Bitazza Crypto Weekly: Stablecoins: The New Frontier in Business Payment Solutions -

Crypto Weekly 28 August – 3 September 2023

Both Mastercard and Visa have recently severed ties with Binance, leading to the suspension of fiat-to-crypto transactions for Binance Card. The rationale of these prominent technology-driven payment giants to disengage from Binance has not been officially commented on by either Mastercard or Visa.

Shopify’s adoption of Solana Pay as a payment channel marks a significant expansion in the cryptocurrency payment options available to its extensive network of merchants. The integration begins with support for USDC payments, with plans to incorporate other cryptocurrencies like SOL in the future. This strategic move aligns with Shopify’s positioning as a leading player in the US e-commerce market. Shopify accounts for 10% of total U.S. e-commerce and $444 billion worth of global economic activity according to the company’s website.

Circle Internet Financial, responsible for managing USDC, has unveiled plans to launch stablecoins on new blockchains, including Polygon PoS, Base, Polkadot, NEAR, Optimism, and Cosmos. Previously has supported stablecoins on Ethereum, Avalanche, Arbitrum, Stellar, and Tron. These plans demonstrate Circle’s commitment to widening its reach within the growing blockchain ecosystem.

A report by the Bank for International Settlements (BIS) acknowledges the potential of Bitcoin as an alternative financial system, especially for emerging economies. However, concerns arise regarding excessive regulatory control, which could lead to increased usage of unregulated alternatives/platforms, thereby introducing higher risks.

Tether’s financial report reveals assets totaling $86.1 billion and total liabilities of $82.8 billion, backed by a reserve exceeding 100% of value. Additionally, Tether has introduced stablecoins pegged to assets beyond the US dollar, including gold, the euro, the Mexican peso, and the Chinese yuan. This strategy aims to enhance stability and global adoption of stablecoins and crypto.

ARK Invest and 21Shares join forces to apply for Ethereum ETFs. With the anticipation of SEC approval for the creation of ETFs heating up, ARK Invest and 21Shares are partnering to launch two funds: “ARK 21Shares Active Ethereum Futures ETF” (ARKZ) and “ARK 21Shares Active Bitcoin Ethereum Strategy ETF” (ARKY). This collaboration reflects the growing interest in crypto-based ETFs amid increasing regulatory clarity.

Nansen’s on-chain data analysis platform reveals a consistent downward adjustment in the floor prices of blue-chip NFT tokens. Over the past 30 days, the average decline stands at 25%, indicating ongoing market turbulence even for highly followed NFT projects like BAYC.

Santiment’s data highlights a continuous accumulation of ETH by the top 10 holders, while in contrast, the majority of smaller wallets have been liquidating. Collectively, the major holders control approximately 35% of the total ETH supply, providing insights into the distribution dynamics within the Ethereum ecosystem.

Weekly Technical Analysis: 28 August – 3 September 2023

Bitcoin (BTC)

BTC is in a directionless trend after the previous week’s sell-off. While it managed to maintain a position above the crucial support level of $25,200, uncertainty prevails regarding its trajectory. The confirmation of an upward trend will be contingent on overcoming the resistance at $28,000. This week’s projection suggests a continuation of sideways movement.

Ethereum (ETH)

ETH has been trending sideways with a downward bias, struggling to recover after last week’s sell-off. The current support has been lifted to the $1,600 level; however, ETH will have to successfully break through resistance at $1,850 to confirm an uptrend once more. This week ETH may be likely to continue on its directionless trajectory.

dYdX (DYDX)

Dydx made a 12% recovery in the past week, showing signs of attempting to rebound after testing new lows. A trading strategy should focus on keeping a close eye on the support level at 72 THB, if DYDX can succesfully challenge its first resistance at the 79 THB level, it could pave the way for an upward trend in the bigger picture.

Velo (VELO)

Velo posted a +10.3% increase over the past week, but its recovery remains uncertain until it can break through the resistance at 0.84 THB. VELO must avoid breaking below the support at 0.70 THB. For greater trader confidence, VELO may need to set new highs without hitting new lows before entering a significant position.

Trading and Investment Considerations For The Week

With the annual Jackson Hole Symposium officially over, the recent statements from the Federal Reserve Chair did not deviate significantly from prior indications or market expectations. This led to minimal fluctuations in the price of Bitcoin, which remained relatively stable.

On Wednesday, August 30th, the second-quarter Gross Domestic Product (GDP) figures for the United States will be announced. Current market expectations foresee a growth of 2.4%, surpassing the previous quarter’s projection of 2% growth. Additionally, the Non-Farm Payroll figures scheduled for Friday, September 1st are anticipated to show a decline in positions to 170,000 from the previous month’s figure of 187,000.

The Unemployment Rate for August is also set to be released, with market forecasts aligning at 3.5%, matching the previous month’s figure. These economic indicators hold significance for potential changes in the value of the US dollar, which could potentially impact Bitcoin’s price, despite crypto market fluctuations being largely uncorrelated by macroeconomic factors recently.

JPMorgan recently issued its analysis of Bitcoin’s price, highlighting the opinion that sell-offs appear to be at their end phase based on the Open Interest figures on Bitcoin futures contracts on the Chicago Mercantile Exchange. Lower OI may suggest that most of the selling pressure has been left in the near term, leading to JPMorgan’s report stating that Bitcoin currently potentially has limited downside.

However, there are currently no new positive catalysts that could significantly drive up Bitcoin’s price. As a result, it is projected that the cryptocurrency market will remain relatively quiet and trade sideways until other influential factors come into play.

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/us-sec-deems-spot-bitcoin-etfs-filings-as-inadequate-report
https://cointelegraph.com/news/fidelity-renews-push-for-spot-wise-origin-btc-trust-making-it-7th-applicant-this-year
https://www.theblock.co/post/236904/microstrategy-bitcoin-12333-btc-for-347-million
https://cointelegraph.com/news/blackrock-bitcoin-etf-grayscale-sec
https://cointelegraph.com/news/bitcoin-crypto-investments-largest-weekly-inflow-since-july-2022
https://cointelegraph.com/news/ethereum-layer-2-optimism-transactions-surged-following-bedrock-upgrade-nansen
https://cointelegraph.com/news/hong-kong-establishes-task-force-web3-development

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