Despite the drawdown yesterday, BTC continues to hold onto the $28.8k level. According to Technical Analysis Wizards out there, this is an important level to hold in order to see continued strength. As much as we like to talk about fundamentals (yes, even in crypto), the market is mostly a human psychology barometer. Remember, the market is dictated by the marginal sellers and buyers. Even if you don't believe in the TA religion, enough people do that it often creates a self-fulfilling prophecy.
On the back of increased regulatory scrutiny here in the US, it was announced yesterday that Coinbase received its Bermuda regulatory license and plans to launch an offshore derivatives exchange that will offer perpetual futures as soon as next week. Crypto derivatives make up as much as 60% of all crypto trade volume, and are 80% of Binance's total trade volume alone.
There is clearly an appetite for crypto derivatives, and as the most trusted name in the space, Coinbase has a real opportunity to eat into its competitors' market share as long as it can execute. Nothing I say is financial advice, but in my personal opinion, this is bullish COIN stock.
In interplanetary spaceflight news, SpaceX's long-awaited Starship test launch resulted in a "rapid unscheduled disassembly before stage separation." I think that's fancy talk for "oops…it blew up." Mind you, this was a test flight and likely wasn't supposed to go perfectly smoothly. The team will take back their lessons learned from this with plans of a future test launch in the coming months.
What does this have to do with crypto? Haven't you learned, everything remotely related to Elon Musk has to do with crypto! In particular, the eighth largest cryptocurrency by market cap, DOGE. Unsurprisingly, DOGE is down -5% since the SpaceX blow up..err, I mean, the "rapid unscheduled disassembly before stage separation." Unlike DOGE, PEPE has no baggage from a future trillionaire. Bullish PEPE tbh.
To end on a serious note, in our Tuesday newsletter we brought up the recent exploit that has drained countless wallets for over 5000+ ETH, in addition to many other tokens and NFTs across mulitple chains. The exploit has yet to be figured out, but it has affected people in the industry with great understanding of wallet security.
Make sure to always use a hardware wallet and never store your seed phrase on your computer, phone, or on the cloud. Do not give a sketchy app permission to your main wallet, and always double check you are sending assets to the correct address. In an open source world, exploits will unfortunately continue to happen, and there are a lot of bad actors out there. Always stay diligent and never compromise on your wallet security.
- EffortCapital
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