Crypto Weekly: 30 October – 6 November 2022
A report from KPMG China and Aspen Digital suggests that Hong Kong and Singapore’s wealthy elite appear to be looking at digital assets with great interest. In a recent survey, 58% of family offices and high-net-worth-individuals revealed they are already investing in digital assets, with another 34% planning to do so. Despite signs of growing interest, portfolio allocations remain relatively small, with most allocating less than 5% of their portfolio to digital assets — mainly in Bitcoin, Ether, and stablecoins.
Fidelity Digital Assets released its annual study on institutional investment in digital assets recently, which surveyed 1,052 institutional investors in Asia, Europe, and the United States, finding that institutional interest remains high despite the ongoing Crypto winter. Despite this, many investors remain concerned that the widespread usage of digital assets is still lagging.
Major credit card company Visa may be planning to explore digital wallet services based on two recent trademark applications. According to the applications, Visa may potentially be planning to be involved in software that can be used “to view, access, store, monitor, manage, trade, send, receive, transmit, and exchange” digital assets, as well as exploring a potential foray into the Metaverse.
Binance has announced the launch of its new data feed network, Binance Oracle, that facilitates the connection of blockchain-based smart contracts to real-world data, beginning with BNB Chain. According to Binance, over ten BNB Chain projects have already integrated with the Binance Oracle network.
Following a 98% approval on a governance proposal last week, leading DEX PancakeSwap will officially be launching on the newly launched Aptos blockchain. PancakeSwap’s swaps, farms, pools, and initial farm offerings features are planned to be rolled out by the end of November.
Near Foundation announced the funding of a $40 million protection program fund to protect USN investors in the case of the in-house stablecoin’s collapse. Following USN’s recent undercollateralization, the Near Foundation has recommended winding down USN to prevent a situation similar to the LUNA-UST collapse and has funded the protection program to help investors cash out.
Google will be launching an in-house Blockchain Node Engine that will be based on Google Cloud. As a node-hosting service, BNE enables Web3 projects to relay transactions, deploy smart contracts, and read or write blockchain data directly on Google Cloud. Ethereum will be the first blockchain supported by Google’s BNE.
Dogecoin prices continue to soar following Elon Musk’s $44 billion takeover of Twitter. Fellow dog-themed meme token Shiba Inu (SHIB) has seemingly benefited from the Musk-fueled DOGE rally. Furthermore, an article from Bloomberg suggests that Musk’s takeover of Twitter could open the door to blockchain usage by Twitter to reduce the presence of bots on the platform, NFT implementation, and policies that will make Twitter more decentralized as part of Musk’s ambitions to turn Twitter into a “Super App”.
Weekly Technical Analysis: 30 October – 6 November 2022
Bitcoin (BTC)
BTC is seeing greater trading activity as we approach the holiday season, and BTC price is approaching its 100-day moving average. If BTC can cross the $22,000 level, it may have the momentum needed to challenge the $25,000 resistance level. Support is set at the $19,000 level, with BTC’s trend potentially to be heavily affected by the FOMC meeting later this week.
Ethereum (ETH)
ETH is beginning to move upward out of its sideways trend and has outperformed the market, with ETH prices managing to surpass its 100-day moving average and now testing the 200-day moving average. This week’s support and resistance are set at $1,350 and $2,000, respectively.
Dogecoin (DOGE)
DOGE is up by +96.9% from last week, thanks to increased trading activity and speculation following Musk’s Twitter takeover. However, it is unclear if this news actually represents a positive shift in DOGE’s fundamental value or if this is just market hype. Considering the astronomical price surge, traders are advised to exercise caution when trading. Support and resistance are set at 3.80 baht and 5.90 baht, respectively.
Klaytn (KLAY)
KLAY is up by +47% from last week and has managed to maintain last week’s positive momentum. Traders looking to enter a KLAY position could consider waiting for prices to contract to around the 9 baht level before purchasing. Short-term resistance is set at KLAY’s previous highs of 13 baht.
Trading and Investment Considerations For The Week
Last week revealed that US Q3 GDP grew more than expected, despite disappointing earnings from US tech stocks. However, these results seem to have had no significant impact on the crypto market, with Musk’s Twitter acquisition seemingly fuelling greater market activity in comparison.
Besides DOGE and SHIB seeing increased trading activity and speculation fueled by the Twitter takeover, there also appears to be strong buying pressure for GALA and Layer 1 blockchain tokens, perhaps predictably led by Ethereum. Despite this, a market recovery/uptrend is unconfirmed, and high caution is advised for all trades.
This week, keep an eye on the upcoming FOMC meeting on 2 November. The market is likely waiting to react to whether the FED will be continuing its 0.75% interest rate increase. If the FED implements a 0.75% interest rate hike per previous sessions this year, the market will likely not see any significant change. However, a 0.50% interest rate increase would likely have a significantly positive impact on the market. In contrast, a rate increase at the 1% mark could impact markets negatively.
The weekend rally may also fuel a sell-off at the start of this week, with investors looking to lock in their profits to avoid potential volatility coming out of the midweek FOMC meeting.
10 November will also see the release of US CPI figures for the previous month (Oct 2022) and will be the last data report regarding US inflation before the FED convenes for its final meetings of the year in December.
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/hk-and-singapore-s-mega-rich-are-eyeing-crypto-investments-kpmg
https://www.theblock.co/post/179764/pancakeswap-approves-dex-launch-on-aptos-via-governance-vote
https://cointelegraph.com/news/google-launches-blockchain-node-engine-for-web-3-0-developers
https://www.coindesk.com/business/2022/10/26/doge-soars-as-musk-twitter-deal-nears-completion/
https://www.theblock.co/post/181129/elon-musk-could-bring-more-crypto-into-twitter-bloomberg
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