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TA Highlight
The cryptocurrency market remained in a sideways adjustment phase this week. The overall movement of the cryptocurrency price was relatively small.
On every trading day this week, the BTC spot price moved between $38,000 and $40,500, with most of the time the price was around 39,000. But on the 26th BTC spot had a large intraday price change, with the maximum intra-day spread reaching $3,080, a change of 8.1%. But apart from this intraday price adjustment, the change in BTC spot price movement this week was low.
Looking at the volatility of the moving averages, it can be observed that the price volatility has been showing a decreasing trend. The tightening volatility and price adjustment is a sign that investors are strongly uncertain about the future trend of the token price and are collectively taking a wait-and-see approach.
From the technical indicator MACD, the two curves remain tightly entangled and have been for almost a week, the market buy and sell signals are not very clear.
From the coin price movement trend, the middle line of the Bollinger band, which is also the 20-day price average, is currently an important point for the long and short sides to fight over. When the token price touches the 20-day moving average there will be an obvious rebound state.
As the BTC spot price volatility decreases, the 20-day price average also gradually converges around $40,000. The price may also become an important resistance line for the BTC spot price in the short term. At the same time, the lower Bollinger band is also an important indicator for analyzing the support line of BTC spot price.
The lowest point of BTC spot price this week happens to be close to the lower band of the Bollinger band, which indicates that the current BTC spot price will continue to fluctuate in the middle and lower bands, and if it lasts for two days over the middle rail or below the lower rail, it can be assumed that the BTC spot may undergo a large change: a sign that it may get rid of the current sideways state and enter into an up or down channel.
Investors can choose their investment options according to the market situation, and setting up grid trading between the middle and lower rails of the Bollinger band may be a good trading strategy in the near future.
Crypto Alerts
Twitter accepts Musk's $44 billion buyout offer
On April 26, Twitter announced that it has reached a definitive agreement to be acquired by an entity wholly owned by Elon Musk for $54.20 per share in cash (a total of $44 billion), with the deal expected to close in 2022, according to PRNewswire. Upon completion of the transaction, Twitter will become a privately held company. Musk has secured $25.5 billion in full debt and margin loan financing and is providing approximately $21 billion in equity commitments. There are no financing conditions to the closing of the transaction.
Bret Taylor, chairman of Twitter's independent board of directors, said, "The Twitter board conducted a thoughtful and comprehensive process to evaluate Musk's proposal, with a deliberate focus on value, certainty and financing. The proposed transaction will result in a sizable cash premium, which we believe is the best way for Twitter shareholders to move forward."
Musk said freedom of speech is a cornerstone of how democracy works, and Twitter is a digital town square where people discuss issues critical to the future of humanity. In addition, Musk said, "I also want to make Twitter better than ever by enhancing the product with new features, making the algorithm open source to increase trust, defeating spam bots and authenticating everyone. Twitter has tremendous potential, and I look forward to working with the company and the user community to unlock it."
Musk Endorses Tipping with Dogecoin on Twitter
On April 25, Dogecoin founder Shibetoshi Nakamoto announced on Twitter to add practical functions to dogecoin: 1. To allow more companies to accept dogecoin; 2. to add dogecoin as a tipping currency on Twitter; 3. build a bridge between dogecoin and ethereum, allowing dogecoin to be used with Web3.
Musk responded by agreeing with the first two points, but disagreed with the need to build a bridge between ethereum and dogecoin.
Optimism will issue OP tokens
According to an official announcement, Optimism, an ethereum expansion solution, officially announced that it will issue the native token OP and announce the economic model and its governance system Optimism Collective.
