Week 19 | 5/9/22 - 5/12/22
By Matthew BrienenNews Flash
Monday 5.9.22: Meta announced today that it will begin rolling out support for NFTs on the popular photo-sharing app Instagram this week. And support on Facebook is right around the corner too. NFT images displayed on Instagram will have a unique “shimmer” effect that visually sets them apart from standard shared images and photos, plus they will be attributed to both the collector and the original creator. There are no fees tied to the NFT feature.
Tuesday 5.10.22: US Treasury Secretary Janet Yellen doubled down on her stance that stablecoins pose a threat to financial stability Tuesday during annual testimony before the Senate Banking Committee. The Treasury will issue a “comprehensive report” on cryptocurrencies and stablecoins “shortly,” Yellen said, as part of a request from the President’s Working Group on Financial Markets (PWG). She also stressed that Congress should be working on stablecoin legislation too, saying that it is “highly appropriate” this gets done by the end of 2022.
Wednesday 5.11.22: An Africa-focused crypto startup, Mara, has raised USD 23 million in funding for building a so-called pan-African cryptocurrency exchange, as per the press release. Participating in the startup’s capital raise were Coinbase Ventures, Alameda Research, Distributed Global, TQ Ventures, DIGITAL, Nexo, Huobi Ventures, Day One Ventures, and Infinite Capital.
Thursday 5.12.22: Ark Invest, the investment house led by Cathie Wood, bought a total of 546,579 shares of Coinbase (COIN) on Wednesday, worth roughly $30 million, according to the firm’s daily trade information newsletter. Ark Invest, the investment house led by Cathie Wood, bought a total of 546,579 shares of Coinbase on Wednesday, worth roughly $30 million, according to the firm’s daily trade information newsletter.
Friday 5.13.22: Tether CTO Paolo Ardoino said that the stablecoin provider had cut the amount of commercial paper backing its stablecoin by half. "In the last six months, [Tether has] reduced 50% the size of the commercial papers. Everything that was reduced from the commercial paper was rolled into U.S. Treasuries," he said. "In the next few weeks, we will have the new attestation that will show that these commercial papers are being further reduced."
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Bitcoin Technical Recap
BTC took a large step below the crucial $29,000-$30,000 region that acted as an ironclad floor of support in Jan and the summer months in 2021. Many leveraged traders placed their stop losses just below these lows in hopes of making a quick profit in a retracement towards the $34,000-$36,000 region. Market makers took advantage of this and drove price as deep as $25.3k, setting a new low. Since then, bulls are attempting to reclaim $30k as support.
BTC/USD 2-Day Chart
Now you're probably asking yourself "Why did my altcoins get hit so much harder during this crash?". Examining the Bitcoin dominance chart (BTC.D), which measures the percentage of market share allocated to Bitcoin, we saw an enormous 8.5% surge in dominance over 3 days. Naturally, BTC saw a snappier recovery as it siphoned market volume from altcoins.
Bitcoin Dominance 2-Day Chart
Ethereum Technical Recap
We saw different behavior in ETH than we saw in BTC when it came to the 2021 summer lows. Price came as deep as $1,700 before seeing some recovery to the upside, holding the June 22 low as support for the time being. The markets still need to digest this most recent capitulation event, but most short positions were closed out, which means the majority of the downside pain may have completed.
ETH/USD 2-Day Chart
Project Breakdowns & Daily Update Recaps
Didn't catch all the daily update streams? We've got you covered with highlights & links to the full episodes. Monday 5.9.22: Brian Decker examines the crypto market's decline, and Terra (LUNA) prices suffer as the UST stablecoin deviates from its $1 peg. Matthew provides a technical market analysis as well as a generational buying opportunity with Bitcoin at these potential prices. Finally, the team responds to some serious questions about strategy and worst-case scenarios.
Tuesday 5.10.22: Matthew provides a technical analysis of Bitcoin and the LUNA bearish volume. Brian delves into macro headwinds and the challenges of investing in today's environment as well as an overview of Venus protocol and the ability toborrow on demand.
Wednesday 5.11.22: The team discusses the launch of Pan-African crypto exchange Mara, Do Kwon's plan to save UST & a brief look at the markets.
Thursday 5.12.22: Dan Habib analyzes ransomware involving Bitcoin, a higher-than-expected CPI, and a macro-overview of the markets. Dan also examines the technicals of equities and Bitcoin, as well as why you should hedge your Bitcoin positions.
