively. While there is a distinct possibility of a long-term uptrend, a degree of uncertainty remains regarding Ripple’s ongoing lawsuit with the US SEC; therefore, traders are advised to exercise caution when trading.
ALGO is up by +30.2% from last week, possibly driven by Algorand’s official partnership with FIFA to launch World Cup NFTs ahead of the upcoming Qatar World Cup later this year. Despite this, ALGO’s big-picture trend remains bearish. ALGO has a support and resistance set at 13 baht and 15.50 baht, respectively, this week.
Trading and Investment Considerations For The Week
The FOMC elected to raise interest rates by 0.75%. Despite being in line with market expectations, fears of increasingly hawkish monetary policy, like further interest rate hikes in the remainder of the year and a strengthening US Dollar Index, have sparked a sell-off for all assets, not just in the crypto market.
This week, FED Chair Jerome Powell will be speaking from the 27-28 September alongside a panel that will include European Central Bank President Christine Lagarde and other notable figures at this year’s ECB Forum on Central Banking. Additionally, on 29 September, US GDP figures for Q2 2022 will be released, which will come before the expiry of crypto futures contracts at the end of this month. All things considered, this week could prove to be highly volatile for the market.
Traders may consider keeping an eye on Bitcoin’s previous bottom at the $17,000 mark. If the market remains above this level, there may be an opportunity for profitable short-term speculation. Both gold prices and the US stock market have hit new lows, while Bitcoin has refrained from doing so, giving BTC a certain degree of strength for the time being.
However, if BTC’s support level at $17,000 cannot remain intact, it may be advisable to delay investing and wait until the market is more active and an upwards reversal is confirmed before entering a substantial position. No FED meetings are set for October, which could make the market more stagnant compared to September, which was relatively packed with critical economic events/announcements.
Disclaimer: Cryptocurrency and Digital token are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to own risk profile..
*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.
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