What the FED Said, WTF did China Just Do, Altcoin TA & The Latest News
In This Issue
- I share my thoughts on the state of the market, what the FED said, WTF did China just do, Matic pump watch, Aptos Insanity, Polkadot development, ImmutableX gaming passports and Arbitrum Nova airdrop.
- REKT has a TA report on 6 altcoins.
- Rebecca breaks down the latest news.
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What’s On My Mind by Lark
The State of the Market
Things are still looking juicy in the market. Bitcoin and Ethereum both moved higher on positive news from the FED. Altcoins broadly speaking continue to see large returns coming in for investors. Some coins in the top 100 have pumped by 10-20% today. Feels like some kind of mini altcoin season happening. And I like it.
The markets pumped so much that famous bear Michael Burry who on Tuesday tweeted sell has now deleted his Twitter account… again…
What The FED Said
Here are the key takeaways from the FED meeting.
- The FED raised rates by 0.25%. This is exactly what was expected. Markets liked this. Stocks and crypto both rallied.
- Inflation is still too high, but we are going in the right direction.
- The FED could either stop short of or go past 5.1%. LOL, ok… But, seriously, this is about the next inflation reading I bet. If inflation keeps falling at the rate it has been then perhaps the FED will stop short of 5.1%, but if the rate of decline slows then 5.1% may not be the terminal rate.
- The expectation is that 5-5.25% will be the terminal rate. Meaning rate hikes could finish by April or May.
BTW, what would Satoshi think about all of this? Everyone sitting around waiting for Central Bankers to tell us what is happening to the money. 🙃
WTF Did China Just Do?
Apparently, China has started to implement a 20% tax on crypto investors and Bitcoin miners in China. Which is a big announcement. Remember, Bitcoin mining is supposed to be banned, but China has utterly failed to stop it. Crypto, while not banned per se, is massively restricted, and again they have totally failed to stop it.
Is this China finally admitting defeat and saying if we can’t stop then let’s just tax it? If so, that is huge! Chinese investors flooding back into crypto would bring an incredible surge of liquidity.
Matic Pump Watch
Something to keep an eye on for a possible “buy the rumor, sell the news” play to Polygon’s zkEVM launch. It is still thought that Polygon’s new Ethereum layer two scaling solution zkEVM will launch in Q1. If so then that means we should see this announced any day now. The announcement of which could cause a price spike which could see a rally into the launch form up. Likely followed, as we so often see, by a sell off post launch. zkEVM will be using matic for governance, but not paying gas fees which will be denominated in ETH. So in terms of fundamental impact it remains to be seen how important this will be long term. But it is an event that I could foresee speculators piling into.
Disclaimer, this might not play out, and prevailing market conditions may deny such a scenario.
Aptos Insanity
The price of Aptos has gone parabolic in recent weeks. But why? Well, a few reasons have been posited. First, a very tight supply means that the coin can pump with relatively little spot buying volume coming in. Second, Korea. Aptos has been making a big push into Korea to try and fill the Terra vacuum. Volumes on the South Korean exchange Upbit have been HUGE for APT. While some are pointing to a growing NFT scene on Aptos, right now there are only 20,000 daily users of the chain. Also, transactions per second right now are around 60, a far cry from the 160,000 potential promised by the team. The hype is real, crypto speculators do love new chains, and everyone wants to find the next Solana. But right now, Aptos feels overhyped compared to the fundamentals.
Besides, Aptos was sooooo… last week. This week everyone is FOMOing over Canto. You can read Jesse’s report on it HERE. While the Canto coin itself is up, the NFT scene is really popping on Canto now. Plus, there are some hot yield farms. Canto is the shiny new toy, but it has a lot of work to do to be considered “the next big thing”.
Polkadot Development
According to a recent report from Santiment, Polkadot is #1 in terms of github commits in the last 30 days. #2, was Polkadot’s little brother Kusama. The bear market has been rough on Polkadot, but a lot of development continues on the chain. Major projects like Parallel Finance and Moonbeam keep developing. Builders keep building during the bear market, the challenge now is to get users to show up in a big way on Polkadot.
ImmutableX Gaming Passports
The team at IMX has announced gaming passports which are intended to be an all in one way for gaming studios to onboard into web3. Such a passport would lower the barriers to entry for gamers, make gaming a more ready to go experience versus the awkward experience it is now for crypto gaming. It will allow for things like frictionless purchases, easier marketplace access, seamless onboarding, and better scalability. Now IMX just needs to get some big partners to make this a success.