In terms of the economic model, the total initial supply of OP is 4,294,967,296 tokens, and the total supply will be issued at a rate of 2% per year. 19% of the initial OP supply is reserved for user airdrops, of which 5% will be allocated in Airdrop #1, and a total of 264,000 addresses are eligible for the airdrop, including:
1. those who have made transfers on Optimism before June 23, 2021,
2. users who have used the protocol on Optimism in 4 separate weeks within the past year,
3. users who are actively involved in protocol governance on Ethereum,
4. multi-signature wallet signatories who have performed more than 10 transfers,
5. users who have made on-chain donations on Gitcoin,
6. and users who have used cross-chain bridges to cross-chain assets from Ether to Polygon, Gnosis Chain Arbitrum, and Solana, with an average of 2,311 OPs per address airdrop, with a snapshot date of March 25.
14% of the remaining supply will be distributed in future airdrop rounds. Optimism has now published the airdrop inquiry page for OP Airdrop#1, which only supports users to check the airdrop status, and the specific airdrop release date is expected to be announced.
OpenSea Acquires NFT Marketplace Aggregator Gem, Gem May Still Issue Tokens
On April 25, OpenSea announced the acquisition of Gem, an NFT trading marketplace aggregator. After the acquisition is completed, Gem will continue to operate as an independent brand, and OpenSea will integrate Gem's functionality in the future. Gem reportedly allows users to buy NFT on multiple marketplaces through a single, low-cost transaction and is known for its easy collection of floor price sweeps and rarity-based collectible rankings.
In addition, Vasa, lead developer of NFT trading aggregator Gem, said on Discord that even if Gem is acquired by OpenSea, Gem's existing roadmap of token airdrops and rewards will remain intact and Gem will still operate as a separate brand and product.
Grayscale Investments Ready to Expand Its Crypto Offerings to Europe
On April 26, Bloomberg reported that Grayscale Investments CEO Michael Sonnenshein said the company is ready to expand its crypto product to Europe and is currently discussing with partners the timing of the launch and expansion regions. Grayscale also plans to conduct a series of pilot tests in different markets.
Market Updates
80% of Institutional Investors Believe Cryptocurrencies Will Overtake Traditional Investment Vehicles in 10 Years
A survey of about 5,000 institutional investors and 23,000 individual investors in 23 countries by cryptocurrency exchange Bitstamp found that 80 percent of institutional investors and 54 percent of retail investors believe cryptocurrencies will overtake traditional investment vehicles within a decade, Blockworks reported.
In addition, 77% of institutions and 69% of retail investors said they trust stocks, while 70% of institutions and 67% of retail investors said they trust cryptocurrencies. Some 80% of individuals and institutions in emerging countries say they trust cryptocurrencies, compared to 62% in developed countries.
The data also shows that retail and institutional investors trust DeFi investment vehicles, including stablecoins, NFTs and blockchain networks, by about 60%.
Walmart launches innovation unit to explore metaverse and Web3
On April 29, Walmart's e-commerce company, Flipkart India Pvt. has launched an internal innovation unit called Flipkart Labs to explore ways to expand into the metaverse and Web3. Web3 will have a profound impact on e-commerce solutions, said Naren Ravula, vice president of product strategy and deployment at Flipkart Labs, which will explore NFT, virtual immersive stores, and build collaborations with the web3 community and set standards for commerce in the virtual world.
Goldman Sachs Launches First Loan Service Backed by Bitcoin
On April 29, Bloomberg reported that Goldman Sachs Group launched its first loan service action482ked by Bitcoin, an important step in its efforts to accelerate Wall Street's acceptance of cryptocurrencies as a major U.S. bank.
A Goldman Sachs spokesperson described the service as supporting borrowers using Bitcoin as collateral to lend money, and said Goldman Sachs was interested in the deal because of its structure and 24-hour risk management.
The move comes after Goldman Sachs first traded Bitcoin options over-the-counter in March and formed a digital assets team.
Micro Strategy, Fidelity Plan to Allow Bitcoin in 401(k) Accounts
April 26 (Bloomberg) -- Fidelity Investments plans to allow investors to open Bitcoin accounts in their 401(k)s, and later this year, 23,000 companies using Fidelity to manage their retirement plans will have the option to add Bitcoin to their retirement savings menus, according to the Wall Street Journal. And later, Micro Strategy CEO Michael Saylor tweeted that it will work with Fidelity Digital Assets on plans to offer employees the option to invest in Bitcoin as part of their 401(k) portfolios.
