BigONE’s Weekly Recap
Bitcoin heading to 36K, analysis says amid warning global stocks ‘look expensive’
A cataclysmic breakdown in global equities is not off the table for this year, with a “stagflationary shock” already in the making. Economists cut their growth forecasts & raise inflation projections. Some established pundits, however, held a decidedly different stance. In its latest crypto market outlook report on March 4, Bloomberg Intelligence remained bullish on Bitcoin and Ether (ETH). “Most assets are subject to the ebbing tide in 2022, on the inevitable reversion of the highest inflation in four decades, but this year may mark another milestone for Bitcoin,” it read. If the price fails to break above $40k, we go down to support.
Crypto industry seeks to educate, influence US lawmakers as it faces increasing regulation
Much like other activity in the digital asset space, crypto lobbying has been picking up during the past year. Ripple Labs, in second place, spent $900,000. The National Football League spent $600,000 lobbying Congress, the U.S. Securities and Exchange Commission and other government agencies in 2021 with the goal of determining “whether crypto can be an integral part of the League’s business,” according to CNBC sources. The American Blockchain PAC was founded in November with the goal of raising $300 million for pro-crypto candidates.
Whales’ stablecoin buying power grew over 7% in one month: Here’s what it means
Whales with USDT holdings of $10,000 to $10 million added $1.06 billion worth of Tether to their wallets over the past month, increasing their buying power by 7%. According to data from Santiment, stablecoin whales with wallet holdings of 10,000 to 10 million Tether (USDT) have accumulated over $1 billion in buying power in the past month. Buying power is defined as the capacity of stablecoins to buy Bitcoin and thereby driving its price higher. The significant accumulation of stablecoins by whales indicates they are waiting to buy BTC at a lower price, showing a bullish outlook for the market. The outflow of BTC from exchanges also supports this sentiment. However, the price momentum is quite similar to the first half of 2021, where gold outshined BTC for the first two quarters while BTC maintained a close correlation with the equity market.
No credit for crypto — users react to Russia-issued credit card ban
“Visa and Mastercard dig their own graves by politicizing their products and pushing people all over the world toward Bitcoin,” said Marty Bent. On Saturday, Visa, Mastercard, and PayPal announced they would be suspending operations in Russia following the country’s military actions in Ukraine. However, Russia’s central bank issued a statement on Sunday saying both Mastercard and Visa cards would “continue to operate in Russia as usual until their expiration date,” with users able to use ATMs and make payments. Though the companies did not provide an exact timeline on when operations would cease entirely, at least one cryptocurrency exchange warned users of the change, which is likely to affect many Russian users. While cutting off Visa and Mastercard is a seeminglysignificant blow to Russia and its residents, reports suggest the country may turn to Chinese payment systems like UnionPay — accepted by peer-to-peer cryptocurrency exchange Paxful.
Ethereum’s TVL dominance drops to 55% as Bloomberg analyst paints $1.7K bearish target
Ethereum price has been increasingly in lockstep with the Nasdaq, but there’s a catch. The share of the total value locked (TVL) on the Ethereum network declined below 55%, its lowest level on record, from 97% at the start of 2021, according to data from DeFi Llama. In many cases, the EVM has already cemented itself through its network effects.” Avalanche price dropped by 37% in the same period. “Bitcoin and Ethereum remain in early adoption days, with increasing demand vs. declining supply and related price implications,” explained McGlone, adding: “Our bias is why complicate it — unless something unlikely reverses the proliferation of the nascent technology, prices should rise.” “Closer to 3x now, the relative risk of the nascent technology/asset is poised to keep falling, particularly if the war increases recession risks and stock market volatility,” he asserted.
