Welcome to Market Debrief, where we summarise some of the notable events that happened throughout the week.
The crypto landscape is ever-changing with new innovations and regulations popping up every day.
It is very hard and time-consuming to keep track and filter all the latest news in this space, and so the Chain Debrief team decided to compile it into an easy-to-digest article.
Market going up or down?
Bitcoin has pulled back since it met its higher highs over the past few days. The surge saw BTC price hitting the US$48,000 mark, after breaking upwards of the US$45,000 level.
Since then, BTC is currently hovering around its pullback level of US$43,000, holding the key support level of US$42,000.
The Stochastic RSI level, the daily and 4-hour chart are at the bottom, usually a good indicator of a positive price movement. Whatever goes down must come up too, right?
Inversely, the USDT Dominance is found in the overbought position around the 80% territory region which represents its exhaustion towards the upward side.
This could be a good indicator as we want the USDT dominance to fall which translates to USDT holders deploying their funds into the market and getting into coins, likely pumping the alts. Now is a good time to set your limit orders, and stray away from leverage.
At present, the Fear & Greed index, currently at 37, is leaning towards fear. As seen in the market sentiment, during this time of writing, it looks like the market is still deciding on which direction to head towards.
In a bullish case, we have to look at breaking the US$48,000 level as it might give us the push upward in search of our previous all-time highs.
For the bears and the shorters, keep a look at the US$42,000 level as when it breaks this major support line, things might just go crazy.
Do Kwon ending DAI?
Terra, Frax and Redacted Cartel joined hands to introduce a brand new Curve pool standard, 4pool. It comprises of two centralised stables (USDC & USDT) and two decentralized stables (UST & FRAX).
This partnership would draw liquidity out of the 3pool and into the 4pool. The 3pool is the largest and most-utilized stable liquidity pool that consists of USDT, USDC and DAI. Without DAI in the picture, it could have a detrimental impact on MakerDAO.
This new curve war could see the end of DAI as it losses liquidity and depegs in the process. Once DAI starts to depeg, it would cause MakerDAO to topple.
While this could be the ideal scenario for Terra, MakerDAO does have deep pockets and may be able to fend off this joint attack.
Over 90% of Bitcoin mined
Bitcoin hit a new milestone with 19 million Bitcoin mined and only two million left for the next 118 years. The last Bitcoin is expected to be mined in 2140.
The current Bitcoin inflation rate is 1.74% and the next halving is expected to occur in 2024 where the inflation rate will continue to slide.
This highlights the scarcity of Bitcoin as there is only a fixed supply of 21 million Bitcoin. This might lead to a price hike as more start to FOMO into Bitcoin.
11 BAYC and MAYC stolen within nine days
NEAR raised another US$350 million in funding
Terra add another US$230 million BTC
This article was written by Gabriel Sieng and Joel Zhao.
Featured Image Credit: Chain Debrief