It is reported that the U.S. 401(k) system is a retirement benefit system provided by U.S. companies for employees, allowing employers to establish a tax-deferred pension savings plan for employees, and this pension can be invested in funds, stocks and other investments.
PayPal CEO: Company to Double Down on Digital Wallet
Dan Schulman, president and CEO of payments giant PayPal, emphasized on Wednesday during the company's quarterly earnings call that digital wallets will play a key role in PayPal's future growth, according to The Block on April 28. Schulman said, "We need to double down on digital wallets, and we believe this is the future of the industry, it's the future of PayPal, it's at the core of who we are. In both PayPal and Venmo, we're working to make our digital wallets the center of consumers' daily financial lives."
Schulman cited several statistics to justify the importance of the data wallet business: more than 50 percent of PayPal users use the company's digital wallet, customers who use it transact 25 percent more at checkout than those who don't, and more than 70 percent of Buy Now Pay Later ("BNPL") users are completed through the company's digital wallet.
In addition, according to Schulman, the churn rate for digital wallets, or the rate at which customers stop using a particular service, is 25 percent lower than for PayPal's other customer segments.
Asset Management Giant BlackRock Launches First Blockchain-Focused ETF "IBLC"
On April 27, Bloomberg reported that asset management giant ($10 trillion in assets under management) BlackRock Inc. is launching its first blockchain-focused ETF, "The iShares Blockchain and Tech ETF."
IBLC is the first crypto-focused fund from BlackRock, the world's largest issuer of exchange-traded funds.
CME Announces Cryptocurrency Reference Rates and Real-Time Indices Online
On April 26, the Chicago Mercantile Exchange announced that 11 new regulated, non-tradable CME CF cryptocurrency reference rates and real-time indices are now live, according to the official Twitter feed. The indices were developed in partnership with CF Benchmarks and are designed to bring greater transparency to cryptocurrency trading.
Lianhe Zaobao: Web3 can achieve a global integrated economy
Lianhe Zaobao, the largest Singaporean Chinese-language newspaper, published an article on April 29, which takes the recent international situation and the change from Web1 to Web3 as the starting point, and explains that the Internet in the Web3 era has an independent identity layer, comes with its own financial function and has a native currency on the Internet, and the behavioral data and social relationships of users are no longer exclusive to one platform. In addition, the article suggests that Web3 technologies are no longer exclusive to one platform.
In addition, the article suggests that the emergence of Web3 technologies will bring breakthrough changes to the economy and finance, science and technology, social relationships and information flow, capital markets, and human resources, and that countries such as the United States, the United Kingdom, France, and Japan are now actively embracing Web3 at the policy-making level. "We are optimistic that Web3 will eventually lead to a more open and sustainable globally integrated economy," as stated in the article.
Global Headlines
Central African Republic President Officially Authorizes Bitcoin as Fiat Currency
On April 28, the Central African Republic legally recognized the use of cryptocurrencies after its president approved a law passed by deputies last week that also made Bitcoin the African country's official currency alongside the West African CFA franc, according to the Associated Press.
President Faustin Archange Touadera validated the law on Wednesday, saying the exchange rate between cryptocurrencies and the Foreign Currency Fluctuation Account (FCFA) is freely determined by the market. Tax contributions can also be paid in cryptocurrencies through government-approved platforms, the government statement said, adding that the Central African Republic is now the first country in Africa to adopt Bitcoin as a reference currency. Many officials and civil society groups have protested the law, saying it would jeopardize national sovereignty.
The news comes after the Central African Republic's National Assembly has unanimously passed a bill to become the first country in Africa to adopt Bitcoin as a payment currency. Herve Ndoba, the Central African Republic's finance minister, said the crypto-related bill previously passed by the National Assembly also includes the creation of a dedicated regulatory body.
