Overview
- Crypto Market Update
- Market Insight: Retesting Support
- Major Crypto News
- Notable Events
- NEWBIES’ lesson of the day: The Practical Future of NFTs
Market Insight
On Tuesday we explored on-chain metrics that implied the big players aren’t selling in this market and Microstrategy purchased another $82m worth of BTC today to help support this evidence. We got some bad news today that drove the market down but news sentiment tends to be temporary. The retest of major support was inevitable for Bitcoin despite the Evergrande defaults. This is unjustly renewing fears of a bear market.
Altcoins were hit the hardest with all major L1s struggling today.
ETH - 5.85%
DOT - 8.34%
ADA - 6.11%
SOL - 5.54%
Smaller projects are fairing worse.
The latest move isn’t showing a lot of volume and raises the probability that the 48k support will hold. Today is a good accumulation day if you DCA. There is a lot of fear in the market, it’s best to take advantage of these prices.
The amount of funding going into crypto is getting too large to list. Everyday I write this newsletter another $150 – $500 million is entering the market in the form of investments. This news along with strong on chain analysis is narrating an opposing story when compared to falling prices.
Developing Narrative
Ethereum Layer two solutions are becoming a hot topic lately to include news today of Polygon acquiring Mir Protocol (below). There are a handful of layer-two solutions that I will try and cover in the coming days. If you don’t know what a layer-two is, fear not, I will include it in the NEWBIES section. Keep a close on MATIC, as I predict it will perform well with all hype surrounding this sector. To top all this, Coin Bureau, one of the most influential and trusted Crypto-Youtubers released this video on MATIC today.
Crypto Market
Bitcoin (BTC) is down 5.2% to 47.8k on the Evergrande news of a default. The Evergrande situation will be a continuous nuisance for the markets for months ahead as the situation evolves. Bitcoin continues to test the 48k - 50k support. Expect numerous tests of this major support and accumulation in the coming days.
Total Market Cap – ETH & BTC (TOTAL3) is down 4.89% and Stablecoin Dominance (USDT.D) is up 5.73%. Traders are closing positions into stablecoins as opposed to the recent trend of Bitcoin selling into altcoins such as Ethereum.
Terra (LUNA) takes a pause from its its recent strength. LUNA is down 10.57% today but is up 76% in the past 5 days.
KEEP A CLOSE EYE ON LUNA THIS MONTH
Bitcoin Fear and Greed Index 24 EXTERME FEAR
Google Trends 46 +9 (Considerable Rise)
How to use The Fear and Greed Index for investing
Follow me on Medium or subscribe on substk (FREE)
Major Crypto News
- Microstrategy has purchased another $82m in Bitcoin and currently holds 122,478 valued at $5.9 billion. $2.2 billion of the valuation is purely on gains.
- Palm NFT Studio holds a series B investment round with Microsoft as the lead investor. Microsoft is investing into NFTs, let that sink in.
- Polygon acquires ZK-rollups startup Mir Protocol for $400 million following acquisition of ZK-rollup project Hermez Network for $250 million in August. Mir will rebrand to Polygon Zero. ZK – rollups are engineered to process Ethereum transactions in a fast and efficient manner to bring down cost to users.
- A trade group from India has recommended to parliament that crypto become regulated as its own financial class.
- AWS’ latest major outage highlights the urgent need for a decentralized alternative. By Cudos
- Animoca Brands, a large crypto gaming firm as 5x in value since September from $2.9 billion to $15.9 billion. Animoca holds tokens such as REVV (REVV), The Sandbox (SAND) Tower (TOWER) and GAMEE (GMEE).
Notable Events
- RedFOX (RFOX) is auctioning metaverse lands
- Ti – Value (TV) is launching on BSC tomorrow
- Beldex (BDX) is transitioning from PoW to PoS tomorrow
NEWBIES’ Lesson of the day: Future Practical Uses for NFTs
The early days of the internet taught us that adoption of some technologies will manifest through unconventional, unusual and at times deviant channels. Some of my first unfortunate interactions with the web were to watch gory videos with middle school friends on rotten.com. Little did I understand the future of this technology and the impact it would have on my everyday life. Comparable to that era, NFTs have begun as jpeg art collectibles and in-game assets. It’s hard to understand why people will pay millions for some jpeg art and it leaves many disinterested in what they believe is another juvenile fad. But NFTs will alter our lives in many ways we can’t even fathom. In an effort to provide a glimpse of the future, I wrote some practical use cases for NFTs. Tomorrow I will bore you with the what actually constitutes an NFT, for now just think as them as a unalterable digital asset.
Bored Ape Yacht Club # 2087 sold for 769 ETH or $2.3 million at the time
NFT stories:
Imagine going to the grocery store to purchase an expensive Argentinean wine to impress some guests tonight. You scan the NFT barcode of the $50 wine bottle only to discover someplace enroute, the wine exceeded the temperature of eighty degrees for two days. You just saved yourself $50 for tart wine.
Your daughter buys an Elsa toy at the Disney store that is accompanied by a video game NFT QR code on the bottom of the toy. She arrives home, scans the QR code and changes here avatar’s skin on Roblox to match her new toy. Four weeks later she trades it with her friend for a Moana skin.
Your grandfather unfortunately passes away and left his NFT Will for the family. His NFT deeds, titles, digital assets, car keys and season tickets to the New York Yankees get automatically transferred to his desired recipient upon the scan of his NFT death certificate. No lawyers and no family disputes. The family spends the next week celebrating his life.
Below is a list of various items that will likely be adapted into NFTs in the near future.
- Scholarly Degrees
- House deeds
- Drivers License
- Software License
- Medical Licenses
- Event Tickets
- Songs
- E-Books
- Wills
- Car/House keys
What other ways can NFTs affect our lives?
WEEKLY WATCHLIST
- Terra (LUNA)
- Ethereum (ETH)
- Polygon (MATIC)
- Algorand (ALGO)
- Cardano (ADA)
Tomorrow I will cover some information about the crypto-based senate hearings from yesterday and explain why its so important to the future of crypto. I will also explain in detail what an constitutes an NFT. Stay tuned!
Interest in crypto plummets during extended drawdowns. Learn to be a contrarian in relation to investing and begin to stir up when the markets are depressed. This is our time. Buy the bottoms and take profits on the tops and don’t stop accumulating!
Thanks for reading!
No comments:
Post a Comment