Abritrum Nova Airdrop
Arbitrum Nova is an Ethereum layer two scaling solution, built by the already popular layer two scaling solution Arbitrum. And you might think, wait, WTF, why are they launching a second layer two??? Well, Nova is purpose built for gaming, social networks (Reddit’s community points live on Nova) and NFT applications (Opensea just added support). Will there be a Nova airdrop? Or will Nova users get ARB tokens when tha Arbitrum drop finally happens? Unclear. BUT, here are some actions that could make you eligible if it does happen.
First, Bridge some ETH over to Nova. https://bridge.arbitrum.io/
Second, use some Nova dapps.
- Arbswap is a decentralized exchange. https://arbswap.io/ (you may also consider doing a swap on Sushiswap which supports Nova)
- Tofu NFT is an NFT market place https://tofunft.com/arbi-nova (although you might want to stick with higher quality and just use Opensea on Nova)
Usual airdrop disclaimer. You might get nothing. What you get may be worth nothing. Caution is always advised when interacting with DeFi contracts. You will likely want to do all of the above actions multiple times, for example once every week to be eligible. This is not an endorsement to buy any coins or NFTs of the projects listed.
Market Analysis by Rekt Capital
In today’s newsletter, I will cover 6 Altcoins, specifically:
- Zilliqa (ZIL)
- Arweave (AR/USDT)
- Cardano (ADA)
- Cosmos (ATOM)
- Dusk Network (DUSK)
- Polygon (MATIC)
Let’s dive in.
Zilliqa — ZIL/USD
Historically, whenever ZIL has reached the blue support area, price would consolidate there for months before performing a breakout.
This time around however, ZIL has skipped that multi-month consolidation phase and broken out after only several weeks spent there.
Moreover, there were no upside wicks printed beyond the blue demand area and in fact a Monthly Close beyond this area happened.
The last time ZIL performed a Monthly Close beyond the blue area like this was in late 2020 which kickstarted a new uptrend.
Technically, ZIL could dip into the blue area to retest it as support once again, but history suggests that ZIL could take off without a dip, as in late 2020 ZIL didn’t need any retest post-breakout from the blue area.
Generally though, retest or no retest, ZIL looks to be positioning itself for a move to the green resistance above at $0.44 over time.
Arweave — AR/USDT
As a preface, here is my analysis on AR from January 13th:
Here was an update showcasing the next step after reclaiming the pattern:
And here is today’s update:
AR has successfully Weekly Closed inside the green resistance area and turned the bottom of this box into a new support to launch it into trend continuation.
Since reclaiming the bottom of this red structure, AR has rallied almost +40% in total.
To confirm further upside beyond this point, AR would need to retest the top of the green box into support.
A Weekly Close above the green box top would be a good confirmation signal for that.
After Weekly Close, a retest of the top of the box would be even greater confirmation which would enable that final rally to the top of the red wedge.
Upside wicks beyond the red wedge have occurred before so upon revisit of the pattern highs, I would expect some upside volatility.
But for AR to breakout from the red wedge, a Weekly Close beyond the red diagonal resistance would be necessary.
But that’s a conversation for another day.
