Crypto Week At A Glance: The Bitcoin Narrative Continues With Adoption And A Bit Of Musk

From the Analytics Team, Giottus Crypto Exchange


Bitcoin (BTC) vicissitudes played out again as its price is now around $40,450, below the weekly high of $43,400. After successfully weathering the US Federal Reserve’s rate hike, the coin saw a 4.8 percent drop over the week. Ethereum (ETH), which neared $3,000 last week, is trading at $3,040, down more than 5 percent weekly.

According to the data, the demand for Bitcoin from large investors has decreased. Coinbase Pro, the professional trading arm of the US exchange Coinbase, reported the downward movement of large tranches of Bitcoin from its books. The tranches reportedly even totaled 30,000 BTC in a single day this week. March had also registered similar patterns.

The global story of Elon Musk making an offer to buy Twitter is also having implications for the crypto ecosystem. We discuss these and other stories of the week below.

Musk tweets, then buys
Dogecoin (DOGE) proponent Elon Musk’s seemingly casual Twitter poll on whether the messaging platform adheres to the principles of free speech has taken on major proportions. Twitter’s top shareholders couldn’t possibly fathom the subsequent turn of events. Musk later became Twitter’s largest shareholder by buying 9.2 percent of Twitter stock. He then turned down the offer to join the board after discussions with the company’s directors. And as a recent spin, Musk has offered to buy 100 percent of Twitter stock to enable faster product innovation.

If you’re wondering what this has to do with DOGE, then here it is. Twitter has a subscription service called Twitter Blue that allows users to undo tweets and has an option to edit the tweet within 20 seconds of tweeting it. Recently, Tesla CEO endorsed DOGE as one of Blue’s payment options, resulting in an 8 percent increase in wealth. Additionally, Musk’s takeover of Twitter is seen as a boon by the majority of crypto investors, as he has been vocal about cracking down on rampant scams targeting amateur investors.

However, Twitter seems to have pushed back on the idea so far.

Terraform Labs gives Luna $880 million
Terraform Labs (TFL), makers of the Terra blockchain, has awarded a generous 10 million LUNA grant worth US$820 million to Luna Foundation Guard (LFG), a nonprofit organization. The new relief tranche comes after LFG received a $1.1 billion grant last week. LFG is working to collateralize TFL’s stablecoin Terra to keep it pegged to the US dollar. The purpose of the fresh fund is still unknown, even when the announcement was made on Twitter on Thursday.

Terra’s founder Do Kwon has the envious task of amassing $10 billion worth of Bitcoin (BTC) to cover UST’s reserves.

Adoption Assistance Partnerships
Colombian delivery app Rappi has partnered with crypto asset firms Bitpay and Bitso to launch a new crypto pilot program in Mexico. Rappi, which offers on-demand delivery of groceries and other goods across Latin America, will allow users to convert crypto into credits within the app to make purchases. Rappi, which operates in Latin American countries, has launched payment services in Mexico to challenge its rival MercadoLibre, which has also recently acquired crypto firms.

Meanwhile, global payments company Mastercard has partnered with crypto lending company Nexo to launch a unique crypto payment card as digital assets become more mainstream. The card will reportedly be available in some European countries first, allowing users to spend their bitcoins without having to sell them. The card is linked to a Nexo crypto-backed line of credit and can be used at 92 million merchants worldwide that accept Mastercard.

Adobe offers Metaverse images: buy, download, and create
Bored Ape Yacht Club and CryptoPunks aside, are you craving those Metaverse photos? Or do you want to get yourself a sparkling NFT album? You can now download images from Adobe Stock or Pexels. Those who are not fed up with the downloads can get creative and create their own using Photo Sphere or Spalsh apps.

Bitcoin Predictions
Despite all the setbacks and US inflation hitting an all-time high, analysts and investors are hoping for a turnaround. Let’s look at two key points: April 11th started with a recapture of $43,000 but fell back below $40,000 the next day, its lowest level in weeks. Traders believe that this is the “drop to” point where a trend reversal is imminent.

Bitcoin’s network shortage is bound to decrease by 0.4 percent, and with the coin’s self-sustaining paradigm in place, the “difficulty” will adjust downward, analysts say. The small size of the adjustment also suggests that miners are also staying afloat despite BTC/USD’s 10 percent plunge.

Large-scale investors are still looking for exposure, and last week’s US President’s order to probe various aspects of the crypto ecosystem hasn’t deterred them.

This Week’s Top Winners – (from 7:00 p.m. 16 April 2022)
1. Kyber Network Crystal v2 (KNC): 14 percent

2. Hearing (AUDIO): 12 percent

3. ApeCoin (APE): 11 percent

This Week’s Top Losers – (from 7:00 p.m. April 16, 2022)
1st mine (MINE): 26 percent

2. Anchor Protocol (ANC): 24 percent

3. Convex Finance (CVX): 17 percent

(Note: Analysis only includes top 100 cryptocurrencies. Source: Coinmarketcap)

(Disclaimer: Experts’ recommendations, suggestions, views and opinions are their own. These do not represent the views of Economic Times)

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers