The Crypto Week in Summary
Innovations in the Web3 space continue to roll in despite multiple negative and prolonged macro events. The remittance market is moving into stablecoins via MoneyGram and Stellar, Kanye changed his mind about NFTs, and Binance Labs just added a cool $500m to the tech innovation space.
At a Glance...
- Bitcoin miners faced with selling off or shutting off
- Kanye reversed stance on NFTs
- MoneyGram & Stellar launched stablecoin remittances
- Terra troubles lingered with LUNC price oracle exploit
- Crypto markets rebounded but struggled to break resistance
Top Market Trends:
- Bitcoin miners are reacting to a continued bearish market by selling off their bitcoin holdings, and in some cases, powering off their mining rigs.
- Kanye West reversed his earlier dismissal of NFTs and filed 17 NFT trademark applications for his YEEZUS brand.
- MoneyGram partnered with Stellar to offer stablecoin-based cross border payments and is in talks with El Salvador over wallet deal.
- OpenSea senior employee, Nathanial Chastain, was formally charged with insider trading for buying 45 NFTs on the platform prior to their release as featured NFTs.
Movers and Shakers
Bitcoin (BTC) remained uncoupled from equities markets as the Nasdaq rebounded by 7.95% for the week and Bitcoin rose 1.6% in spite a massive campaigns and events moving against it, including:
- US and global politicians zeroed in on trimming back PoW energy use.
- The SEC is airing TV ads warning of the dangers of speculating with crypto.
- A never-before-seen combination of macro events is now upon us, leading Wall Street pundits to talk recession and JPMorgan’s Jaime Dimon to warn of an “economic hurricane”.
Yet, Bitcoin continues to run the largest and most secure computing network in the world, enabling people everywhere to transact freely with a money that is decentrally governed by math instead of centrally by politicians. Its presence and appeal grows stronger every day.
- On the 2-hour BTC chart, all the indicators are definitely bearish with Momentum below 0 and MACD turning negative in the last few hours. Bitcoin crossed below the 10MA earlier today and is retesting a short-term support above $29.6k. If a breakdown is confirmed, BTC could fall towards the $28.7k long-term support rapidly.
- The daily BTC chart seems to be less bearish than the few last weeks. Despite 9 bearish weekly candles closing in a row leading to this long0term support level between $28k and $29k, this weekly candle starts to potentially draw an Inverted hammer, a sign of a potential reversal trend. However, a look at the short-term chart suggests a more bearish scenario could occur.
Altcoins on the Move
Altcoins staged a rebound this week following BTC, but lost traction and then some. Ethereum (ETH) dipped below the $1800 support line as Friday’s $1B options expiry loomed. Most alts were down over 7 days with a few exceptions, including Synthetix (SNX) and Waves (WAVES) (which posted phenomenal gains).
- Tron’s TVL jumped 43% recently and is now the 3rd largest smart contract network, as its JustLend lending protocol grew 65% in May.
- Terra’s Mirror Protocol saw its $LUNC price oracle exploited, draining 4 of Mirror’s synthetic asset pools. $1.1 billion TerraClassicUSD (USTC) tokens were burned since May 27th (about 10% of its supply) to try and re-peg the fledgling stablecoin.
- Optimism (OP) had a wild week after being down by 70% hours after its botched airdrop. It’s now back above $1.30.
- Solana’s (SOL) Beta Mainnet halted block production for over 6 hours due to a durable nonce transaction bug, sending SOL down 12%.
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- South Korea has jumped into the Metaverse with a $177 million investment commitment despite a history of strict crypto regulations.
- The US FED published a report estimating it would take 5 years to roll out a national CBDC and promised not to cut banks out of the picture.
- Binance Labs created a $500 million fund geared toward incubation projects and early and late stage startups in Web3.
- Portugal’s Parliament rejected 2 bills to tax cryptocurrencies while Paraguay’s crypto bill to regulate trading and mining moved closed to approval.
Spotlight on: Zcash (ZEC)
Zcash (ZEC) is crypto’s 2nd biggest privacy coin by market cap (after XMR) and uses zero-knowledge cryptography to enable fully anonymous, decentralized transactions.
ZEC rolled out its biggest upgrade on May 31st. The release removed ZEC’s reliance on complex setup ceremonies, enabling, for the first time, a system of trustless, private digital cash payments on mobile phones.
Today history was made! Zcash NU5 is live! No more trusted setup! One less thing $zec "haters" have to hate on. And its just one of the few updates 🙂— Andre 🛡 (@SousarioAndre) May 31, 2022
Welcome to the future of cryptography! This is what #Bitcoin was supposed to be all along. Satoshi Nakamoto would be proud!🙂
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We Looked Into: The turbulent month of May - in review
Last month, volatility reigned as a major event rocked #crypto markets and equities faltered. #BTC was the first coin to stabilize as #altcoins bled.— Quadency (@quadency) June 2, 2022
Let’s take a look at May’s important highlights
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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.