Triaconta Weekly #170
The following topics will be addressed in this weekly.
- Bundles performance
- Winners & losers
- Market overview
Historic buying opportunity or are we in a downward trend for the coming months? Analysts just don’t agree. A lot of money is staying on the sidelines. The whole market seems to be waiting for the next step, and few are willing to make it now. Unfortunately, our Bundles have recorded a significant drop this week.
1 Month: -13.45% | 7D: -15.60% | 24H: +0.92%
1 Month: -18.79% | 7D: -22.47% | 24H: -0.04%
1 Month: -25.75% | 7D : -23.39% | 24H: +3.05%
1 Month: -29.36% | 7D: =-24.16% | 24H: -0.31%
Winners & losers
Prices have been improving since Wednesday. Nevertheless, there have been only big losers over the week. At the top, AAVE (-31%) and QTUM(-30%) but also large coins such as NEM (-30%), NEO (-30%) and DOT (-30%) gave up considerably. Smallest drop this week is for Cardano (-9%).
One of the largest migrations of Bitcoin hash power in history appears to be underway. After an official ban on mining in some Chinese provinces, many companies are migrating their computers outside the Chinese borders. The short term implications of this are a rapidly decreasing hashrate and with it a decreasing price. Just like we saw in mid-April, the Bitcoin price follows the hashrate downwards and as the hashrate increases, upwards. In the long run, the hashrate will return and with it the price. The ultimate result is more decentralization, less China panic and even better security of the Bitcoin network. Add to that the environmental benefits and we can even call the current development good news.
On the stock exchanges we see more and more money (ATH $17 billion in stable coins) on the sidelines ready to buy again at certain price levels. That always seems to happen for Bitcoin around €25,000 ($30,000). The general expectation is that a bottom will be reached this summer and, according to some, has already been set this week. Now if we go further up and we go above €34,000 ($40,000) for example, then the FOMO will come and no one wants to miss the €85,000 ($100,000) increase that many also expect this year.
El Salvador is handing out 3,440 BTC or nearly $117 million in Bitcoin to its citizens. It’s about $30 or half a day’s wages per adult through a dedicated app. On June 8, El Salvador announced as the first country in the world to accept Bitcoin as legal tender.
Crypto investments soar
Cryptocurrency prices have fallen sharply, but investments in “the future of finance” have definitely not. Venture capitalist Andreessen Horowitz announced on Thursday that he has raised a whopping $2.2 billion for his highly anticipated Crypto Fund III. Initially, the fund was rumored to be $1 billion. Subsequent reports estimate it at $2 billion. The $2.2 billion announced amount suggests that now is a great time to start raising money for crypto investments. Crypto Fund III will invest in crypto projects at all stages, from early seed-stage projects to fully developed networks at a later stage.
Solana (SOL) will host tokenized shares of a range of companies, including Facebook, Apple, Google, Netflix, Nvidia, PayPal, Square and Tesla. Digital Assets AG (DAAG) plans to place 55 tokenized stocks on Solana’s blockchain. The Swiss company already offers limited shares in listed companies on exchanges such as Binance and FTX. These new equity tokens are regulated assets that represent the publicly issued offering of shares. The securities prospectus of DAAG Tokenized Stocks has been approved by the Financial Market Authority (FMA) of Liechtenstein, making the token shares valid throughout the European Economic Area. This means that ownership and trading of the tokens is no longer limited to a single exchange and all kinds of DeFi applications are even possible.