Dear Teroxx Community,
This week, we saw a digital asset market that saw sell-offs on a weekly basis and could not maintain previous price levels in most digital assets. In lockstep, the global financial markets also saw major pullbacks last week.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
Market-leading crypto asset management firm Grayscale has finally made its two Bitcoin (BTC) and Ethereum (ETH) investment trusts accessible on the Robinhood trading platform, which is popular primarily with retail investors.
So as of today, Friday, Robinhood users can easily invest in the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE) via the platform’s app. Through their investment, investors acquire equity shares in the respective investment fund.
The Grayscale Bitcoin Trust is the largest bitcoin investment fund ever. As of today, there are $24.6 billion in assets in the investment vehicle. Meanwhile, the assets under management (AUM) for the Grayscale Ethereum Trust amount to $329 million.
Luna Foundation Guard (LFG) is a Singapore-based nonprofit organization associated with the Terra Luna ecosystem. This has now raised $1.5 billion to buy more Bitcoin (BTC) for its reserves.
With the money, LFG was able to buy 37,863 BTC via over-the-counter swaps with broker Genesis Trading. Additionally, it also bought BTC through Three Arrows Capital, a leading crypto hedge fund. The company said Thursday that this deal included a $1 billion over-the-counter swap with Genesis against $1 billion in UST and a $500 million purchase of BTC from Three Arrows Capital.
LFG now holds about $3.5 billion worth of BTC, making it one of the 10 largest bitcoin holders in the world, according to CNBC!
Bitcoin (BTC) is becoming increasingly popular in the UK, boosting crypto adoption there. More and more Brits are buying cryptocurrencies, according to a Qualtrics study conducted by Coinbase.
The key finding from it is that 33 percent of the popular own crypto. That compares to 29 percent in October 2021. In addition, more than half (61 percent) of respondents said they plan to buy again in the next 12 months.
Danny Scott, CEO of the UK’s leading bitcoin exchange CoinCorner, finds these numbers “incredibly high.” Scott said, “we’re having a quiet period in the retail investor market at the moment.” He added that “when the price settles down, newcomers will also show more interest.”
In all likelihood, the percentages won’t be accurate, because is the environment, the age structure and the amount of people surveyed that determine a survey’s success. However, it illustrates that digital assets are part of everyday life and investment portfolios for many!
Technical term of the week
Market structures: Represent the overriding sentiment and development of the market in the recent past and thus project recommendations for action in the near future.
Negative market structures usually ensure fewer market participants, falling prices and uncertainty. Positive market structures usually result in increased trading volume, participants entering the market, and rising prices.
Digital asset market
Globally, eyes were on the U.S. and the FED last week. The latter held its meeting and was about to announce the key interest rate adjustment. Many analysts estimated the increase at 0.50% and were also correct. However, due to the uncertainty that arose beforehand, many market participants decided to sell / reduce their positions. This supported the selling pressure of recent weeks and the markets gave slightly. Around the announcement of the key interest rate adjustment, the market experienced a short-term upswing, but could not hold this and faced larger sell-offs.
This was true for the global stock markets, as well as for a large part of the digital assets. Bitcoin thus had to say goodbye to the $40,000 resistance and was also unable to use the following support levels at ~$37,500 and ~$35,000 for a price reversal. Also over the weekend, no positive trend could be established in the market and also the trading volume decreased further, whereby the uncertainty in the market became clear. Also the new start of the week could not set any accents, as the global futures indices again opened negatively.
The markets are under strong pressure due to the multiple “crises” and “challenges”, this is illustrated by the currently prevailing negative trend. Thus, capital protection was the top maxim in the past week.
Bullish outlook: A global market trend and upswing (3-6%) would provide a big bounce for many pressured prices in the digital asset space.
Bearish outlook: Loss of support region would be able to push Bitcoin below the psychologically important ~$30,000 level.
