Dear Teroxx Community,

This week we saw a digital asset market which could easily break away from support levels.

Weekly overview

As usual, we are also providing detailed videos for those who want to delve deeper into the subject.


Digital Asset News

Due to the ongoing demand from institutional investors, the existing supply of Bitcoin is getting smaller and smaller. Although the Bitcoin price is currently fighting hard to maintain the psychologically important $40,000 mark, demand from institutional investors remains high. In this context, Ki refers to the latest data from Coinbase Pro, the professional offshoot of the American crypto exchange Coinbase, because considerable capital movements were evident here recently.
On one day this week alone, 30,000 BTC were bought up, an occurrence that has become more and more the rule since March.
“Institutional investor buying is likely to be the big theme again in the coming weeks, as the executive order had no real impact.”
This is the expert’s reference to a recent executive order by U.S. President Joe Biden, which is explicitly directed at the crypto industry, but does not seem to be stopping large investors from continuing to invest heavily in the market.

Ripple Labs has scored a major victory in its lawsuit against the SEC. The SEC had sued Ripple for selling unregistered securities. Presiding Judge Sarah Netburn denied the SEC’s motion to seal documents related to a June 2018 speech by then-SEC Director William Hinman. In the speech, Hinman said bitcoin (BTC) and ether (ETH) are not securities.
The SEC had not previously objected to releasing these documents, which it said only reflected Hinman’s personal views and not those of the SEC in general.
The so-called deliberate process privilege is a right that agencies can invoke to avoid having to release documents. Judge Netburn commented that the SEC should not contradict itself in order to spin allegations. In her ruling, she wrote:
“The SEC wants to dance at two weddings, but speech should either reflect agency policy or it should not. Having insisted that it reflect Hinman’s personal views, the SEC cannot now retract its own position.” It thus visibly appears that the SEC is coming under increasing pressure, which could lead to Ripple’s share price recovering in the future.

The average transaction fee per bitcoin transaction (BTC) has extremely decreased again in almost two years, now settling at around $1.039. The last time such a level was recorded was in July 2020. The average BTC transaction fee has steadily declined since its all-time high of $62.788 in April 2021. The BTC transaction fee is the fee incurred for transferring a BTC amount. This is also proportionally directly related to the time required to validate and complete the transaction.
More and more countries are not as strict towards the Bitcoin ecosystem and the network keeps getting updated. As a result, more and more people participate in the network and strengthen it. At the same time, this has a deflationary effect on the bitcoin price.

Terra USD (UST), an algorithmic stablecoin on the Terra blockchain, has overtaken Binance USD (BUSD) to become the third largest stablecoin on the market.
UST is a stablecoin pegged to the US dollar that was launched in September 2020. The minting mechanism involves the burning of a reserve asset such as Terra (LUNA) in order to mint an equivalent amount of UST. However, the trading volume is still far below that of Binance’s stablecoin. According to CoinGecko, UST’s total market capitalization has increased by 15 percent in the last 30 days and stands at around $17.5 billion at press time. This currently makes UST the third largest stablecoin. It was able to overtake BUSD, which has a market capitalization of $17.46 billion.

Technical term of the week

Tightening of Supply: Initially, a decrease in supply does not necessarily mean price changes in assets. However, if demand remains the same or increases, prices inevitably rise. This effect takes place in almost every industry today, but in the case of digital assets, it often leads to major outbreaks.

Crypto Market

Last week we saw market moves that were smaller due to the holidays and the resulting fewer trading days.Bitcoin hovered in a very tight trend channel between ~$41,300 and ~$39,000 throughout the week, which overall led to market stabilization and support confirmation. Altcoins were also able to benefit from this slightly positive market structure and establish support zones. From these levels, the market saw slight upswings following.

Due to the Easter holidays, the volume in the market decreased noticeably, which meant that lower volatility determined the market.  This tends to make markets more difficult to assess. It can be seen as a positive sign that the market did not experience any major sell-offs despite the low volume. This means that there are currently no major ambitions of market participants to sell coins and tokens.

BTC/USDT, 60

Bullish outlook: breaking $45,000 would start and establish a bullish trend.

Bearish outlook: Loss of support region at $40,000 long term would lead to a negative market trend.