The Week in Crypto
Crypto markets fell sharply for the second week in a row amid increased world tensions, out of control inflation, and a hostile Twitter takeover.
At a Glance
- Crypto and legacy markets fell sharply
- Elon Musk launched a Twitter takeover
- Fortnite developers raised $2 billion to build the Metaverse
- ApeCoin to be featured in a movie
Top Market Trends:
- Crypto markets sank along with major world indices amid heavy turmoil in global markets due to record inflation and a shifting world order.
- Elon Musk launched a hostile takeover of Twitter shortly after buying a majority in shares and being passed for a board seat, causing DOGE and TWTR to rise and TSLA to drop.
- NFT markets saw Fidelity launch a Metaverse ETF and Meta announced it would be taking a 47.5% cut from NFT sales in its Metaverse.
- US Treasury Secretary Janet Yellin gave a landmark speech remarking on Bitcoin’s double-spend solution while promoting a digital dollar.
How it started How its going pic.twitter.com/LaCPlaamXT— 𝗠.𝗕𝗧𝗖 🦡 (@m__btc) April 12, 2022
During the week, Bitcoin faced strong selling pressure on inflation news with a short burst on the heels of DOGE and news of Elon Musk’s Twitter bid. BTC ended the week down 6.84%.
- Bitcoin (BTC) broke down through the 50- and 100-day moving averages and is currently retesting the $40,000 price level.
- BTC technical analysts are debating whether Bitcoin price is in a super cycle, with some suggesting it's currently in a consolidation phase leading to a major upside.
- Bitcoin holdings on exchanges have dwindled significantly based on the 7-day average of all exchanges.
On only 3 other occasions have we ever seen Bitcoin withdrawn from exchanges at this rate. pic.twitter.com/oQZcIf1WYM— Will Clemente (@WClementeIII) April 13, 2022
Altcoins markets experienced a crypto-sell off as several privacy coins posted gains despite a sharp overall downtrend. The amount of Ethereum on exchanges is at its lowest level since 2018 as investors are choosing to self-custody their ETH or put it into DeFi protocols to earn yield.
- All top 25 DeFi coins posted losses for the week.
- Celsius (CEL) limited its user base in the US by restricting the adding of new assets and earning rewards to only accredited investors. CEL price reacted by dropping -27.15%.
- Monero (XMR) price rose by 4.62%, possibly in light of the recent tightening of sanctions.
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- Jack Dorsey’s 1st ever tweet NFT, which sold last year for $2.9 million in a COVID relief fundraiser, was relisted in an auction for $48 million but got a bid of $280. Read more.
- Fortnite creator Epic Games raised $2 billion from KIRKBI and Sony to build out the Metaverse. Read more.
- Uniswap Labs launched a venture wing to invest in Web3 startups with “aligned values”, and was sued in a class action lawsuit alleging fraudulent DEX activity. Read more.
- ETH’s Merge to a Proof-of-Stake (PoS) chain was successfully tested via a “shadow fork.” The official Merge is slated for Q3. Read more.
Focus on: Apecoin
ApeCoin (APE) is a governance and utility token that empowers the APE Ecosystem created by the same people behind Yuga Labs and the Bored Ape Yacht Club’s massive avatar NFT project. This week Coinbase announced that it would be making a film featuring ApeCoin. In response, the token surged over 10%.
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Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.