The Week in Crypto
Bitcoin faced continued FUD while NFT markets soared in complete disregard of the bear market. Stablecoins experienced a surge in supply as investors are using USD to enter volatile crypto markets. Ethereum 2.0 had an identity change and most altcoins were deep in the red.
- NFT Markets on fire
- BTC HODLers going into loss
- IMF vs. El Salvadore
- Stablecoins now considered top gainers
Top trends of the week:
Bitcoin showed reduced correlation with the falling NASDAQ this week, but like traditional markets, BTC price did drop after the Fed announcement that rate hikes and uncertainty are predicted for the near future.
NFT markets are simply exploding:
- LooksRare launched their NFT marketplace and brought in over $5 billion in NFT trading volume in the first days of being live. Sales were dominated by Asia.
- Google searches for “NFT” have exceeded searches for “Crypto”
- Paris Hilton guest starred on the Tonight Show and in a discussion about NFTs, host Jimmy Fallon revealed he had a Bored Ape NFT.
Long term Bitcoin HODLers are going into loss. As many as 17% of BTC holders went into loss as Bitcoin tested a $35k low this week. The last time this many fell into loss was in May of 2020.
The IMF urged El Salvador to stop using Bitcoin as a legal tender, citing big risks to integrity and consumer protection. The warning was largely dismissed by El Salvador President Nayib Bukele, who continued to BTMFD and posted a Simpsons meme in response.
Movers and Shakers
You know it’s bad when half of the 10 best performing cryptos for the week are stablecoins! As for the losers, crypto markets left no prisoners this week; losses were brutal.
Top 5 Gainers
Top 5 Losers
Bitcoin reverses, dips to Fed news along with fiat markets, and found support at 35k.
- BTC traded within an ascending parallel channel since Tuesday with 2 unsuccessful breakout attempts, but moving above the $37,450 horizontal resistance.
- The ascending parallel may be seen as a corrective movement and a potential breakdown could occur.
- A long term outlook on BTC’s movements this week could indicate that the bottom has been reached.
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Few altcoins were spared the bloodbath this week.
Of the top 50 cryptocurrencies by market cap, the few that showed slight gains were mostly stablecoins.
- WAVES had a breakout, increasing by 50% in just 2 days. It had been decreasing along a descending resistance line since mid-October but has bounced with 48.41% gains since then. Because it continues to face horizontal resistance at $12.50, coinciding with the earlier descending line of resistance, the trend is yet to be considered bullish.
- ADA held the $1.00 support and began to range above it, with $1.15 to $1.20 the new resistance zone.
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- FTX US raised $400 million upping its valuation to $8 billion. Investors included SoftBank, Temasek, and Paradigm. Read more.
- Russian officials came out this week in favor of regulating and taxing cryptocurrencies and bitcoin mining. Read more.
- Facebook for the second time has been thwarted from creating a digital currency. Diem was reportedly listing its assets for sale to return investor capital this week. Read more.
- Bitcoin’s annual settlement volume was reported this week to have breached Visa’s for the first time in 2021. Read more.
- The Ethereum Foundation has rebranded ETH 2.0 into a “Consensus Layer” to better define the direction of the Ethereum Network. Read more.
Spotlight on: QUAD
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We are knee deep in the bear market, so now is a great time to arm yourself with risk management tools:
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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.