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In Case You Missed It by Rebecca
Crypto market news
Crypto funds saw inflows of $117M in the last week, the highest since July 2022. Source
Elon Musk wants a Twitter payments system to accommodate fiat first then maybe cryptocurrencies in the future. Source
DCG-owned crypto exchange Luno is cutting 35% of its workforce, which is over 330 jobs. Source
Visa’s CEO thinks stablecoins and CBDCs have the “potential to play a meaningful role in the payments space” as explained at its annual shareholder meeting. Source
Regulated Swiss non-custodial Bitcoin app Relai has announced the launch of a new OTC service for business clients. Source
Anthony Scaramucci thinks the bull market will return once inflation lowers to 4-5%, as that’s when the Fed is likely to stop rate hikes. Source
The US SEC has rejected the Ark 21 Shares application for a Bitcoin ETF for the second time. Source
BitPay and MoonPay have partnered up to give BitPay users more ways to buy crypto and at better rates. Source
Marathon Digital Holdings is forming a joint venture with FS Innovation to set up mining operations in Abu Dhabi. Source
Amazon is planning to launch a digital assets company and NFT marketplace in Spring 2023 and is currently in development. Source
Bankrupt Core Scientific has filed an emergency motion to sell Bitmain coupons worth $6.6M. Source
The British Premier League has partnered with digital trading card company Sorare to expand its NFT offerings. Source
Coinbase is adding new features to its wallet to increase security for users after NFT scams. Source
Coins and Projects
The Bitcoin stochastic indicator is already predicting a $200K top for BTC and a new floor price of $70K in the next market cycle. Source
Bitcoin premium has hit 60% in Nigeria as demand increases after ATM cash withdrawals have been reduced, as the country gears up for its CBDC transition. Source
Strike has partnered with Clover to integrate Bitcoin Lightning payments into its point-of-sale terminals. Source
Strike has expanded Bitcoin Lightning Network remittance payments to the Philippines. Source
The UK-native stablecoin, GBPT, has been integrated into 18,000 ATMs worldwide through a partnership between Poundtoken and BitcoinPoint. Source
Ethereum’s public withdrawal testnet is set to launch on 1 February. Source
Pudgy Penguins has announced its using Layer-0 to allow cross-chain transactions and has added support for Polygon, BNB Smart Chain, and Arbitrum. Source
Arbitrum DEX, Vela, will be launching in beta at the beginning of February. Source
Arbitrum’s upcoming decentralized perpetual futures exchange, Vest, has closed a seed round for an undisclosed amount. Source
Uniswap DAO has voted to select Wormhole as its single crypto bridge provider for the proposed V3 launch on BNB Chain. Source
Lido has presented a proposed design for ETH withdrawals from its liquid staking protocol post-Shanghai upgrade. Source
Polygon has launched its first non-custodial wallet with no-seed phrase vulnerability thanks to ZenGo. Source
Cardano project, World Mobile, is developing a sidechain to bridge Cardano and Cosmos ecosystems. Source
Binance has partnered with Mastercard to launch a prepaid crypto card in Brazil allowing customers to make payments and pay bills with 13 cryptocurrencies. Source
Aave V3 has launched on Ethereum and will support seven tokens including USDC and DAI. Source
Injective has launched a $150M ecosystem fund to support developers building on the Cosmos network backed by VCs and Web3 firms including Pantera Capital. Source
Cardano has launched its decentralized stablecoin called Djed. Source
Marinade Finance has announced an incentive rewards program to boost liquid staking on Solana. Source
Web3 gaming studio Mythical Games has released V2 of its Mythical Marketplace. Source
Ethereum NFT collection Doodles has announced its upcoming Doodles 2 project will launch on Flow. Source
DYdX has pushed back its $156M token unlock from February to December. Source
Fantom plans to introduce V2 of its fUSD stablecoin to provide a cheaper and more predictable system for builders, partners, and users. Source
California DMV is to digitize its car title management system using Tezos blockchain and plans to use NFTs to digitize car deeds. Source
TRON is in the process of becoming legal tender in the Caribbean Island of St. Maarten. Source
Justin Sun wants to get TRON adopted as legal tender in 5 countries this year. Source
Squid, an Axelar-based DeFi liquidity protocol, has raised $3.5M in a seed round led by North Island Ventures. Source
The Sandbox has a token unlock scheduled for February 14 which will release 12% of the token’s supply. Source
Macro news
The US economy saw GDP grow by 2.9% in December above the 2.8% expectation. Source
The US Biden administration has announced its plans to launch a new legal framework for cryptocurrencies in the coming months to protect investors from fraud. Source
The Bank of Canada has signaled the end of its interest rate hike cycle, after making one final increase of 25 basis points. Source
The EU has passed a bill that allows banks to hold the euro equivalent of their crypto investments. Source
The IMF has downgraded its UK growth forecast, predicting it will be the only G7 country to decline this year. Source
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Final Notes
If you’re looking for more content, make sure to check out my latest YouTube video: Surprising Truth Behind Bitcoin’s Powerful Monthly Close!
Thank you so much for your support, and I truly hope that today’s issue will give you insights needed to help you master your wealth.
If you are reading this it means you are on the free version of the Wealth Mastery Investor Report, which is great for news and tips on the crypto markets.
If you really want to take advantage of fastest growing asset class EVER, I highly recommend you join us in the Premium Investor Report.
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See you next time!
Lark and the Wealth Mastery Team
Legal Disclaimer
TCL Publishing ltd (director Lark Davis, owner of Wealth Mastery) is not providing you individually tailored investment advice. Nor is TCL Publishing registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. TCL Publishing is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.
You can find a full disclosure of all my crypto & venture investments here.