Cambodia: Ban on issuing, circulating and trading cryptocurrencies
The Cambodian government has not changed its policy of banning the use of cryptocurrencies, despite the rapid development of financial technology and its increasingly significant impact on the global economy in recent years, according to a document released by the Cambodian Ministry of Finance and Economy on April 27.
According to the Ministry of Finance and Economics, the National Bank of Cambodia, the Securities Commission and the National Police Authority had jointly issued a statement prohibiting any activity of issuing, circulating and trading cryptocurrencies in Cambodia. To date, the Cambodian government has not issued a business license to any cryptocurrency company, so any issuance, circulation or trading of cryptocurrencies in Cambodia is illegal.
Currently, Cambodia's Fintech Development Policy is being drafted. According to the Ministry of Finance, this is to ensure that Cambodia can benefit from the rapid development of fintech and minimize risks.
Brazil Senate Passes Bill to Regulate Cryptocurrency Market
The Brazilian Senate has passed a bill to regulate the country's cryptocurrency market, reports Gronk. The bill, which sets out the basic rules for digital currency funds and their daily use, has now been sent to the Chamber of Deputies and, if passed, President Bosonaro will consider signing it into law.
Argentine Capital Plans to Allow Citizens to Pay Taxes Using Cryptocurrencies
On April 26, Horacio Larreta, head of government in the Argentine capital Buenos Aires, confirmed that the city will allow its citizens to pay some taxes using cryptocurrencies. This is part of the city's digital plan, named "Buenos Aires+", which aims to simplify the relationship between the city and its citizens.
National Bureau of Economic Research: El Salvador's Bitcoin Adoption Experiment Failed
On April 26, U.Today reported that according to a new study released by the National Bureau of Economic Research (NBER), El Salvador's Bitcoin adoption experiment has failed.
The NBER survey shows that more than 60 percent of respondents abandoned the government's Chivo wallet after using a $30 bonus. 89 percent of Salvadorans have never received a money transfer with the help of the app (only 3 percent of respondents received Bitcoin). 99 percent of respondents have never paid taxes in Bitcoin. In addition, the survey shows that, in addition, most Salvadorans have never used the Chivo ATMs installed across the country.
Salvadoran President Nayib Bukele had previously been posting Bitcoin-related tweets, and now only posts gang-related content, according to the report.
French President Macron: I want to build a "European metaverse"
On April 25, according to The Block, French President Macron said in an interview that he does not want Europeans to be left behind in the development of web3 and metaverse, saying, "I want Europe to be a core player. I want to make sure in particular that European players master the underlying technologies related to web3 and the metaverse, rather than being dependent on American or Chinese giants."
He also added that European cultural institutions should develop NFT policies. Addressing the regulatory level, Macron described a promising regulatory future in which a unified European financial sector would take a pragmatic approach, instill confidence and encourage innovation. "France will pay close attention to the fact that regulation will not hinder innovation and will remain as neutral as possible towards technology," adding that, "we should also act more quickly on the digital euro."
Macron was reported to have won the second round of the French presidential election earlier in the day, defeating right-wing candidate Marine Le Pen for a second term as French president.
Nepalese Regulator Reaffirms Crypto Activities Illegal
On April 28, Nepal's tech industry regulator, Nepal Telecommunication Authority (NTA), reiterated that cryptocurrency investment and trading activities in the country are illegal, according to Bitcoin.com. NTA said, "Operating websites and apps related to cryptocurrencies is prohibited. Investment and trading in cryptocurrencies is a criminal activity, so if anyone is found to be or has been engaged in such activities, we will take action in accordance with the existing laws."
In previous news, Nepal's central bank announced a total ban on Bitcoin in August 2017.
Gate.io Weekly Blogs:
Proof of Work v Proof of Stake.
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The Five Most Popular Crypto Wallet Types
The Whole Story of Musks Acquisition of Twitter
Deciphering Difficulty Bomb In Ethereum Mining
Author: Byron. B & Charles. F & Peter. L (Gate.io Researchers)
* The article only represents the researcher’s views and does not constitute any investment advice.
* Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.
