Bitcoin Changes Everything - Chung's Weekly Digest (5/8)

Early Internet 

Bitcoin ($BTC) failed to stay above $40k and capitulated to a 24-hour low of $34,413. Bitcoin is about to chart a 6th consecutive red weekly candle which last took place in May 2014. 

Despite institution support and increased adoption, Bitcoin is finding it hard to sustain its price as fears continue to loom as fear of rising inflation continues to grip the equity market. The next Consumer Price Index (CPI) is scheduled to be released on May 11. 

The US Federal Reserve (Fed) will have to increase the interest rate if the CPI reading is unfavorable. According to Google Trends, the volume of searches for Bitcoin has waned, an indication of the overall retail sentiment. 

Popular podcaster, Joe Rogan, recently spoke about Bitcoin in his conversation with Khalil Rountree and he said:

“I think of Bitcoin the same way I think of the early internet. They [the government] didn’t see it coming and now it’s a viable form of currency–you can actually buy things with it.”

The common perception about Bitcoin and blockchain technology is changing fast. Bitcoin is no longer seen as a get-rich-quick scheme as it gains mainstream adoption. Retail investors might be less enthusiastic about Bitcoin as an investment that is capable of providing manifold returns. 

The Bitcoin network has real-world utility today. It can be used to facilitate payment in a fast and secure manner. Institutions are snapping up Bitcoins on exchanges because it is an inflation hedge and it is becoming a recognized class of asset. 

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Weekly Recap

• Star Atlas is partnering with The Sandbox to revolutionize GameFi interoperability. 
• Crypto.com makes big changes to its Visa card rewards. 
• Solana suffers yet another outage. 
• Ethereum testnet is live on Ankr protocol. 
• Magic Eden releases two updates for its mobile application. 
• Argo gets listed on CMC and CoinGecko. 
• Crypto.com’s CEO revises its credit card staking rates. 
• Binance obtains its license to operate in France. 
• Magic Eden launches self-service NFT auctions. 
• Binance invests $500 million to support Elon Musk’s Twitter purchase. 
• Cronos Research will expand its services to include the Evmos chain.
• BNB Chain’s NFTs continue to push forward through various initiatives. 
• BabyDogeCoin’s NFT donations reach $400k. 
• CRO Homes launches $RENT tokens. 
• Binance and Trust Wallet back Argentina’s football team. 
• SEC bolsters crypto-focussed enforcement unit. 
• Algorand is now FIFA’s official blockchain sponsor. 
• Crypto.com introduces Target Price Orders. 
• BNB Chain hires a new VP to supervise the marketing department. 
• Gucci to accept crypto as payment in selected stores. 
• Cronos announces the third wave of ecosystem grants. 

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Market Sentiment

The market sentiment continues to sink as it heads to a sixth consecutive weekly red candle. The crypto market appears to be under heaving selling pressure as retail investors abandon the market before the CPI announcement due on Wednesday, May 11. 

The current dump is likely caused by an illiquid weekend market and a relief rally is likely to take place. If the price of Bitcoin bounces, it will form a double-bottom which is a strong reversal signal. 

The crypto market is unsuitable for trading. However, investors that are making spot purchases are not exposed to risks of liquidation. The best strategy to adopt at the moment is to focus on blue-chip crypto assets that are massively discounted or to adopt the dollar-costs-averaging (DCA) method. 

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 Coins to Watch

• Bitcoin ($BTC) - Bitcoin is the safest bet in an uncertain market that is not showing a clear indication of recovery. 
• Bitcoin remains the least volatile crypto asset that an investor can invest in at the moment. 
• Altcoins will continue to suffer more losses compared to Bitcoin as the market continues to trend downwards. 
• Ethereum ($ETH) -  Ethereum remains the top crypto platform that is smart contract enabled. It has the largest community of developers building on its ecosystem. 

• Ethereum will be relying on its layer-2 solutions for scalability which is its main concern at the moment. 
• Unlike other smart contract platforms, Ethereum has a track record and the first-mover advantage over its competitors. 

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Come back next week for another iteration of Weekly Digest: Chung's Picks of the Week from BSC News. Be sure to follow Chung Yee on Twitter.

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