Bitazza Crypto Weekly: Metaverse and NFTs Still Showing Signs of Positive Reception -

Crypto Weekly: 29 August – 4 September2022

A new study from leading market research and forecast provider Juniper Research anticipates that the global number of NFT transactions will rise from 24 million in 2022 to 40 million by 2027. The report analyzed the trajectory of the NFT market over the next five years and highlights how NFTs linked to Metaverse use cases are forecasted to see the fastest growth. Notable global brands such as Gucci and Adidas have already been adopting Metaverse-related NFTs for branded digital wearables in the emerging digital universe.

American sportswear giant Nike has reportedly generated over $185 million from the sales of its NFTs, eclipsing its competitors that are also exploring the NFT sector such as Adidas. Nike’s first foray into the Metaverse was its line of digital sneakers, introduced in April earlier this year, dubbed CryptoKicks.

The Beijing municipal government announced its two-year (2022-2024) Metaverse innovation and development plan following Shanghai’s example, with the latter’s five-year development plan prominently featuring the Metaverse. Beijing’s plan will demand that various districts build technological infrastructure at a city level and promote its use in various fields, including education and tourism. The development program would see the integration of technical means such as 3D visualization and GIS (Geographic Information System) to build a visual urban space digital platform and appropriately advance the layout of digital native intelligent infrastructure. The plan also calls for districts and municipalities to offer financial and human resource support to build a virtual reality.

The US Securities and Exchange Commission has once again delayed its decision on VanEck’s latest bid to create a spot Bitcoin exchange-traded fund (ETF) until 11 October. According to the SEC, the regulators have found it appropriate to designate a longer period within which to take action on VanEck’s application so that it has sufficient time to consider the proposed rule change and any potential issues raised.

Gary Gensler, current Chair of the US SEC, wrote an opinion piece published in The Wall Street Journal titled “The SEC Treats Crypto Like the Rest of the Capital Markets | Securities laws that protect investors continue to apply even when new technologies come along”.

Samsung Securities and six other leading South Korean securities companies are reportedly in the process of obtaining licenses from South Korean financial authorities with plans to open a virtual asset exchange in the first half of next year. Major South Korean financial institutions are also allegedly interested in the crypto space and are looking to explore applying for a license.

Finally, some Crypto investors had concerns over the since-denied rumors that Mt. Gox, the former largest Bitcoin exchange that was forced to declare bankruptcy in 2014, was set to release 140,000 BTC to its creditors on 28 August, when BTC was trading under $1,000. Regardless, 140,000 BTC is relatively small when compared to actual BTC daily trade volume; therefore, any fear around an Mt. Gox-spurred Bitcoin selloff is largely unwarranted.

Weekly Technical Analysis: 29 August – 4 September 2022

Bitcoin (BTC)

BTC fell below the $20,700 support level and has entered a downwards reversal in the short run, with the next major support level at the $18,900 mark and may retest its lower low at $17,500 if its support cannot remain intact. Indicators still haven’t confirmed a downwards reversal; hence investors are advised to wait until prices stabilize with an initial resistance level at the $22,500 mark.

Ethereum (ETH)

ETH is in a short-term downtrend. If the major support level at $1,200 cannot remain intact, ETH will likely go down below the $1,000 mark once again. However, if the support level remains intact, ETH might see a rally with a target at the $2000 resistance level.

Stargate Finance (STG)

STG is up by +16.5% over the past week. STG is still in an upwards trend in the short run and must remain above the 22 THB mark to sustain its upward momentum with its next target at its previous higher high at the 42 THB mark. Investors are advised to time their trades and buy when prices dip.

Terra Classic (LUNC)

LUNC is up by +42.7% from the past week. It had a breakout from its sideways trend, with a support level at 0.0042 THB and a resistance level at its previous higher high at 0.0052 THB. Investors are advised to focus on short-term speculative trading and cut losses if the support level cannot remain intact.

Trading and Investment Considerations For The Week

Jerome Powell, Chair of the FED, spoke at the FED’s annual Jackson Hole Economic Symposium, where he emphasized that the FED will be sustaining its current efforts to combat inflation. This prompted a sell-off in many markets, from traditional equities to crypto markets, whilst strengthening the Dollar Index once more.

With Powell signaling that the FED will be continuing to enact its aggressive monetary policy to combat inflation, there is little to no support for a Bitcoin price recovery. Therefore, a safer approach is to ensure that Bitcoin will not be creating lower lows before entering a position. Regardless, current market conditions mean that now is likely not the best time to make large investments.

One key event to keep an eye on this week is the release of US Nonfarm payroll figures by the Labor Department scheduled for this Friday, 2 September. Declining nonfarm payroll figures could suggest that the US economy has room to grow without the risk of a recession, even if the FED were to enact an increasingly tight monetary policy, which could negatively affect the market.

Prior to the next FOMC meeting at the end of September, the market may be relatively stagnant with periods of volatility due to the lack of good news that could support a rally.

If the FOMC meeting later in September sees interest rates increasing by 0.75%, the market is likely to see little effect. However, if the FED decides to raise interest rates by 1% or more, this will have a negative effect on the market. In contrast, a 0.50% rate hike would likely prove beneficial.

Disclaimer: Cryptocurrency is highly risky; investors may lose all investment money. Investors should study and verify information carefully and make investments according to their 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.

Sources:

https://cointelegraph.com/news/metaverse-is-a-key-factor-in-long-term-nft-success-says-new-research

https://watcher.guru/news/nike-makes-185-million-via-nft-sales-leaves-adidas-gucci-behind

https://cointelegraph.com/news/beijing-announces-two-year-metaverse-innovation-and-development-plan

https://www.theblock.co/post/165872/sec-delays-decision-on-vanecks-latest-bitcoin-etf-application

https://www.wsj.com/articles/the-sec-treats-crypto-like-the-rest-of-the-capital-markets-disclosure-compliance-security-investment-mutual-fund-protections-blockfi-bankruptcy-bitcoin-11660937246?fbclid=IwAR088lz2i_ERvrBBVn3Ozd9qiuudG0MGbkPCePymbPncARc1oKQjX61S4q0

https://cointelegraph.com/news/south-korean-financial-majors-want-to-create-virtual-assets-exchange-in-2023-report

https://cointelegraph.com/news/mt-gox-rumors-panic-bitcoin-twitter-as-btc-price-returns-below-20k

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