Stablecoin Growth Reflects a Potentially Recovering Crypto Market

Stablecoin Growth Reflects a Potentially Recovering Crypto Market

Jamie Coutts, an analyst from Bloomberg Intelligence, has revealed that blockchain usage has never decreased, even in a bear market, with an average quarterly growth rate of 29% since 2019. If this moderate growth rate of 20% per quarter is maintained, it could reach 100 million daily users by 2028.

The Block reports that the supply of Stablecoin continues to rise after the growth in Bitcoin price, with USDT experiencing the highest increase. Glassnode also indicates that Bitcoin, Ethereum, and Stablecoin have seen a positive inflow of funds.

CoinShares reports a weekly crypto market inflow of $326 million as of October 27, the highest since July 2022, 15 months ago, marking the fifth consecutive week of inflows. This suggests growing investor confidence in the establishment of a Bitcoin ETF.

QuickNode reveals an increase in Stablecoin transactions across various blockchain networks, growing by 41% between the first and third quarters, with USDT leading the Stablecoin market in terms of market value, number of addresses, and transaction volume.

Tether reports that reserves for issuing USDT consist of approximately 86% cash and cash equivalents, as certified by auditing firm BDO, the highest level ever. Tether has consistently reduced reliance on secured loans to increase cash holdings instead.

Michael Saylor, founder of MicroStrategy, states that the company purchased an additional 155 BTC with $5.3 million in October, bringing the total holdings to 158,400 BTC, and now realizes a profit from the Bitcoin holdings with an average cost of $32,000.

Michael Saylor predicts that the value of Bitcoin could increase tenfold by 2024, supported by the Halving event and the reduced selling pressure from miners, along with the arrival of a Bitcoin ETF which will attract unprecedented institutional investor demand.

Visa has completed a collaboration with the Hong Kong central banks, HSBC, and Hang Seng Bank, to use the digital Hong Kong dollar or e-HKD with bank deposits in a tokenized form. This will enable real-time interbank transfers and operate 24/7, while traditional financial systems halt during holidays.

The central bank of Singapore is planning to foster cooperation related to digital assets with some countries in Europe and Japan. MAS is trying to pilot projects concerning debt instruments, foreign exchange transactions, and asset management.

Worldcoin reveals that the World App downloads globally have surpassed 4 million, with a monthly user base of 1 million, doubling compared to six months ago, and daily user activity at 100,000.

 

Weekly Technical Analysis:  7 – 13 November 2023

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Bitcoin (BTC)

BTC is moving without a clear direction as there are no new positive developments, and macroeconomic factors are not significantly affecting the price. It may continue to move sideways for a while or could adjust down to touch the level of $31,500. It is expected that the price can still increase.

Ethereum (ETH)

ETH is moving sideways, following BTC for the second week. However, since its returns are still significantly behind BTC, an upward adjustment is still expected. In the short term, it may test the $1,700 level, and if it passes $2,000, the trend could continue to rise.

 

PancakeSwap (CAKE)

CAKE has increased by 79.8% over the past week. The price can surge and continue to make new highs. The first support is at 72.50 THB; if the price holds, it may test the resistance at 95 THB.

SushiSwap (SUSHI)

SUSHI has increased by 53.6% over the past week. The price has risen sharply and is beginning to contract.

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Trading and Investment Considerations For The Week

The Federal Reserve’s policy meeting concluded as expected, maintaining interest rates. However, the Fed Chair’s statement signaled another potential rate hike, while the Non-Farm Payroll announcement and unemployment rates suggest an economic slowdown.

The dollar and the yield on 10-year Treasury bonds fell after the meeting’s outcome, which did not significantly boost Bitcoin or other assets. On November 8 and 9, the Fed Chair will make another statement on monetary policy and the economy before next week’s inflation figures are released.

Bitcoin prices have stabilized, leading to increased trading activity in the market, especially among Layer 1 and 2 blockchains, DeFi, and Liquid Staking. However, many coins have risen so rapidly to overbought conditions that it might be wise to wait for a price correction before buying.

The overall market is showing a clear recovery, with expectations that Bitcoin could rebound to the $42,000 level within this year before a possible correction. This period could be an opportunity for speculative gains, particularly in coins with solid fundamentals that have not yet experienced significant buying pressure.

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