Disclaimer: I am not a financial advisor. Anything said in this report is strictly opinion and should not be used as advice. All actions are at your own risk.
I write these updates to keep my community up to date to with cypto markets. Enjoy Reddit!
Crypto Market Update for Nov 6
Completed at 1230 HST
Major News
- US government stablecoin report is out. It recommends that Congress enact laws to treat stablecoin issuers as if they are banks. This could have huge implications for the crypto market, and USDC and USDT stablecoins would be the most likely effected. Decentralized stablecoins such as UST and DAI would most likely be a strong alternative.
- Congress passes 1.2 Trillion Dollar Infrastructure bill which includes provisions on crypto. The bill is now on the President’s desk. Notably the IRS’s definition of a “broker” to include organizations which trade crypto. The definition of a “broker” is vague, and this is concerning to the crypto community because broker is being interpreted to include validators, defi, wallet providers and miners. Read more about this below:
Market Update
- Bitcoin continues to hover around the 60k level where it has been collecting liquidity. On chain metrics and fundamentals are extremely bullish and this could be an accumulation zone for BTC. Taproot update is slated for Nov 16th and this could be a great catalyst for early upward price pressure. More information on Taproot to come in upcoming reports.
- SOL continues to stay strong. Its smaller protocols are beginning to increase in volume and price. The conference for Solana ends on Tuesday and I will be closing out those smaller positions and moving my focus to BTC. Solana is still a great long-term hold.
Notable gains on Solana protocols 7d gains
SOL 27%
SRM 5%
RAY 18.5%
MANGO 40%
ORCA 29%
STAR 14%
AURY 55%
TULIP 91%
- Avalanche is having a very strong week with all the incentives programs. It is up 18% this week. A lot of the smaller protocols on AVAX are having a strong week as well. Many of these protocols have very small market caps and can present large opportunities if played correctly. I’ll be looking deeper into AVAX in the coming week.
Notable AVAX protocols 7d gains
AVAX 18%
JOE 3%
CQT -1.9%
QI 35%
XAVA 33%
PNG 18%
- Terra LUNA is one to keep an eye on with the stablecoin regulations starting to heat up. Terra UST is a decentralized stablecoin that is the most likely frontrunner in mass adoption.
It currently holds a 2.8 billion Dollar MC. The notable information about LUNA is that it must be burned to create UST. With a decreasing supply of LUNA expect strong upward price pressure. If you don’t know about LUNA, now is a great time to study up on it.
- Play to Earn and Metaverse sectors are the strongest performers today with an 8.8% and 6.9% gain for the day. I expect these to continue trending upwards in the coming months as a lot of funding will start entering the space after the major Facebook announcement. I continue to emphasize keeping a close eye on this sector. Metaverse talks are becoming mainstream and with that comes lots of opportunity. The metaverse sector was the strongest sector of the week with a 52% gain.
- Kadena (KDA), an up-and-coming layer-1 has caught my attention. It’s up 88% for the week. It’s time to take a deep dive into this one.
- To stay ahead of the narrative, I’ll begin moving my attention to Bitcoin next week as the major update TAPROOT will be coming out NOV 16th. BTC has been relatively quiet and accumulating. It could be set for a strong move.
NOOB Lesson of the Day
Bitcoin Halving
The Bitcoin halving is a change in the bitcoin protocol that occurs every 4 years. The halving is when rewards for miners get cut in half. This cuts the rate at which new bitcoins enter the market by half as well. It’s part of the scarcity aspect of BTC discussed about in my latest report.
The halving is one of the major events in crypto and it’s why the crypto market historically has followed a 4-year cycle. Lower supply has meant higher demand which has equaled higher price.
There is plenty of information on the halving out on the web, my goal here is to make you aware of it and its implications. Do the deep studying on your own, it’s part of this journey. Goodnight Fam!
- Gabi
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