Crypto Weekly: 29 May – 4 June 2023
The government of Beijing has released a whitepaper titled “Web3 Innovation and Development White Paper (2023)” with the aim of promoting innovation and development in the Web3 industry. The document was issued by the management committee of the Zhongguancun Science Park, also known as the Silicon Valley of China. The whitepaper argues that Web3 technology is an inevitable trend for the future development of the Internet industry and endeavors to position Beijing at the forefront as a global innovation hub for the digital economy.
Hong Kong is preparing to announce permission for retail investors to buy and sell cryptocurrencies starting from June 1st. Additionally, they are also planning to announce regulations regarding the licensing of digital asset platform operators on the same day.
Analysts from ARK Invest have suggested that the United States is at risk of losing its position as the digital asset industry leader, with the US ceding its dominance to the United Arab Emirates, South Korea, Australia, and Switzerland. One metric of declining US crypto dominance is how cryptocurrency trading volume in the United States has decreased by over 75% in the past two months.
JPMorgan predicts that the price of Bitcoin has a chance to adjust upwards, reaching the level of $45,000 within the next 12 months or generating a return of 25%. This prediction is based on factors such as the occurrence of Bitcoin Halving in the coming year, as well as the possibility of Bitcoin following the price of gold, which recently touched the $2,000 level.
According to Coingecko, the prices of virtual land in major Metaverse platforms have seen significant declines. Otherdeeds, a Web3 project by Otherside, initially offered the highest-priced land at 1.09 ETH but has experienced a -78.2% decrease in price. Similarly, The Sandbox and Decentraland have experienced declines of -89.76% and -87.88%, respectively.
The supply of Ethereum on exchanges has reached a historical low, declining by -14.85%. This trend breaks previous records dating back to 2016 and marks a decrease from the peak seen in 2021, which was around 25-26%. The decline can be attributed to investors staking their ETH to earn returns rather than holding it on exchanges.
CoinGecko has revealed data showing that the market share of USDT has reached a new high at 65.89%, increasing from 47.04% a year ago. On the other hand, the market share of USDC has decreased from 34.88% to 23.05%, while Binance USD has decreased its market share from 11.68% to 4.18%. DAI currently holds a market share of 3.66%.
Circle has introduced Euro Coin (EUROC), its Euro stablecoin on the Avalanche blockchain, as part of its multi-chain strategy. EUROC is 100% backed by Euro reserves and allegedly complies with the regulations of the United States financial institutions.
The Block reports that BNB Chain has reached a record high of 4.8 million transactions on Monday, May 22nd, within a one-year period. This surge in transactions is attributed to the creation and trading of NFTs, as well as the network’s support for the Ethereum Virtual Machine (EVM).
The Solana Foundation has revealed its utilization of ChatGPT’s plugin feature to allow AI access to Solana’s blockchain operations. This enables AI to engage in activities such as NFT trading, token transfers, transaction verification, and the search for NFT collections.
Weekly Technical Analysis: 29 May – 4 June 2023
Bitcoin (BTC)
BTC has recovered and touched the 975,000 Baht level following news of successful negotiations to raise the US debt ceiling. However, it remains to be seen if the rally will continue. The immediate support level is at 900,000 Baht, while the first resistance level to overcome is 1,000,000 Baht. If it surpasses this level, it could indicate a sustained upward trend
Ethereum (ETH)
ETH is following the price of Bitcoin and is about to test its resistance level at 68,000 Baht. However, there may be a consolidation in the short term, and it is critical to watch out if prices fall through the support level at 61,000 Baht, as this could jeopardize hopes of an ETH recovery. The market may use a strategy of buying on price dips and taking short-term profits.
Velo (VELO)
VELO has made a +42.3% recovery and gained strength after reaching a new low. However, it is crucial that VELO does not to fall below the 0.10 Baht mark, as it would halt the rally’s momentum. The resistance level is at 0.14 Baht, and until this level is surpassed, the upward trend may not be fully realized.
Alpha Venture DAO (ALPHA)
ALPHA is up by +17.3% in the past week, showing signs of a gradual recovery. Pay attention to its support level at 3.60 Baht. If ALPHA consolidates without breaking below this support level, the market may consider it a potentially profitable buying opportunity. The resistance level is at 4.50 Baht, and the market may take profits when possible, as the outlook of a long-term recovery remains unclear.
Trading and Investment Considerations For The Week
Despite the FOMC minutes revealing that the Federal Reserve opines that the likelihood of interest rate hikes for the remainder of the year has diminished, the Dollar Index has strengthened due to continued concerns regarding the expansion of the US debt ceiling. This has led to a flow of funds from risky assets, including Bitcoin, into US government bonds. As a result, the price of Bitcoin has remained stable and directionless.
However, recent political developments in the United States have successfully negotiated the debt ceiling issue, redirecting funds back into other assets, including Bitcoin. Nevertheless, it is important to monitor the Dollar Index to see if it continues its downward trend.
The key highlight of this week will be the announcement of the Non-Farm Payroll on Friday, June 2nd. The market expects a decrease in job positions to 180,000 from the previous month’s figure of 253,000, and the unemployment rate is anticipated to increase to 3.5% from 3.4% in May. If the numbers align with market expectations, it could positively impact the price of Bitcoin by reducing the pressure on the Federal Reserve to raise interest rates.
However, there is also a possibility of economic figures outperforming expectations. The recent announcement of the US GDP growth rate for the second quarter came in higher than expected at over 2%, which was better than the market’s forecast of 1.1%. If this trend continues, it could negatively affect the price of Bitcoin.
Overall, the cryptocurrency market still lacks significant new positive catalysts. While there is a short-term profit-taking trend in AI-related tokens, the focus in the current period may still be on accumulating large-cap coins for long-term investments.
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://www.theblock.co/post/232404/beijing-web3-white-paper
- https://www.bloomberg.com/news/articles/2023-05-23/hong-kong-to-step-up-push-for-crypto-hub-in-contrast-with-clampdowns-in-asia?sref=9y4yH4P8&fbclid=IwAR1pQBem5B8wukpdQOPgF7QfACoBaHsUxOdBfd2PORg1eoGZs4jBfK0g4aA&leadSource=uverify
- https://cointelegraph.com/news/us-losing-the-crypto-race-regulation-uae-ark-invest
- https://www.theblock.co/post/232334/bitcoin-price-45k-jpmorgan-gold
- https://cointelegraph.com/news/top-metaverse-property-investments-suffer-massive-losses-report
- https://www.coindesk.com/markets/2023/05/26/ether-balance-on-exchanges-nears-all-time-low/?utm_content=editorial&utm_campaign=coindesk_main&utm_source=twitter&utm_term=organic&utm_medium=social
- https://cointelegraph.com/news/usdt-market-share-jumps-amid-economic-uncertainty-usdc-shrinks
- https://cointelegraph.com/news/circle-euro-based-stablecoin-on-avalanche-blockchain
- https://www.theblock.co/post/231827/bnb-chain-transaction-count?fbclid=IwAR3OwwH5CZ-WQ7LJdwPcvlGwWaGpQUTJ8epUcab9Pxw9QpYhIdhorZ0UMSM
- https://cointelegraph.com/news/solana-integrates-ai-into-blockchain-raises-grants-fund-to-10m
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