Crypto Market Update and Trading Digest by trader gabi
report completed at 1045 HST
Major News
· Inflation rises to 6.2% in October; core consumer prices up 4.6%. Inflation is at a 30 year high. Below is a chart from the U.S. Department of Labor of rising consumer prices from Oct 2020 to Oct 2021
· FTX CEO Spending big on marketing for better name recognition. The FTX name is beginning to show up Sports Arena, MLB games and in commercials with their newest spokesman Tom Brady. FTX recently got a 25 billion Valuation in a Series-B. The FTX token is currently trading at 62.73$ with a market cap of 8.7 billion. There’s a little cookie crumb in that paragraph.
· Twitter will be creating a team to further explore into the crypto space, particularly decentralized applications. Twitter has already enabled Bitcoin tipping on its platform and will soon have NFT verification. Jack Dorsey, the CEO, is a big proponent of crypto in general.
· Terra passes proposal to 88.7M LUNA worth 4.5B and mint 4 – 5 million UST stablecoin. The initial burn of 520k has already taken place. The newly minted UST will be used for its new insurance protocol called OZONE.
· Spanish banks will be required to report 3-Year digital currency plans to the central bank Banco De España. Its an effort by the central bank to research the effects of digitalization on financial services. I doubt that’s all its really for.
Market Update
· Bitcoin hits all-time highs at 69K as it climbs closer to the 70k psychological marker. Many analysts are stating that BTC will have to test 70k various times before it can potentially break through. A retest of the 63.5k support is still not out of the question here.
· The overall market saw an inflow of +1.5% raising the market cap to 3.09 trillion dollars.
· BTC dominance is up .72% as the attention turns back to BTC and its awaited test of 70K
· Total 3 is down .50% to further emphasize money flow going from alts into BTC.
· Chainlink (LINK) the leading blockchain oracle, continues its up-trend and is up 10% today.
· Kadena (KDA) is up 45% after it slumped yesterday. I did a small review of Kadena on my report 2 days which is a recommended read. This is an up-and-coming Layer-1 that has everything needed to become the next big player. I always recommend you DYOR.
Insight
Our lives are becoming more and more expensive very year. Your dollar has lost 6.2% of its value in less than one year. Sit down and really think about that comment. A currency that is supposed to be one of the most stable has lost 6% of its value. This is not some effect of the market, this is because of all the money printing that has been occurring in the past year and half. An estimated 40% of all dollars have been printed form 2020-2021. It really seemed like everyone except the Federal Reserve (money printers) knew the outcome. Below is a chart of money supply.
The angles are starting to become very impressive lately. And they wonder why the people are turning to crypto currencies.
Terra (LUNA)
Today I want to talk about Terra Luna for those of you who never heard about it or know how it functions. I will not go too deep into detail but its hopefully inspiration to DYOR and see the power of this cryptocurrency during these inflationary times.
LUNA is the native token of Terra network and is used for governance and staking. The other key component of LUNA, the most unique and powerful, that it is used as collateralization for price-stability for the UST, a decentralized dollar stablecoin. To break this down simple, they burn LUNA token to mint UST tokens. This creates constant deflationary pressure on LUNA.
UST is starting to become one of the most widely used decentralized stablecoins and its just getting started. If you noticed in the news section, they plan to burn 88.7M LUNA just for an insurance protocol. There is 484M LUNA in circulation. I’ll let you do the math and use your imagination for how this can affect price in a basic supply and demand structure. Below is a chart of the rate of UST issuance in the past year.
Notable Events
· Miami Crypto Experience will take place on Nov 10 – 12. Big announcements can occur in these events.
· Polker (PKR) an online poker crypto, will have its testnet game launch tomorrow.
· Torum (XTM) will list on Kucoin tomorrow. This is not a very import event but I want to get Torum onto people’s radar. There is low-key opportunity in here, in what can be the future Facebook of crypto.
· Airswap (AST) a peer-to-peer Etheruem Dex is launching tomorrow.
NOOB Lesson of the day
What is a stablecoin?
A stablecoin is a cryptocurrency that is pegged to the price of an asset. And you ask yourself why in the world would anyone need that? The simple answer is because you can’t use physical money or assets in the digital world in an effective manner. If you want to trade your Dogecoin into that impressive sounding LUNA coin that an awesome newsletter put on your radar, then you would have to trade your Doge for a dollar stablecoin first and go to a platform that sells LUNA. You could then trade your stablecoin for LUNA in a USDT/LUNA trading pair.
Stablecoins have various duties in the cryptoverse and are some of the most widely used cryptocurrencies. The two most widely used are USDC and USDT which are stablecoins pegged to the price of the dollar. Just about every crypto exchange will host USDT pairs to trade. Robin Hood is not really a crypto exchange btw. They can be used for staking, trading, providing liquidity and as a risk-off asset. There are a lot more to stablecoins than I can fit into short newsletter and I recommend you get to know the basics of stablecoins. If you begin to use crypto, stablecoins will become an integral part of the experience.
Tomorrow I will talk about the difference between centralized and decentralized stablecoins and why the market is beginning to slowly trending towards using decentralized stablecoin. Whisper… “its because of the government.”
On that note, have a great day/night fam!
Follow me on Twitter @ TraderGabi for more up to the minute info
-Gabi
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