Chung's Weekly Digest (9/5)

Crunch Time

Bitcoin ($BTC) continues to stay above the crucial $20k as addresses with more than 1 $BTC surged past 900,000 an all-time high, signaling a return in retail confidence.

There are a few important dates that can be potentially market moving in the coming weeks:

• The Merge is expected to take place between September 10 to 20
• The US Department of Labor will release its monthly Consumer Price Index (CPI) on September 13
• The Federal Open Market Committee (FOMC) will be releasing its decision on interest rates on September 21
• Cardano’s ($ADA) Vasil hard fork upgrade is scheduled for mainnet on September 22

If inflation has cooled down, the market can expect some exuberance for the rest of the month. The FOMC’s decision on interest rate hikes will be guided by August’s CPI data. Market participants have been holding back, resulting in a lack of liquidity that prevents any substantial market movement.

However, the crypto market is showing signs that a reversal is taking place. Traditionally the year-end has always been bullish for cryptos in general.

Weekly Recap

• The Fed gave more directions on crypto to Financial Institutions.
• OptiFi Labs loses $661k after a careless accident.
• Digital asset custodian, Cobo now supports Cronos Chain.
• Crypto.com sends a woman AUD10.5 million by accident.
• Sunflower Land CEO releases developer’s diary to help builders.
• Singapore to tighten grip on retail investors.
• New forum of top tech minds to boost web3 in India.
• Crypto.com drops Champions League sponsorship.
• Axie Infinity community meets in Barcelona.
• Merit Circle DAO to co-launch a new MMO game.
• Mad Meerkat bridges to Cronos Chain.
• Iran adopts cryptocurrencies for imports.
• CZ dispels rumors of ‘Chinese Company’ by media and rivals.
• FIFA and Formula 1 are set to launch NFT projects.

Market Sentiment

Russia’s Central Bank just allowed Bitcoin to be used for international trade and settlement.

Many observers are trying to find indications of a market bottom. This exercise might not be a fruitful endeavor. The current price dip is not a result of a normal market cycle. It is a combination of a few factors that affect the global equity market.

Unless these uncertainties have been factored in, the market will remain volatile and jittery. The primary concern today is inflation and how the Fed can contain it. Raising interest rates is not a long-term solution.

An increase in trading volume is an indication of increased market activity. It can be interpreted as a sign that interest has returned to the crypto market.

Coins to Watch

• Ethereum ($ETH) - Ethereum will likely show some volatility as it nears the biggest upgrade in its history.
• Interest will spike before and after the Merge, and investors must be extremely cautious because there are many price speculations.
• A successful merge, which can be reasonably expected, will be beneficial to the Ethereum network in the long run. Institutional investors might go on a buying spree for a long-term outlook as the uncertainties surrounding the Merge have been resolved.
• Cardano ($ADA) - the seventh largest crypto asset by market cap, is scheduled to undergo the most significant update to date.
• The Vasil update will increase network capacity and bring down transaction costs.
• The enthusiasm surrounding this major upgrade has helped $ADA’s price surge.
• Cardano’s price has appreciated more than 15% in the last seven days. There will be more speculation by short-term traders looking to make some quick gains.