Crypto Weekly: 3 – 9 October 2022
FED Chair Jerome Powell has urged caution regarding DeFi, highlighting that careful regulation will be required despite the DeFi sector currently having no significant impact on the broader economy. While Powell expressed his tentative support for financial innovations in the Crypto space, such as Smart Contracts, he remains fearful of the prospect of crypto being used for money laundering.
Christine Lagarde, President of the European Central Bank, expressed her concerns regarding the growth of the crypto sector, stating that the rise of cryptocurrencies could affect the functioning of central banks and disrupt established financial institutions. Lagarde also made it clear that this could be an opportunity for the traditional financial sector to improve itself.
BlackRock, the world’s largest asset management firm, has continued to increase its presence in the digital asset space by launching a new blockchain ETF specifically for its European clients. BlackRock had added the iShares Blockchain Technology UCITS ETF to its product suite, giving European clients similar exposure to blockchain-related companies such as exchanges and Bitcoin mining companies, similar to the ETF launched in the US earlier this year.
Leading NFT marketplace OpenSea has launched support for leading Layer-2 blockchain Optimism, enabling the integration of popular collections such as Apetimism, Bored Town, MotorHeadz, and OptiChads within the platform. With this integration with Optimism, OpenSea now supports up to six blockchains.
Warner Music Group has announced its partnership with OpenSea to create more Web3 opportunities for artists. The partnership will focus on bringing artists under the WMG roster a platform to build and extend their fanbase into the Web3 community. Additionally, WMG artists, which include notable names like Ed Sheeran and Dua Lipa, will get early access to OpenSea’s new drops product, improved discoverability, and personalized storytelling on customized landing pages.
Circle Internet Financial, the issuer of the world’s second-largest satblecoin, USDC, is expanding USDC to five additional blockchains and has announced its new cross-chain transfer protocol. According to the official statement, USDC will begin circulating on Arbitrum One, NEAR, Optimism, and Polkadot chains by the end of this year, with plans to enter the Cosmos ecosystem sometime in early 2023. By increasing multi-chain support for USDC, Circle aims to open the door for institutions, exchanges, developers, and more to innovate and have easier access to a trusted and stable digital dollar.
Uniswap Labs is reportedly in the early stages of putting together a new round of funding that aims to raise $100 million to $200 million with the goal of expanding Uniswap’s DeFi operations, including adding additional NFT features to Uniswap.
Animoca Brands co-founder Yat Siu thinks that GameFi has the biggest opportunity for growth in Asia, as gamers there are more likely to adopt the Play-to-Earn model as a way to make a living compared to gamers in the West who are primarily concerned with playing games for fun.
Metamask has partnered with NFT Cobo to develop an enterprise-level wallet that will create a one-stop platform for large corporations dealing with digital assets. Additionally, Metamask has launched the beta version of its Portfolio feature, which allows users to manage their NFTs and other tokens across multiple chains and on multiple accounts on one portfolio.
Meta has announced that as of 29 September, Facebook and Instagram US-based users can now connect their wallets to the platform, with support for NFTs on Ethereum, Flow, and Polygon. Additional support for NFTs on Solana is expected in the future.
Weekly Technical Analysis: 3 – 9 October 2022
BTC’s short-term trend is beginning to look sideways upwards, with short-term support set at the $18,500 mark. Keep a close eye on this support; if it cannot remain intact, BTC must remain above the critical support level at $17,5000 to avoid reverting to a downtrend. Resistance is initially set at the $20,500 mark, and traders are advised to exercise great caution and discipline while trading during this time.
ETH has reverted to a short-term sideways down trend with a critical support level at $1,200. If ETH can rally and break through initial resistance at $1,360, it may have sufficient momentum to test another critical resistance level at the $1,500 level.
Terra Classic (LUNC)
LUNC is up by +63.7% from last week, potentially helped by the announcement that Binance supports the Terra Classic tax burn proposal. However, the long-term fundamentals of Terra Classic remain highly uncertain, and traders are advised to exercise extreme caution when trading LUNC and be prepared to potentially cut losses if prices break below the 0.009 support level.
LUNA is up by +13.9% from last week; however, there has been no clear development or critical improvements in the fundamentals of LUNA; therefore, this rally is potentially just short-term speculation fueled by LUNC’s performance over the past weeks. Exercise caution and discipline while trading and keep a close watch on the support and resistance levels at 70 baht and 120 baht, respectively.
Trading and Investment Considerations For The Week
Jerome Powell’s speeches last week didn’t have any significant impact on the crypto market. In contrast, the stock market and gold prices seemed to undergo a correction following the FED Chair’s comments, with the three top US stock indexes dropping to new lows this year. Fortunately, Bitcoin prices remain steady above 2022’s low of $17,500.
On Wednesday, 5 October, the US non-farm payroll figures will be released, which could significantly impact the US dollar and, in turn, Bitcoin prices. If employment rate and payroll figures are low, this could force the FED from enacting harsher interest rate hikes; however, if figures are high, this could give the FED the confidence they need to continue its aggressive interest rate increases.
This week President of the ECB, Christine Lagarde, is set to make an official statement. If Lagarde’s comments hint at upcoming monetary policies that could strengthen the Euro, or if other notable central banks like the Bank of England or the Bank of Japan can do likewise, it may weaken the US dollar, potentially having a positive impact on the crypto market.
Because the market outlook remains highly uncertain, traders should focus on a trading strategy that prioritizes short-term moves. If Bitcoin prices fall below the previous 2022 low, market conditions could worsen notably, and investors should consider slowing down investments until there is greater clarity.
-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.
You might also like
More from Crypto Weekly
U.S. SEC Postpones Decision on Pioneering Bitcoin-Ethereum ETFs The U.S. Securities and Exchange Commission (SEC) has announced delays in making decisions …
Bitazza Crypto Weekly: Both Asian and American Investment Firms Maintain a Strong Focus on Crypto Investments
Grayscale Files for Ethereum Futures Trust ETF: Grayscale has applied to the U.S. Securities and Exchange Commission (SEC) to establish …
Crypto Weekly 19 - 24 September 2023 Franklin Templeton has filed for a Bitcoin ETF with the U.S. SEC, with Coinbase …