Biden’s Executive Order – Chung’s Weekly Digest (7/18)

Nation-states are prioritizing rolling out a comprehensive regulatory framework after the recent crypto meltdown but the U.S. is still dragging its feet.

Resistance to Change

The world needs a crypto regulatory framework after details of excessive risk-taking and total disregard for users’ assets are revealed in official documents through trusted platforms. Biden’s Executive Order (EO) on the surface seems to be a positive move that serves to guide responsible innovation in the crypto space. 

However, since March 9 little has been done to ensure that market integrity and consumer protection are protected. Crypto-based institutions such as Celsius and Voyager Digital are clear examples of platform operators relegating customers’ interest in their pursuit of profit. 

Bitcoin ($BTC) is staging a relief bounce but caution must be exercised because a weekend rally is often the result of an illiquid market. There are still several factors that will affect $BTC such as Mt. Gox’s rehabilitation plan, global inflation, geopolitical tension, and miners liquidating their $BTC stash.

Distribution is still taking place as Bitcoin is trying to consolidate above $20k. A clear break above $22.8k would push Bitcoin into bullish territory. The best way forward is to adopt the dollar-cost averaging (DCA) strategy. 

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Weekly Recap

Fed’s Vice Chair calls for accelerating crypto regulatory framework. 

STEPN launches Realm 3 on the Ether Network. 

Cube Network grows as total transactions hit $2.7 million. 

Grayscale considers investing in $CRO, $APE, and $KNC.

CZ rules out Uniswap’s phishing attack as a hack. 

FEG token releases a new roadmap. 

U.S. Treasury to hold a referendum on Biden’s crypto Executive Order. 

Axie Infinity announces summer’s breeding event. 

2 million $BNB taken out from circulation in Binance’s 20th Quarterly Burn Event.

BNB Chain launches Dapp aggregator. 

Thetan Arena launches QuestToEarn. 

Binance Labs opens applications for Season 5 of its incubation program. 

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Market Sentiment

Bitcoin remains one of the best assets to hedge against any state-issued currencies. The narratives that drive crypto assets are constantly changing but crypto’s main value proposition lies in the fact that it is a better store of value than any other known asset class. Digital scarcity is the guarantee that its value will not be diluted. 

Bitcoin’s ethos as self-sovereign money has a major role to play as inflation soars. Other crypto assets such as Ethereum ($ETH) and $BNB have a different fit. They provide networks that allow for automation in a trustless and decentralized ecosystem. 

Bitcoin now sits precariously at its resistance level and if it fails to break past the resistance, it will form a triple top pattern. If this happens, Bitcoin’s price might tumble to the region of $19.5K as its first level of support. If this support is breached, Bitcoin will likely be testing the $18K low.

Potential gains in lower capped altcoins are more promising but there is also the risk of these altcoins losing more ground if the market turns south. Unless a clear positive catalyst is in sight, the market remains in limbo. 

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Coins to Watch

Polygon ($MATIC) – Polygon is a scaling solution for the Ethereum network. Unless Ethereum can solve its high gas fees and congestion, Polygon will have a major role to play.

$MATIC has surged by more than 100% in the last 30-days after sweeping the lows at $0.32. 

$MATIC was oversold and the price action is a natural result once the selling pressure abates.

Polygon has also recently been selected to be part of Disney’s Accelerator Program. 

• Polygon will be one of the major players in Web3 and any metaverse initiatives.  

Solana ($SOL) – One of the main smart contract platforms that are both scalable and cheap has consistently been stepping up efforts to attract developers to its ecosystem.

$SOL is faced with one major problem, its outages which will likely be resolved as the platform has proposed new upgrades to its protocol.

$SOL has also rallied after taking a massive hit bringing its price below the $30 mark.

Cronus ($CRO) – $CRO is the native for the Cronus chain. Just like $ETH, $BNB, and $ADA, $CRO will have a major role to play in Decentralized Finance (DeFi) and Non-Fungible Token (NFT) protocols.

$CRO reached an all-time high of close to $1 and has a lot of potential if it can attract innovative projects to launch on its chain.

Source : bsc.news