Here is a Market Recap for today Wednesday, June 29, 2022

Psycho’s Market Recap - Wednesday, June 29, 2022

US stocks finished Wednesday’s extraordinarily choppy session modestly lower as the market digests new economic data. Today, first-quarter US GDP was revised down to show a 1.6% annualized contraction, as personal consumption came in weaker than previously reported. This follows a report earlier this week that showed consumer confidence in the US fell to the lowest level in nine years. On the other hand, Bitcoin (BTC) continues to fight to stay above the critical $20k level amid extreme volatility in crypto markets.

The Conference Board’s latest report showed the consumer confidence index for June fell to 98.7 from 103.2 in May and below expectations of 100. The report's expectations index, which is based on consumers' short-term outlook for income growth, the job market, and overall business conditions, fell to 66.4, its lowest reading since March 2013.

Lynn Franco, senior director of economic indicators at The Conference Board, said “Consumer’s grimmer outlook was driven by increasing concerns about inflation, in particular rising gas and food prices. Expectations have now fallen well below a reading of 80, suggesting weaker growth in the second half of 2022 as well as growing risk of recession by year-end.”

(Note: The working definition of a recession is two consecutive quarters of negative GDP growth, officially declared by the National Bureau of Economic Research (NBER)).

This follows consumer sentiment data from the University of Michigan released last week that showed sentiment fell to a record low of 50.2. The University of Michigan's report had gained outsized investor attention after Federal Reserve Chair Jerome Powell mentioned the inflation expectations component of that data as "eye-catching" during testimony before Congress last week

Given these and other recent reports, some Federal Reserve officials have flagged the risk that inflation expectations will become entrenched among consumers, making the case for the central bank to maintain its aggressive, hawkish posture in the near-term. Cleveland Fed President Loretta Mester said in remarks, “The fact that the salient prices of gasoline and food remain elevated suggests that there is some risk that longer-term inflation expectations of households and businesses will continue to rise.” She suggested she would back another 75 basis point interest rate hike in July if economic conditions look similar through the Fed's meeting next month. Markets are currently pricing in a more than 80% probability that a 75 basis point rate hike will ultimately occur in July, according to CME Group data.

Highlights

• Pinterest (PINS) announced that Google and PayPal executive Bill Ready will take the place of co-founder Ben Silbermann as CEO of the company.
• Short-seller Grizzly Research accused Chinese EV company NIO of fraudulent accounting and “using an unconsolidated related party to exaggerate revenue and profitability.” Here is NIO’s response refuting the report, calling it “ without merit and contains numerous errors, unsupported speculations and misleading conclusions and interpretations.”
• Shares of Upstart (UPST) opened sharply lower after Morgan Stanley cut their price target to $19 from $88 previously. Morgan Stanley suggested the consumer lending platform would come under pressure due to the cyclical nature of the business.
• Seems like a lot of negative news today, huh. In another report, analysts at Bank of America allege Bed Bath and Beyond (BBBY) are cutting A/C in order to save money. A representative for BBBY responded saying, “We've been contacted about this report, and to be clear, no Bed Bath & Beyond stores were directed to adjust their air conditioning and there have been no corporate policy changes in regard to utilities usage.”
• Snapchat on Wednesday confirmed it's debuting a new subscription product called Snapchat+, "a collection of exclusive, experimental, and pre-release features" for $3.99 monthly.
• First Solar (FSLR) has decided against building a new factory in the US, citing uncertainties regarding trade policy and tax incentives.
• The Indian government has issued an ultimatum to Twitter Inc to comply with the country's Information Technology Rules after the social media platform's repeated failures to act on the content take-down notices sent under the act

““I haven’t failed. I’ve just found 10,000 ways that won’t work.” – Thomas Edison

3 Crypto Coins Ready To Change History

The coin market has produced many millionaires and is attracting more buyers and crypto enthusiasts by the day. This influx has resulted in the launch of new cryptocurrency projects with a wide range of features, services, and benefits. Bitcoin and Ethereum are considered mature, and the new generation of crypto coins is ready to take over, leaving the grandparents behind. Buyers are now faced with the difficult task of determining which ones are the best to withstand market volatility while displaying high growth potential. Dogecoin (DOGE), Polkadot (DOT), and RobeApe (RBA) are three such coins with limitless potential.

Dogecoin (DOGE) – Old Doge New Tricks

Dogecoin, a meme coin, went into circulation in 2013. With the public support of business magnate and entrepreneur Elon Musk, its popularity skyrocketed. DOGE had a strong run in the cryptocurrency market until the latest crypto winter in January 2022.

