This week saw twitter on fire with former Coinbase CTO Balaji Srinivasan placing a $1M bet on Bitcoin's success as BTC market cap has grown a staggering 60% in 2023, hitting $28k this week. Meanwhile, Wall Street banks have lost an eye-watering $100 billion. Additionally, EOS Network Ventures has committed $20 million to DApp and game development, and JP Morgan is set to pilot dollar blockchain accounts in India, while Microsoft Edge introduces its built-in crypto wallet. Google ends the week with the anticipated release of their AI Bard!
Former Coinbase CTO Balaji Srinivasan's $1M bet on Bitcoin's performance has turned heads in the cryptocurrency world and with Bitcoin's market cap growing 60% in 2023, it's easy to see why. Meanwhile, top Wall Street banks have lost a staggering $100B, as Bitcoin claws back Fed-related losses and climbs back above $27,500. The Tron stablecoin market cap has also been making waves, crossing $40B and eyeing a potential $60B before a setback after a recent SEC case announcement. Crypto exchange GMX has even proposed deployment on Coinbase's blockchain. Finally, Tether's market cap has risen 17% YTD amidst a TradFi banking crisis.
Exciting news for blockchain fans! EOS Network Ventures commits $20M to DApp and game development on EOS. Meanwhile, Magic Eden's Ordinals Marketplace launches vowing to revolutionize Bitcoin NFTs while Aura Network's Xstaxy Mainnet has now gone live, democratizing access to NFTs, and speaking of gaming, Polygon and Immutable have teamed up to create a new zkEVM Ethereum Gaming Network to take the gaming experience to a whole new level. And last but not least, the Wormhole3 team has released its Ver0.4 alpha, catapulting it to the second largest DApp on the Steem social blockchain. Not to mention this week saw the release of Bard - google’s own AI.
Governments and regulatory bodies grappled with how to classify and tax digital assets this week. The IRS is taking steps to treat NFTs as collectibles meanwhile, Florida Governor Ron DeSantis proposed a law banning the use of CBDCs. On the other hand, Taiwan made moves establishing itself as a major player in the industry, naming its financial watchdog as the main regulatory body for cryptocurrencies. And over in Dubai, the government launched VARA, a platform designed to boost the city's as a hub for crypto. Amidst all this, Coinbase is reportedly considering launching an overseas trading platform, in response to the regulatory pressures.
India led the way on adoption this week with JP Morgan announcing a pilot program to launch dollar blockchain accounts in India's GIFT City financial center, while India is expected to hit 156 million crypto users in 2023. Meanwhile, Tata Power is experimenting with a blockchain-based solar energy trading project in Delhi. Crypto self-custody is also set to go mainstream with Microsoft Edge's built-in crypto wallet, as NVIDIA and Microsoft are teaming up to bring the industrial metaverse and AI to enterprise users through Azure Cloud. On the NFT front, we saw Polygon has partnered with Salesforce for an NFT-based loyalty program.
Did you ever wish to just write your strategy like a chat? “Buy $100 worth of BTC every day”, “Buy $500 Bitcoin if a Golden Cross is created.” With Cody, the sky’s the limit and you can bring all your trading ideas to life, just ask Cody!
Holding Bitcoin has been a profitable affair for as much as 88.5% of the days it has existed. This news comes on the heels of non-zero balance wallets reaching a total count of 44.7 million. Bitcoin inscriptions have also reached half a million, resulting in miners raking in millions. Meanwhile, Bitcoin futures have hit a yearly high of $12 billion, and Bitfinix saw $650 million in BTC flows in two large transactions. The options markets have also flipped bullish, as BTC rallies
The hourly chart tells us the same story, as price continued to trend higher, we saw repeated raiding of 1H sell-side liquidity to fuel the next trend high, and we moved higher, which had also been supported by continued rejections of the 50 EMA.
As we saw price close the monthly fair value gap, an aggressive sell-off took place, right as traders positioned for the FED rate announcement. After price raided daily sell-side liquidity, it found support at the next immediate bullish order block and recovered, testing $28,800 once again.
Moving forward, we have broken below the 50 EMA, so a continuation of the trend could be a potential scenario; alternatively, a bullish move higher into $28,800-$30,000 could still take place.
BTC encountered resistance this week just below the $30k psychological price level, with selloffs preceding the FED rate announcement followed by a recovery after.
We have now seen price continue to edge higher, albeit with signs of resistance and selling pressure entering the market, signaled by the low volatility candles as bulls and bears go head-to-head in their positioning.
The daily 50 and 200 EMAs have started to diverge, with the 50 EMA making its way up to the EQ of the weekly range, which also aligns with a bullish order block, both positioned below 1D sell-side liquidity that has been ran.
We now wait to see if price continues to edge higher to reclaim $30k or retraces into an area of support.
We saw the mean gas price for ETH has hit a one-month low, currently sitting at 29.390 GWEI. Additionally, token swaps and ETH bridges on zk protocols such as zkSync and StarkNet saw a significant increase last week, with 39,000 addresses bridging a whopping $871 million to zkSync. On top of that, ETH's current Network Value to Transaction (NVT) ratio is trading at a 19% discount to its 365-day average.
ETH also continued edging higher this week as selling pressures put a halt on aggressive bullish momentum, which could be seen by price's failure to close above the $1840 price high (the highest price since August 2022).
We are seeing slightly more bullish signals with ETH over BTC given that we have yet to raid 1D sell-side liquidity as we have on BTC, however, the story is still the same. With the 50 EMA diverging from the 200 EMA and making its way to the bullish order block just below the current price, a support zone is setting up clearly.
We are likely to see price retrace into this support level if shorts are incoming, meanwhile, if the bulls are still in control, a continued higher high in the bullish trend could be the last of the bullish trend we see.
Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.
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.
Manage all your crypto assets on the go with zero-gas swaps and a unified portfolio at your fingertips.
Disclaimer: Information contained herein should not be construed as investment advice, or investment recommendation, or an order of, or solicitation for, any transactions in financial instruments; We make no warranty or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose. Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation to buy, sell or hold a particular financial instrument; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Quadency, or vice versa. Market information is made available to you only as a service, and we do not endorse or approve it.
Copyright © Quadency Global, Ltd