Crypto Weekly: 8 – 13 November 2022
This past 31 October marked the 14th anniversary of the publishing by the mysterious Satoshi Nakamoto of the whitepaper that kickstarted the crypto revolution. Since the publication of the whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” in 2008 and the subsequent mining of the Bitcoin genesis block in January 2009, Bitcoin has morphed into a globally recognized asset, including seeing adoption as legal tender in multiple countries.
Nine years following the first Bitcoin ATM at a cafe in downtown Vancouver, Canada, there are now 38,804 crypto ATMs globally. Of this number of machines, 88% are within the United States, with Canada and Spain taking 2nd and 3rd place, with 6.6% and 0.6% of shares, respectively. Estimates report that the crypto ATM space is currently valued at $46.4 million and predict it could grow more than 10x to $472 million by 2027, with remittance and increased crypto ATM installations being potential factors for increased adoption.
MicroStrategy’s Q3 financial statements revealed that the business intelligence company saw $700,000 in impairment losses related to its Bitcoin holdings. This loss is a significant drop from the $918 million loss MicroStrategy posted last quarter, a byproduct of Bitcoin prices remaining largely stagnant over the past 3 months. Of note, Q3 marks Phong Le’s first quarter as CEO, with Le taking the position over from co-founder and noted Bitcoin bull, Michael Saylor.
Ethereum co-founder Vitalik Buterin has shared an updated Ethereum roadmap, including a new section called “The Scourge” that aims to address MEV issues, including bot exploitation, congestion, and high fees. With “The Merge” update seeing success so far, the next major Ethereum upgrade section will be “The Surge” – which seeks to improve scalability and increase Ethereum’s transaction throughput to 100,000 TPS.
Social media platform Instagram is set to launch NFT-related tools that will allow creators to mint, show, and sell NFTs. Meta says creators will have an “end-to-end toolkit” for creating, showing, then selling NFTs within the platform and has chosen the Polygon blockchain as an initial partner for this functionality. Meta has yet to commit to concrete details regarding commission/platform fees they may charge on NFT sales or any potential royalties system they may implement.
Multinational banking giant JPMorgan successfully executed its first-ever cross-border DeFi transaction on Ethereum Layer-2 network Polygon using a modified version of the Aave protocol’s smart contract code. The trade was facilitated by the Monetary Authority of Singapore and also involved Singapore’s largest bank, DBS Bank, and Tokyo-based banking firm SBI Digital Asset Holdings.
Blockchain gaming company Gala Games is urging calm following since-debunked rumors of a multibillion-dollar rug pull or hack. The initial panic saw GALA prices temporarily crashing by 25.6%. Gala Games has publicly confirmed that all GALA tokens on Ethereum and GALA-related assets on the GALA bridge were safe.
Weekly Technical Analysis: 8 – 13 November 2022
Bitcoin (BTC)
Technical indicators continue to send signals for a BTC uptrend. BTC prices will have to break through the resistance level at $25,000 to confirm an upwards reversal, which could end up taking some time. Keep a close eye on the support at $19,000. With investor capital potentially shifting towards altcoins, do not be surprised if BTC is outperformed by altcoins this week.
Ethereum (ETH)
ETH is stuck in a short-term sideways trend. If ETH can break through its $2,000 resistance, this would signal a successful upwards reversal. Prices will have to remain above the $1,350 support level for a rally. Many are choosing to play it safe and wait for ETH’s future trend to become more clear; however, those jumping in now should be ready to cut their losses if ETH’s support cannot remain intact.
Band Protocol (BAND)
BAND is up by +139.2% over the past week; however, there have been virtually no improvements to the fundamental/intrinsic value of the project that could explain such a dramatic price surge. It is likely that this rally is fueled entirely by speculation, and investors are advised to be cautious when thinking about entering a position.
GuildFi (GF)
GF is up by +42.4% from last week; however, the Thailand-originating GameFi project remains highly volatile, and traders should exercise all due caution. It is highly advised that traders keep a close eye on the support level at 6.20 baht; if support breaks, the rally is over. GF will look to challenge its 9 baht resistance level, which, if successful, could fuel an uptrend for GF for the rest of the week.
Trading and Investment Considerations For The Week
The Federal Reserve raised interest rates by 0.75% for the fourth consecutive time, which aligned with market expectations. However, rising unemployment figures, in conjunction with a FED policy statement that noted that the US central bank would be actively considering the cumulative impact of its hikes when determining future rate increases, has led many to speculate that the FED may be signaling its intentions to slow its interest rate hikes. The speculation has potentially spurred increased trading activity this week.
This week, keep an eye on the publication of October’s US CPI figures on 10 November. If the FED’s hawkish monetary policy is proving effective, expect to see the inflation rate at 8%, down from the 8.2% reported in September. If inflation rate has improved and is reported at below the 8% level, this could be enough for the FED to start implementing a less aggressive 0.5% rate increase, which would benefit the market. In contrast, if inflation rate comes out above 8%, this could force the FED to continue with its hawkish monetary policy in an effort to cool down inflation, which is still near 40-year highs.
Additionally, following the US mid-term elections on 8 November, some financial market volatility may occur. Many predict that the Democratic party will lose valuable seats in Congress due to what some have perceived as widespread economic failure by the Biden administration.
Overall, the outlook on the Crypto market is not negative, and a recovery or rally may be possible. Bitcoin prices have perhaps found a bottom, and the FED is showing signs that they may relent on their interest rate hikes soon. If these conditions prove true, we may see money flow back into the crypto market, as well as increased speculation and trading activity for altcoins that could spark a profitable rally for some projects. Traders may opt to enter positions on tokens that have a proven track record of outperforming their competitors and a more positive/stronger longer-term outlook.
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/14-years-since-the-bitcoin-white-paper-why-it-matters
https://cointelegraph.com/news/9-years-after-the-first-bitcoin-atm-there-are-now-38-804-globally
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