Crypto Weekly: 2 – 8 May 2023
Visa is preparing to launch a stablecoin payment service using public blockchain technology to support widespread adoption as part of its new cryptocurrency product roadmap. The company will also employ smart contracts to record transactions on the blockchain. Visa entered the cryptocurrency market in 2022 and currently collaborates with Circle, the creator of the USDC coin.
Mastercard is partnering with public blockchain developers such as Aptos Labs, AVA Labs, Polygon, and Solana Solution to establish a standard for cryptocurrency payments called Mastercard Crypto Credential. The MCC standard is designed to support various cryptocurrencies, and the company plans to continue working closely with regulators and industry partners to ensure compliance with local laws and regulations. As one of the global leaders in payment-processing, this initiative is expected to help facilitate the mainstream adoption of cryptocurrencies.
PayPal-owned mobile payment service Venmo is set to introduce a cryptocurrency trading service on the Venmo platform. Users will be able to send cryptocurrencies to other Venmo users, PayPal, and hardware wallets. Venmo’s fiat-to-crypto payment service will enable its users to buy, sell, and hold cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. This move is in line with the growing demand for digital assets and highlights Venmo’s commitment to providing users with diverse financial tools. The service is slated to launch in May.
A Standard Chartered report argues that the Crypto Winter has ended and states that the price of Bitcoin is expected to reach $100,000 by 2024. Supporting factors cited include stablecoin confidence issues – which has bolstered Bitcoin’s reputation as digital gold, a US banking system criss, and the upcoming Bitcoin Halving.
Additionally, the seven-day moving average of daily transactions on the Bitcoin chain reached a new all-time high of 408,000 on April 29, surpassing the previous record of 406,000 transactions.
The Hong Kong Central Bank has informed commercial banks to ease the opening of accounts related to cryptocurrencies as a result of increased demand. The Hong Kong government continues to promote the development of the digital asset sector and has implemented a regulatory framework to protect investors, including guidelines for banks to follow when dealing with digital asset clients, emphasizing the importance of applying a risk-based approach and conducting thorough customer due diligence. This move is expected to support the development of the digital asset industry in the region.
Messari reports that the total value locked (TVL) of the Solana chain in US dollar terms increased by 23.5% quarter-over-quarter, mainly driven by inflows from Liquid Staking and a 12% increase in NFT transactions from the previous quarter. The dollar value of NFT trading increased by 36%. Solana’s significant growth can be attributed to its low transaction fees, high-speed processing capabilities, and growing ecosystem. The platform has attracted various DeFi projects and NFT marketplaces, making it one of the top contenders in the rapidly expanding blockchain space.
Ripple reported the sale of more than $361 million worth of XRP tokens in the first three months of the year, up from $226.31 million in the previous quarter. Ripple’s main product is on-demand liquidity, which allows customers and users to transfer money across borders without relying on banks, though not directly related to the XRP token.
Weekly Technical Analysis: 2 – 8 May 2023
BTC continues to move sideways, with the support level at $25,200 holding strong. However, the inability to create new highs indicates weakening price momentum, which could lead to a break below this crucial support level. If the price can maintain its current level, the short-term resistance target is at $30,000.
ETH has tested its significant support level at $1,800, with a tendency to maintain this support level for a potential upward trend. If the price falls below this level, the market may trend toward cutting losses. The short-term resistance level is at $2,000, and the current price trend remains directionless.
Alpha Venture DAO (ALPHA)
ALPHA has increased by +24.2% over the past week, but the price remains highly volatile, and the upward trend is not confirmed. In the short term, the support level to watch is at 4 THB. If the price falls below this level, the opportunity for an upward trend will be lost. However, if the price recovers, the short-term resistance level will be at 5.4 THB.
MKR has increased by +1.7% over the past week, but its trend continues to be sideways. The support level is at the previous low of 22,800 THB, and the resistance level is at 25,600 THB. To fully turn into an upward trend, the price may need to break above this resistance level. However, if it falls below the support level, the trend may turn downwards.
Trading and Investment Considerations For The Week
This week, a key highlight is the Federal Open Market Committee (FOMC) meeting on Wednesday, May 3. The market is anticipating a 0.25% interest rate hike, which could result in a sideways upward movement for the market, as investors have factored this in for some time already. However, if the meeting results in no further rate increase, the market may experience a strong upward adjustment.
The recently announced US GDP for the first quarter was significantly lower than expected, at 1.1% compared to the forecasted 2% figure. This has led the market to believe that the Federal Reserve may be concerned about the economic slowdown and unresolved financial institution issues plaguing banks in the US, potentially leading to a decision not to increase interest rates in this round.
Nevertheless, it is essential to monitor the post-meeting statement and minutes, which may indicate the monetary policy trends for the remainder of the year. Additionally, on Friday, May 5, the US Non-Farm Payroll data for April will be released, which is a key US economic indicator. The market expects a figure of 180,000 jobs, down from the previous month’s 236,000. The unemployment rate is anticipated to be at 3.6%, up from the previous month’s 3.5%.
If these two crucial economic indicators come in lower than expected, combined with the possibility that the Federal Reserve may eventually adjust interest rate policy downwards, the market may respond positively.
This week, financial results announcements from crypto-related companies, such as MicroStrategy on Monday and Coinbase and Block on Thursday, could also potentially impact the cryptocurrency market.
-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.
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