Weekly Digest: Chung’s Picks of the Week (9/1)

Market hits max pain this week as market sentiment nears its all time low and Bitcoin sits near prices from January 2021.

Extreme Fear 

The crypto market took a hit far worse than other equity markets when the minutes of the December The US Federal Reserve (Fed) meeting were revealed. Investors shifted their portfolio allocation to assets that are deemed less risky and fear took a firm grip on the crypto market as retailers turn bearish. 

Source: Selling pressure seems to be abating but many investors are still cautious 

Many retailers are sceptical that there is more upside potential for Bitcoin ($BTC). When in doubt, having the right perspective is important. On January 1, 2021, Bitcoin was trading at $29,668. 

Source

In order to build the case for Bitcoin and the larger crypto market, the bull cycle is not over for a few reasons: 

The bull cycle often ends with a blow-off top

Bitcoin and Ethereum supply in exchanges continues to dry up

Non-exchange wallets are showing Bitcoin whales adding to their Bitcoin holdings

Fiat continues to flow into crypto exchanges 

Weekly Recap

Taboo token, an adult content marketplace launches its first full iteration. 

Wall Street Bets Dapp launches its own Decentralized Finance (DeFi) Exchange-Traded Portfolio (ETP). 

India cracks the regulatory whip on Binance owned WazirX in a tax crackdown

Scammers get creative in executing a ‘Honeypot’ scam by deploying the $YEAR token.

Coin98 gets a boost from Binance Labs to improve on DeFi infrastructure on the Binance Smart Chain (BSC).

OpenSea closes its Series C funding round with an insane valuation of $13 billion. 

Head of US policy in FTX believes that US lawmakers are warming up to crypto. 

Woo Network secures a $12 million investment from Binance Labs

SecondLive kickstarts its metaverse event by celebrating the Binance Smart Chain (BSC).

MoneyGram invests in Coinme for its international expansion. 

Airbnb’s Chief Executive Officer signals a move to accept crypto payments

Coinbase’s Chief Product Officer (CPO) predicts regulation on DeFi and Decentralized Autonomous Organisation (DAO) 2.0.

Market Sentiment

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The market volatility has successfully shaken out some retailers.

The overall market sentiment has turned bearish.

Market volatility is expected to reduce and it is likely that a small relief rally may pan out in the middle of the week.

The broader crypto market will remain uncertain until the Fed move is priced-in. 

Recovery is expected to be slow and gradual until Bitcoin breaks bullish.

Maintaining the right perspective is important. Market participants are often engulfed in emotions and make hasty decisions.

Source: The start of Bitcoin’s rallies are often indicated by ‘extreme pessimism.’

Coins to Watch

Long term prospects: Polkadot($DOT), Terra ($LUNA), Avalanche ($AVAX), Cosmos ($ATOM), and THORChain($RUNE).

Good projects are developing in Polkadot after its successful parachain auction. This is a vote of confidence by the developers’ community.

The long term success of any network depends on the amount of activities on it.

Source: Polkadot development activity will definitely be reflected with positive price movement. 

Navigating 2022

2022 did not start with a bang, but it makes us reflect on why we are invested in the crypto market. Are we here solely for the gains, or are we here because we believe in the future that decentralization offers? Most of us are here for the gains, but many of us stayed after understanding how much crypto has to offer. 

It is a risky asset class, but the good risk-reward ratio makes it worthwhile. The market will test its participants time and again. Those shaken out will probably leave with some resentment towards crypto. The value that crypto brings is measured by more than the value of the JPEGs that sit in OpenSea. 

When in doubt, zoom out and ask if you really believe in the narrative of Bitcoin and Web 3.0. 

Source : bsc.news

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