The decentralised digital token was at the forefront of the crypto bull runs in 2018 and 2021. Because of its characteristics, coin market influencers see DOGE as a successor to Bitcoin and Ethereum. Dogecoin's open-source blockchain architecture makes it the easiest to access and use.

DOGE is interoperable with the Binance Smart Chain, allowing faster transactions, increased efficiency, and more excellent serviceability at a lower cost. Connecting to other ecosystems with the same degree of flexibility as the Ethereum blockchain and the Solana network is possible.

Dogecoin has very high scalability and interoperability, opening up a vast horizon for developers to pioneer and profit. DOGE's acceptance as a payment currency is steadily spreading throughout the community.

Polkadot (DOT) - Be a part of The Dots!

When the first COVID-19 wave decimated financial markets in 2020, Polkadot entered the coin market. DOT defied all odds to remain resilient, while the value increased by 9900 per cent by the end of 2021. The open-source blockchain technology is a crucial driver of its expansion.

The Polkadot features extensive multi-chain interoperability. Its protocol is intended to connect all types of blockchains in the cryptocurrency market. This enables DOT users to access various ecosystems, transact, and exchange information freely. They can also build innovative crypto solutions by combining tools from multiple ecosystems. Polkadot offers tailored security for both public and private blockchain networks. These features contribute significantly to DOT's value, utility, and rising adoption at all levels.

Buyers are optimistic about Polkadot now that DOT is back in the race for multi-chain interoperability and sustainability.

RBA (Robot Ape) Beats its Chest

RoboApe presales are still a hot topic in the cryptocurrency market. The degree of governance reform and decentralisation it promises has attracted many buyers. Crypto enthusiasts have begun to refer to the RBA as the future of cryptocurrency and the catalyst for a bull market.

The RoboApe ecosystem relies heavily on a strong community ethos. Its crypto community provides users with increased accessibility, earning opportunities, and influence. RoboApe Swap pushes interoperability with other blockchains to new heights. In the coin market, users can perform cross-chain token swaps.

RoboApe includes a deflationary mechanism to protect against a potential massive drop in RBA prices. The ecosystem eliminates a fixed number of RBA coins at regular intervals to keep the cryptocurrency's value from falling.

RoboApe is planning to open a crypto learning academy. This will include a variety of crypto learning resources to educate users on various aspects of the coin market. Users can create and participate in games and eSports, host events and print and sell NFTs.

The fundamentals of these cryptocurrency projects continue to be clear and encouraging. They introduce novel features to the ever-changing cryptocurrency market, which crypto enthusiasts adore and seek to exploit. Buyers are encouraged to diversify their portfolios with **Dogecoin, Polkadot, and RobeApe**.

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The Bubble Crash? Scrambling, speculation, bull and bear market change, the value lives forever!

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Warren Buffett once said a very classic sentence: “When the tide fades, we will know who is swimming naked”. In half a year, the BTC has fallen from a high of 69,000 to 20,000, and the market has experienced a rapid bull-bear transition that many people have not yet reacted to.

Bear markets are usually accompanied by a series of black swans, starting with the de-anchoring of ust, which led to LUNA’s market capitalization of $41 billion, falling to less than $16 million in two days, a plunge of 99.9%.

The butterfly effect triggered by Luna’s return to zero also extended to the whole market little by little.

Luna’s crisis was transmitted to Three Arrows Capital. Three Arrows Capital is currently one of the largest venture capital firms and hedge funds in the crypto space. Three Arrows Capital had spent about $560 million on 10.9 million LUNAs, but instead of trading and circulating on the market, these LUNAs were almost entirely pledged on the chain. The collapse of Luna-UST came unexpectedly, and in a wave of selling in just a few days, it was left with only about $600 of its hundreds of millions of dollars invested in the Luna project.

On June 16, crypto trading platform, AEX, announced that it was suspending withdrawals from mainstream assets such as Bitcoin and Ethereum. On June 19, crypto trading platform, Hoo announced that it would stop withdrawals. The successive difficulties of the AEX and Hoo Tiger trading platforms, reflects the weakness of many second and third-tier exchanges in terms of risk control

During the bull market, everyone is excited, and the high growth of performance covers up a lot of problems. The tide is fading and we know who is swimming naked. After the crisis, we realize how important risk management and safety are.

In retrospect, we find that bull and bear transitions are often good opportunities for exchanges to bend the curve. The bear market in 2015 led to Yunbi, and the bear market in 2017 led to Binance. After the bull market in 2021, the landscape of the three major exchanges has changed.

Bear Market depends on strength!

