Gm,
The crypto market is getting absolutely clapped after another big sell-off during Monday’s European hours.
Bitcoin has reached its lowest level since July 24 while Ether has reached its lowest level since July 28 even as technical indicators signal oversold conditions. At the time of writing, BTC is currently exchanging hands around $33,000 while Ether is hovering around $2,200.
The emotional sell-off can be attributed to the fears that the Fed and other Central Banks will move a lot quicker than expected in order to tighten monetary conditions which have been fairly lax since the start of the pandemic back in March 2020. The trillion-dollar stimulus injected into the economy is widely seen as the reason for bitcoins astronomical gains in 2020 and 2021 including the ATH of $69,000 seen in November 2021.
It is quite extreme to see a 50% decline without any sort of rally even for bitcoin but then again that just reminds you how volatile cryptocurrency markets can be.
The main concern investors have is that bitcoin closes below the $34,000-$35,000 on the daily chart. If we see a close below this level, there is the possibility we see $30,000 or below.
Buckle up and turn those price alert notifications off.
Markets
As of 24th Jan 2022
(source: coinmarketcap)
Headline roundup
US Fed’s digital dollar working paper emphasizes privacy (LI)
El Salvador purchases 410 more bitcoins amid market drop (CD)
Hennessy joins luxury blockchain consortium Aura (LI)
FDIC-backed banks send stablecoins in USDF first (CD)
Allfunds Blockchain Renta 4 process first transactions for tokenised fund (LI)
Google hires PayPal vetern as part of crypto push (CD)
Metaco, IBM partner with Union Bank Philippines for digital asset custody (LI)
Gemini introduces prime brokerage following second acquisition in a week (CD)
Google labs gets into blockchain (LI)
Morgan Stanley says crypto markets are weakening as Central Banks look to tighten (CD)
Singapore central bank curbs cryptocurrency promotion (LI)
CBDC
Eastern Caribbean CBDC pilot DCash goes down (LI)
Bank of Korea says the first phase of CBDC test completes successfully (CD)
VC
Tom Brady’s NFT firm Autograph raises $170m (LI)
The Graph, the ‘google of blockchains;, raises $50m in round led by Tiger Global (CD)
E-Commerce giant Mercado Libre invests in crypto firms Paxos and 2TM (CD)
Animoca brands lead $6.5m round for decentralised exchange (CD)
Decentralised cloud service Aleph.im raises $10m (CD)
Trading technology provider BlockFills raises $37m for expansion (CD)
Andreessen Horowitz looks to raise $4.5bn for new crypto funds (CD)
Crypto VC firm Inflection launches $40m fund to build ‘Open Economy’ (CD)
Mechanism Capital launches $100m ‘Play-to-Earn’ gaming fund (CD)
Meme of the week
About Me
My name is Michael Burke, and I started working in the blockchain space about 4 years ago, firstly with Deloitte, now with R3, where I help our customers build enterprise solutions utilising the Corda platform. My interest in blockchain and cryptocurrency stems from the sheer potential of the technology to completely transform industries and value chains for the better.