Weekly Digest: Chung’s Picks of the Week (28/11)

Crypto market goes on a Black Friday special as extreme fear hits the market.

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Markets Held at Ransom

Markets around the world fell as coronavirus continues to wreak havoc. Dow Jones Industrial Average (DOW) fell by 905 points pulling the crypto market along with it. Bitcoin fell from $59,000 to $53,355 on Thursday for an early Black Friday sale. This came amidst news of a new covid-19 variant named ‘Omicron’ that is highly transmissible. At the time of writing Bitcoin is trading at $54,714. 

The market is in a state of fear, reminiscent of the March 2020 crash where Bitcoin lost more than half of its value in two days on news of the Covid-19 outbreak. Will Clemente, an on-chain analyst believes that if the $53,000 bull market support band for Bitcoin is broken, the crypto market may turn bearish.

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Weekly Recap

Ethereum supporters are starting to switch allegiance to other Layer-1 solutions citing high gas fees.

Changpeng Zhao (CZ) engaged in a Twitter spat with Elon Musk over Doge stoppage after Musk called the incident ‘shady’.

Axie Infinity land plot sells for 550 eths amounting to $2,339,700.0 at the time of purchase. 

Pokemon Go’s creator ventures into the metaverse with Fold to launch Bitcoin rewards. 

Australian regulator, Joe Lango acknowledged that cryptocurrency is impossible to ignore and spoke about Decentralized Autonomous Organisation (DAO)  

Former Presidential candidate, Hillary Clinton pushes for crypto regulation.

Decentraland hits all-time high as the metaverse real estate frenzy kicks in. 

Snowdog ($SDOG) a fork of OlympusDAO suffered a massive drop in price as the promised buyback failed to take place. 

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Market Sentiment

PlanB concedes that his prediction of a $98,000 Bitcoin at the end of November based on the floor model may be the first miss but maintains his conviction for a $100k Bitcoin by year-end.  

• Ethereum is seeing a mass exodus of users as its fees remains high. Vitalik Buterin proposes a calldata limit per block to reduce gas costs.

The metaverse theme is still playing out as Decentraland ($MANA), The Sandbox ($SAND), and Render Token ($RNDR) hit their respective all-time highs. 

Binance lists Render Token on its exchange as interests continue to pile up on the project. 

Most market players will adopt a wait-and-see approach until a clearer indication emerges.

Bargain hunters and long-term hodlers are spoilt for choice as fundamentally strong crypto assets are trading at huge discounts.

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Coins to Watch

Projects such as $ETH, $LINK, $DOT, $BNB, $SOL, $AVAX, $JOE & $CAKE are good picks for long term investors.

Play-to-Earn sector continues to gain momentum as new concepts such as Smart Non-Fungible Tokens (NFTs) are introduced to allow for in-game assets to be traded in real-time. 

DeRace ($DERC) is building an entire ecosystem powered by its token, creating positive tokenomics that will drive its value. The gaming industry is a large market that promises huge potential. 

Terra ($LUNA) will be a coin to watch as regulators start to tighten the noose on centralized stablecoins. $UST the fifth-largest stablecoin in the CoinMarketCap will likely remain untouched because of its decentralized structure.  

Launchpads such as Seedify.fund ($SFUND) and Enjinstarter ($EJS) will entitle its token holders to certain allocation before the Initial Game Offering (IGO). For this reason alone, there will be interest to buy these tokens.

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Summary

Coins that fall within the metaverse theme will continue to be on the uptrend as long as the market does not turn bearish. Market capitulation often presents buying opportunities for long-term holders. A better understanding of the new Covid variant may quell some jittery nerves as more research data emerges. The market will likely recover or trend sideways.

Come back next week for another iteration of Weekly Digest: Chung’s Picks of the Week from BSC News. Be sure to follow Chung on Twitter.

Source : bsc.news