Week 21 | 5/23/22 - 5/28/22
By Matthew BrienenNews Flash
Monday 5.23.22: Video game retailer GameStop Corp ($GME) today launched its non-custodial, browser based Ethereumwallet similar to MetaMask. The wallet leverages Loopring's ZK-rollup technology, an Ethereum layer-2 scaling protocol for cheaper and faster transactions.
Tuesday 5.24.22: Coinbase, the largest U.S. cryptocurrency exchange, has become the first crypto-focused company to be included in the Fortune 500. The exchange pulled in $7.8 billion in revenue for the 2021 fiscal year, ranking 437th on the list; when ranked by revenue growth, Coinbase, at nearly 514%, trailed only Moderna (almost 2,200%) among top 500 firms.
Wednesday 5.25.22: Terra’s “proposal 1623,” outlining plans to revive the collapsed Terra ecosystem, has been approved by the community. On May 16, Do Kwon, the creator of the Terra ecosystem, proposed revival plans which included the creation of a new blockchain and issuing new LUNA tokens. The distribution model for the new LUNA tokens includes 30% for the community pool, 35% for LUNA holders before the crash of the ecosystem, and 10% for pre-crash Anchor-staked UST (aUST) holders, 10% for post-crash LUNA holders, and 15% for post-crash UST holders.
Thursday 5.26.22: ARK Invest submitted on May 13 yet another application for its physical Bitcoin ETF, the ARK 21Shares Bitcoin ETF, according to a filing with the U.S. Securities and Exchange Commission. The application includes a proposed rule change from the Chicago Board Options Exchange (CBOE) BZX Exchange. According to Bloomberg ETF analyst Henry Jim, the latest deadline for approval or disapproval of the ARK 21Shares Bitcoin ETF is January 24, 2023.
Friday 5.27.22: The governance vote on Terra’s proposal 1747 to burn 1.388 billion UST stablecoins has passed. This will reduce UST’s supply by roughly 11% of its total supply of 11.28 billion tokens, according to data from CoinMarketCap.
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Bitcoin Technical Recap
Bitcoin has yet to produce any meaningful directional moves over the last 2 weeks. As of recent, we see BTC is back at the bottom of the range, hanging out towards the summer 2021 lows. We know that price breached this level heavily at the beginning of the month dipping down towards $25,000 before closing its weekly candle above $30,000.
BTC/USD 3-Day Chart
We also are seeing some bear market bottoming behavior examining Bitcoin Dominance (BTC.D) which represents the percentage of market share that belong to BTC. We know that the bear flag we were watching for the last several months has been violated, and now we look to local resistance in the 47-49% region to potentially pause out and allow altcoins to recover.
BTC.D 3-Day Chart
Equities & Indices
For many years, crypto participants have awaited "the great decoupling" from equities and they've been closely correlated for as long as BTC has been in existence. Last week we saw stocks and indices show healthy follow through and aggressive bullish weekly closes. Crypto in contrast, sat flat or suffered from further downside moves.
(Weekly Charts Left to Right) S&P 500 | Dow Jones | Nasdaq
These are the strongest weekly closes we have seen in indices since late Feb of this year following the initial knee jerk down move from the ongoing Russia-Ukraine conflict. We discussed the possible ABC Elliot wave corrections that could be playing out. Taking out the B wave would confirm this. The B wave levels reside as follows: DJI @ 35.4k, SPX @ 4630 & NAS100 @ 15.2k. Finally, looking at DXY, which measures the strength of the US Dollar, is showing some downside momentum coming into play after testing just above 20-year highs. Next area of interest we may see a bounce would be in the 100-point region. The last time we saw DXY sell off heavily, cryptos responded very bullishly.
DXY Weekly 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 5.23.22: Brian Decker shares his speculations about Do Kwon and Terra as well as a quick breakdown of the Ethereum 2.0 success roadmap. Dan Habib discusses how to find economic news, the Fed's magical word, and a technical analysis of stocks and cryptocurrencies.
Tuesday 5.24.22: Matthew Brienen discusses Ripple CEO Brad Garlinghouse's vision of blockchain and regulation & South Korean police request exchanges of Luna Foundation Guard-related funds. Dan Habib discusses mortgage rates, Bitcoin's significant downtrend, and when the markets will turn around. He also talks about the derivatives markets and shares his Apple stock call from his time at Morgan Stanley.
Wednesday 5.25.22: Brian offers anoverview of Helium (HNT) and the Proof of Coverage algorithm. Analyst Matt Brienen provides a technical analysis of several markets and believes we are nearing the bottom.
Thursday 5.26.22: Dan Habib analyzes JPMorgan seeing significant upside to Bitcoin replacing real estate as preferred alternative asset and the S&P 500 hitting new 52-week lows alongside some technical analysis of Bitcoin on multiple timeframes and shares his thought process during leverage trading. Matthew deconstructs ISO 20022 for financial standard initiatives and the ecosystem.
Friday 5.27.22: Decker breaks down the 2022 state of crypto report and provides some takeaways for the growth of Web3. Matthew also provides a technical analysis of equities and different "looks" of Bitcoin.
