Bitazza Crypto Weekly: The Future of Payment With Stablecoins -

Crypto Weekly: 6 – 12 February 2023

Twitter is developing a new payment system and is in the process of obtaining regulatory licenses across the US to become eligible for the task. The focus will be on supporting traditional payment systems, but the underlying infrastructure Twitter is building will be prepared to support digital assets in the future for both person-to-person money transfers and the issuance of debit and credit cards to elevate Twitter into becoming a super app.

According to Visa’s crypto division head at StarkWare Sessions 2023, the payment giant has plans to allow customers to convert digital assets to fiat currencies on the Visa platform, with Visa currently testing how to actually accept settlement payments from issuers in USDC starting on the Ethereum chain.

New Cardano-based stablecoin Djed from DeFi service provider Coti has deployed on the Cardano mainnet. Djed is pegged to the US dollar and backed by Cardano’s native cryptocurrency, ADA, as well as SHEN as its reserve coin. According to Coti, Djed is overcollateralized by over 400% to ensure the security of the USD peg.

Finnish fintech company Membrane Finance has launched EUROe– Europe’s first and only EU-regulated full-reserve Euro-pegged stablecoin, currently operating on the Ethereum blockchain. EUROe can be purchased on Uniswap, and there are has plans to deploy EUROe smart contracts on an increasing number of blockchains, including Solana, Polygon, an d Arbitrum.

MicroStrategy reported a loss of $197.6 million over the fourth quarter of 2022 due to the price decline of Bitcoin over that time period. MicroStrategy also noted that they sold 704 BTC for cash proceeds of $11.8 million in Q4. Overall, MicroStrategy increased its total bitcoin holdings to 132,500, currently worth $2.15 billion, with the company having invested over $4 billion since August 2020.

ETH’s circulating supply reached a new post-Merge low of 120.5 million ETH in February. It has been 140 days since The Merge, one of the biggest technical changes in the network’s history that significantly altered ETH’s tokenomics, swiching Ethereum from proof-of-work to proof-of-stake and significantly decreasing the total net issuance of ETH.

In its latest monthly report, DappRadar outlined the growth of the DeFi and NFT sectors. DeFi protocols experienced a +26% boom in Total Value Locked (TVL) in January from December, with over $74.6 billion worth of staked assets in TVL and Optimism emerging as the top DeFi performer. Meanwhile, NFTs have also enjoyed a resurgent start to the year, with trading volume reaching $946 million, marking a 38% increase month-on-month and the highest trading volume seen since June 2022.

Weekly Technical Analysis: 6 – 12 February 2023

Bitcoin (BTC)

BTC has faltered over the past week but has not lost its bullish trend yet. Keep an eye on support at $21,500. If this week continues and support remains intact, buying pressure may grow, with more traders anticipating BTC’s challenge of the $25,000 level.

Ethereum (ETH)

ETH has been moving sideways this past week without breaking short-term resistance at $1,700. However, if support at $1,400 remains intact, hope of recovery remains, with a medium-term target at the $2,000 resistance level.

The Graph (GRT)

GRT is up by +44% over the past week, having managed to break through a critical resistance level at 3.80 baht. GRT will be looking to test its medium-term target at the 5.40 baht resistance level; however, there is a strong possibility of a potential price retracement considering how quickly GRT’s price has surged.

Fuse Network (FUSE)

FUSE is up by +37.6% over the past week. Despite its positive performance, the drastic price increase means traders should exercise due caution when trading. Keep a close eye on support on the 3 baht support level; if it remains intact this week, FUSE may be able to challenge its 4.20 baht resistance level.

Trading and Investment Considerations For The Week

The outcome of the Federal Reserve meeting was in line with market expectations, with a 0.25% rate hike and a positive response from the investment market. Despite the FED chair stating that there will be no interest rate cuts this year to tackle inflation, the market as a whole is still anticipating that interest rate cuts will begin in September.

Also of note, the US Non-Farm Payroll figures released last Friday were higher than market expectations, strengthening the US dollar. A declining/stagnating Bitcoin in conjunction with a rallying USD could have a negative impact on the crypto market this week.

FED Chairman Jerome Powell is due to give another speech this Tuesday, which could outline the FED’s monetary policy moving forward, potentially leading to some market volatility. Additionally, on 9 February, Initial Jobless Claims numbers will be published; if the number of claims is declining, this could indicate an overall strengthening of the US economy, which would further fuel the USD rally, potentially negatively impacting Bitcoin prices.

This coming week, many US-based mid-cap tech companies are set to release their earning reports. While none are large enough to have a noticeable impact on the crypto market on their own, an overall negative performance of the US stock market could impact the crypto market.

Based on prior trends, February is usually a good month for Bitcoin, with only one negative Feb over the past eight years. However, it is still critical to keep an eye on macroeconomic factors, such as the release of the Consumer Price Index (CPI) report on 14 February. If figures suggest that the inflation rate is continuing to fall, this could have a beneficial impact on the crypto market.

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/brazil-passes-law-to-legalize-crypto-as-a-payment-method

https://cointelegraph.com/news/russias-sber-bank-integrates-metamask-into-its-blockchain-platform

https://cryptopotato.com/animoca-brands-unveils-2b-metaverse-fund/

https://cryptopotato.com/lines-crypto-exchange-bitfront-to-shut-down-amid-bear-market

https://finbold.com/telegram-set-to-build-crypto-exchange-in-response-to-ftx-collapse/

https://www.theblock.co/post/191352/decentralized-crypto-exchange-volumes-nearly-double-in-november-amid-ftx-debacle

https://cointelegraph.com/news/uniswap-launches-nft-marketplace-aggregator

https://www.theblock.co/post/190900/opensea-nft-creators-earned-1-billion-royalties

https://cointelegraph.com/news/opera-crypto-browser-to-enable-instant-nft-minting-through-launchpad

https://cointelegraph.com/news/avalanche-to-power-alibaba-cloud-s-infrastructure-services-in-asia

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