Bitazza Crypto Weekly: U.S. Government is Set to Sell Seized Bitcoin from Silk Road

Crypto Weekly: 3 – 9 April 2023

The US government plans to sell over 41,000 BTC seized as part of the case against infamous online black market Silk Road and its creator Ross Ulbricht. So far, US officials have liquidated 9,861 BTC, valued at over $215 million, leaving approximately 41,491 BTC to be sold in four additional batches this year, according to official court documents.

MicroStrategy has increased its Bitcoin holdings by 6,455 BTC with an investment of $150 million, at an average price of $23,238 per coin. This brings MicroStrategy’s total Bitcoin holdings to 138,955 BTC, allowing the company to repay a $205 million loan with Silvergate Bank.

In March 2023, more than 3,600 Bitcoin ATMs were shut down worldwide, marking the highest monthly decrease in machines. The total number of installed Bitcoin ATMs has been declining since late 2022, with a current count of 33,727 machines globally.

Kyoto News reports that the upcoming G7 summit will push for stricter regulations on digital currencies, focusing on transparency, consumer protection, and risk management. The summit will take place in Japan this May.

dYdX plans to migrate from Ethereum to Cosmos by the end of September, citing congestion issues during periods of high transaction volume. The platform will also offer spot trading and margin lending services for crypto trading.

The market capitalization of USDC has been declining following news of reserve fund issues. $3.3 billion remains trapped in Silicon Valley Bank accounts, with the market cap of USDC having dropped by over $10 billion, leaving approximately $32.5 billion as of the time of writing.

The market value of USDC has been decreasing due to news of reserve fund issues. The $3.3 billion held in Silicon Valley Bank has decreased by over $10 billion in the past two weeks, with a current market value of around $32.5 billion.

Sky Mavis, the company behind the popular blockchain game Axie Infinity, has revealed that four gaming studios have been selected to create and launch games on the Ronin Network from a pool of over 250 studios. Additionally, Sky Mavis announced that the Ronin chain will transition to a delegated proof-of-stake (DPoS) consensus model.

Huobi Global has announced a strategic partnership with Gala Games to jointly develop a Web3 metaverse ecosystem, focusing on promoting the use of layer 1 blockchain technology developed by Gala.

Ledger, a hardware wallet provider, has raised an additional €100 million in a Series C funding round, valuing the company at €1.3 billion. The capital will be used to expand the company’s distribution network, increase production, and develop new products.

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Weekly Technical Analysis: 3 – 6 April 2023

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Bitcoin (BTC)

BTC has continued to move without a clear direction for the second consecutive week, lacking new positive factors to support a rally. However, economic figures continue to act as a support for BTC’s price, with a potential trend toward testing the support level at $25,200. The market may enter buying mode once it passes the $30,000 level.

Ethereum (ETH)

ETH has continued to move sideways, following BTC’s short-term trend. The market may trade between the support and resistance levels of $1,650 and $2,000, respectively, as ETH still lacks new long-term growth factors or news likely to affect current prices. If the price remains directionless, the market may delay investing until there is a clear direction.

Coin 98 (C98)

C98 has seen a +21.2% increase in price over the past week, but its main trend is still downward. Caution is advised when investing in the short term, and close attention should be paid to the support level at 8.50 baht. If support remains intact, there is a potential for a recovery, with a short-term resistance level set at the 11 baht level.

Stellar (XLM)

XLM has seen a +16.1% increase in price over the past week, with a potential trend shift toward an upward direction in the long term. The short-term support level to watch is at 3.4 baht, and if it falls below this level, the market may delay investing. The short-term profit target is at 4.1 baht, with a potential trend toward a further upward adjustment.

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Trading and Investment Considerations For The Week

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Last week’s announcement of lower-than-expected GDP numbers and lower-than-expected inflation rates in the US fourth quarter of 2019 had a positive impact on the market, causing the price of Bitcoin to rise to $29,000, but it has yet to surpass the $30,000 level.

This week’s key highlight will be on Friday, April 7, with the release of the Non-Farm Payroll report, a significant economic indicator that measures employment in the US outside of the agricultural sector. The market was expecting 238,000 positions to be added, down from the previous month’s 311,000 positions, and an unemployment rate of 3.7%, the same as the last non-farm payroll announcement.

Both of these numbers are believed to have an impact on the direction of the US dollar, with lower-than-expected Non-Farm Payroll numbers or higher-than-expected unemployment rates causing the dollar to weaken and increasing the chances of the Federal Reserve delaying interest rate hikes.

The Bitcoin Dominance Index has not yet been able to reach a new high above 49 points, and there is a possibility of it moving sideways or decreasing during this period, which would have a positive impact on altcoins and could result in an overall altcoin rally. In the past, most altcoins have generated lower returns than Bitcoin.

A popular strategy is accumulating altcoins with strong fundamentals and appealing blockchain 2.0 narratives, such as ARB and OP, as well as larger market cap coins that have performed well in the short term, such as XRP and XLM.

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.

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