Dear Teroxx Community,
This week we saw a digital asset market that showed slow movements without huge breakouts.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
The media is rehashing the well-worn narrative around Ethereum replacing Bitcoin in power, with wildly divergent predictions. In view of the current weakness of Bitcoin (BTC) and the strength of Ether (ETH), some media representatives are now again muttering about the big “turnaround” (“flippening”). This suggests that the market leader will soon be overtaken by the runner-up. For example, Tegan Kline of blockchain firm Edge & Node tells the paper that the leading altcoin “will pretty much surpass Bitcoin in the future in terms of innovation and developer interest.”
Another quoted expert also attributes “better growth opportunities” to Ethereum.
Currently, however, this point in time does not seem to be foreseeable yet. Bitcoin’s dominance is currently too great to speak of a replacement.
The digital euro is intended to help the ECB compete with “foreign tech groups.” The European Central Bank (ECB) warns that a central bank digital currency (CBDC) or digital euro is urgently needed to avoid losing the battle with “artificial currencies” for international payments.
The ECB comes to the corresponding conclusion in its annual report called “The International Role of the Euro.” In it, the two economists Massimo Ferrari and Arnaud Mehl express their concern that “foreign tech corporations” are gaining massive influence with their own digital currencies. Although Facebook is not explicitly mentioned, this is most likely an allusion to its crypto project Diem: “A worrying scenario is that international payments will be dominated by non-domestic providers, including tech groups that want to offer artificial currencies in the future.” Here, it becomes clear how digital assets can influence the future and that regulators feel compelled to act to avoid relinquishing “power.”
Sales and wallets in the NFT market are declining dramatically, but is this the end of the technology? The much-hyped NFT market has lost even more heavily than the crypto market as a whole over the past month, with sales through NFTs now down a whopping 90% from their early May high.
As Protos’ data shows, the NFT market is currently imploding abruptly in nearly every sector.
While non-fungible tokens (NFTs) worth $102 million were sold in just one day on May 3, only $19 million were traded in the entire past week. At the previous month’s best times, more than $170 billion was raised through NFTs in seven days, down nearly 90% from today.
Hypes come and go. Entering at the wrong time has led to big losses here. However, hypes often see a bottom, which is then followed by the true market. This is where new opportunities arise.
Technical term of the week
Limit order: Describe orders that are not executed immediately per market order (market price), but are placed in the order book at any price. This is popular for stop-loss orders and for different entries at predefined buy points.
Crypto Market
Bullish outlook: Further, a long-term bounce would see the $40,000 level switch to support, keeping the market positive.
Bearish outlook: $33,000 should serve as support. Should this not be the case, sell-offs to below $30,000 could follow and continue the bearish market.