Crypto as the most attractive market, the frontier of wealth creation, where there is no ranking, only the best service, the most solid technology, and the most perfect experience. This is the game of the brave, this is the battlefield of the young.

From the earliest Bitcoin China to the later Yunbi, OKEx, Huobi, Binance, etc., every year a large number of new players will enter and challenge the older generation of exchanges, while a number of obsolete players will gradually be eliminated by history, and the first echelon of exchanges is changing almost every quarter.

Bear markets are a time for internal work, and with each round of bull and bear transitions, there are always a number of exchanges that are silent in the bear market. There are also a few exchanges that practice their internal skills and stand out from the rest.

To test whether an exchange is reliable, you need to look at how long it has been in business. Generally, exchanges that have been established for more than four years and have traversed the bull and bear markets are relatively reliable. After all, inside a bear market, there is no bubble, it’s all about real ability.

Compliance and security are the lifeblood of exchanges!

For exchanges, compliance and security are the bottom line and the lifeline!

The thorny times of the cryptocurrency industry are over, and the trend is towards compliance. The bigger the exchange, the more they focus on compialnce, and themore they focus on compliance, the bigger they become in the end, and the further they go, which is the current state of affairs for exchanges.

CoinW, a veteran exchange founded in 2017, is at the forefront of compliance. It continues to pioneer on the basis of holding a number of national and regional financial regulatory licenses, including the US MSB financial license, Singapore MAS license, and SVGFSA license, and was recently granted a cryptocurrency regulatory license by the Financial Crimes Investigation Service (FCIS) of Lithuania.

In today’s economic environment, digital currencies are gaining weight in the economy year by year, and security is the most critical step for investors to choose the best platform. Without security, it is equivalent to scattering funds into the sea without a trace; and compliance is the only most direct judgment for investors to measure whether an exchange is reliable or not. As the compliance process moves forward, CoinW’s global development layout is becoming faster and faster. Currently there are 16 localized trading service centers in 13 countries, providing services to over 7.5 million users worldwide.

Exchanges are not an easy job. Risks come from many sources: technology, policy compliance, operations, etc. Entering the first echelon is not meant to be restful. In 2014, MT.Gox went bankrupt, and in 2019 Binance was hacked to 7,000 bitcoins worth hundreds of millions of dollars. Without strong nerves and diamond, the average person can not really take this porcelain work.

Only every moment, with fear and trepidation, putting the interests of users first, with high standards and high requirements. Then we can go through the bulls and bears market to embrace the ultimate victory.

Only by adhering to the service tenet of “ No Evil” and “User First”, we have accompanied the platform users through several times of bulls and bears. We will continue to expand the globalization of our brand by deepening the lifeline of compliance and safety. Only then can we gain the recognition of people in more countries and regions.

What’s different about this bear market?

The Olympics, the World Cup and other major world events are held every four years. The halving of the Bitcoin is also basically every four years, and there have been four bull and bear market change in the past. The beginning of each bull market is the time to release the bubble. The wealth effect attracts a large number of emerging forces to enter the market, while the bear market is a process of de-bubbling, letting speculative people out and quenching value investors. Let the worthy projects sink in.

The 2022 Crypto market crash is a little different from 2018 in two ways. This time, the industry as a whole will be less impacted than in 2018 because crypto project owners are generally funded in stablecoins.

This happened against the backdrop of the dollarization and secularization of the Crypto industry, which has largely been dollarized since 2018 as it has gradually accepted U.S. dollar stablecoins as its base currency.

Unlike 2018 when the whole industry spoke about new public chains. the narrative structure of the Crypto market has changed greatly in the past two years, and several new directions have emerged rapidly in the market, such as DeFi, NFT, GameFi, Web3 , Metaverse, etc., which have a relatively clear and secular logic of value creation and distinct competitive advantages.

Also, because of financial instruments such as DeFi, the centralized capital institutions of large-scale collateralized lending and credit lending, which were mainly hit by this crisis, were forced to liquidate their collateralized assets under short-term debt pressure, exacerbating the chain collapse of liquidity. So, unlike the blunt knife cuts of 2018, the current bear market has been characterized by a particularly fast knife.

Overall, anchoring the U.S. dollar as the currency of circulation, has made the Crypto market more accessible to the general market and made it more resilient and less volatile. The iron bottom of the current bear market is expected to be basically around $16,000-$18,000.

As the global integration process intensifies and more people in emerging countries and regions embrace the Crypto market, its value will be gradually released. This process is likely to be more than twenty years, so the industry-wide dividend is at least twenty years away.