Week 6 | 2/7/22 - 2/12/22
By Matthew BrienenNews Flash
Monday 2/7/22: Crypto asset manager Valkyrie will have an exchange-traded fund (ETF) with exposure to Bitcoin mining firms available for trading on the Nasdaq Stock Market starting Tuesday. According to a Jan. 26 filing with the Securities and Exchange Commission, the investment vehicle will not offer direct exposure to Bitcoin (BTC), but at least 80% of its net assets will be through securities of companies that “derive at least 50% of their revenue or profits” from BTC mining or providing the hardware or software related to mining.
Tuesday 2/8/22: The Federal Deposit Insurance Corporation (FDIC) has said that crypto—and specifically the risks involved in the crypto industry—will be a priority area of focus for 2022. “It is imperative that the federal banking agencies carefully consider the risks posed by these products and determine the extent to which banking organizations can safely engage in crypto-asset-related activities,” Chairman Gruenberg stated. FDIC’s recognition of crypto-related risks follows a similar line of thought prevalent across many other regulatory and law enforcement agencies in the United States.
Wednesday 2/9/22: Terra has announced a sponsorship deal with Major League Baseball’s Washington Nationals using $40 million from Terra community members and investors. "We are excited to partner with Terra to name our most exclusive club and explore bringing powerful new fan experiences to Nationals Park, including the use of UST cryptocurrency to make purchases,” Mark D. Lerner, managing principal owner of the Washington Nationals stated. Additionally, TerraUSD (UST), the DAO’s algorithmic stablecoin launched in September 2020, will be accepted for purchases throughout the ballpark beginning next season.
Thursday 2/10/22: Gucci is doubling down on its commitment to the metaverse. The designer clothing brand announced on Wednesday that it’s bought an undisclosed amount of virtual land on the decentralized blockchain game The Sandbox. Gucci will create themed experiences on The Sandbox inspired by its “Gucci Vault” platform, which lists items like Gucci-themed NFTs and vintage bags.
Friday 2/11/22: The European Union has been talking about central bank digital currencies for some time now. Yesterday, the EU finance chief said that early next year a bill for a digital euro would be proposed. Commissioner McGuinness was quoted saying that the EU's "goal is to table legislation in early 2023," with "a targeted legislative consultation in the coming weeks."
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Bitcoin Technical Recap
Bitcoin showed incredible strength as price rallied through Wednesday, peaking out at $45,850. As we stated throughout the week, a healthy pullback was required to see this uptrend continue. Concerns of political turmoil with Russia created the catalyst to pull prices lower for risk on assets. BTC is now attempting to lock in a successful higher low in the $41,000 region. A dip into the $40,000 region would also be reasonable.
BTC/USD Daily Chart
Additionally, we discussed Heiken Ashi candles: these candles show where trading volume was heading during the session regardless of true price. We are now producing a strong bullish weekly candle. After 3 months of relentless bearish volume, it's become apparent that bulls have taken control in the short term. Further retracement is afoot.
BTC/USD Weekly Chart
Finally, examining BTC dominance, the macro bear flag is still intact, suggesting that a massive rotation into altcoins is still en route. In the short term, using a Fibonacci range, we can see that dominance has broken above minor resistance of 42.5% and has now tested 43.5%. The 70.2% fib lies at 45%, also in confluence with the upper bound of the of the trendline.
Bitcoin Dominance 2-Day Chart
Ethereum Technical Recap
ETH also enjoyed a generous rally extending $1,000 from the late January lows. Price tapped the 38.2% fib at $3,200 and found a strong ceiling of resistance. We are now just a few percentage points from testing the breakout zone at $2.7-$2.8k, confirming a higher low. All eyes on BTC for the next move.
ETH/USD Daily 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 2/7/22: Brian Decker and Matthew Brienen share some key insights into one of the team's favorite exchanges: Nexo. Matthew discusses the launch of the Crypto Market Integrity Coalition, Nasdaq listing Valkyrie's ETF for Bitcoin mining firms, and AssangeDAO raising $38 million to free Wikileaks founder Julian Assange. Brian completes his evaluation of Wilder World and also discusses Sin City, a fresh metaverse that has piqued his interest.
Tuesday 2/8/22: Analyst Matt Brienen highlights some interesting news such including the FDIC making assessing crypto risks a priority in 2022, US officials seizing $3.6 billion in Bitcoin from the 2016 Bitfinex hack, and Russia's second richest man's sights set on digital ruble. The team also delved into a detailed technical breakdown of the cryptocurrency market and how to identify an Altcoin season. Decker came in hot discussing OpeanSea's newest competitor LooksRare, a new marketplace that revenue shares with its users.
Wednesday 2/9/22: The mid-week show was kicked off with news including Terra's five-year, $40 million contract with the Washington Nationals, Russia's plans to regulate crypto as if it were a currency, and BlackRock's plans to offer crypto trading. Brian completes his LooksRare overview. To conclude the stream, the team examines the technicals as well as some coins that are currently lagging in the market.
Thursday 2/10/22: Dan Habib, EVP of MBS Hiwghway, gave a compelling presentation on price action, decoupling optimism, and market makers. Matt discussed important crypto market news such as the CFTC wanting a larger role in crypto regulation, Gucci purchasing Land in Ethereum game the Sandbox to create metaverse experiences, and Crypto.com acquiring naming rights to the F1 Miami Grand Prix.
Friday 2/11/22: The week was closed out with Matthew Brienen addressing looming concerns about Russia amassing enough troops to invade Ukraine, the European Union considering digital Euro legislation by next year, and Drake placing a $1.3 million Super Bowl bet in Bitcoin. He also provides a technical analysis of the market as well as a look at the Altcoin market in 2018. Matthew concludes the stream by sharing tips for becoming a seasoned investor.