🐻 Rumour has it that bears hibernate in October. Certainly, we have started the month on a strong green note.
5️⃣ Top 5 Crypto Market Headlines
📈 Technical Analysis: BTC, SOL, AVAX
💳 Visa Bullish on CBDC’s
📅 Looking ahead to October…
🎧 Our very special Podcast: Avalanche, Benqi and the Future of DeFi with JD Gagnon
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Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.
Bitcoin doesn’t want to stop climbing, it seems. Really nice monthly opening.
Long term market structure: bearish, short term market structure: still bearish, medium term: a bit more bullish with this recent pump showing potential to invalidate the structure.
Let’s aim for a close above the $45k level. The main resistance levels thereafter are $48k and $50k.
$50k is the level to reclaim to confidently say that the market structure has shifted.
Broken a key resistance level. Huge potential. Currently 3rd in terms of 24 hour volume.
The key $150 level has been broken, let’s see if we close above it on the one day.
We see an aggressive entry here, targeting $170 and a more conservative potential entry once the $170 level has been reclaimed.
Strong trend. Key level at $70.
Fantastic opportunity above this level. Continuation to $80 seems likely thereafter.
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🔷Visa Bullish on CBDC’s
Visa has entered the interoperability arena with the introduction of a project to address one of the biggest problems in the industry. The payment giant’s Universal Payment Channels (UPC) aims to be a “universal adapter” among blockchains by enabling banks, businesses, and consumers to easily exchange value, regardless of currency.
In the announcement made yesterday, Visa highlighted the role its platform aspires to play in relation to Central Bank Digital Currencies (CBDC). Visa cited the rising interest of central banks in digital money as a primary motivation for the development of UPC.
Research began in 2018, focusing on developing a framework to facilitate interoperability across different networks independently of the underlying blockchain mechanisms.
UPC will also improve transaction speeds for some digital currencies. Modern payment networks can handle significantly more transactions per second (tens of thousands) than some large networks like Ethereum and Bitcoin.
Visa’s development of its UPC has wide-ranging implications. It appears that the focus on CBDC’s, and some privatized stablecoins, is the reason behind the research. And justifiably so; seamlessly transferring money across borders is a major step for world finance. This area also provides the safest bet for Visa, considering countries like China, Sweden and the Bahamas are clearly advancing down the CBDC path. UPC’s focus may be aligned with central banks, but its development also lays the groundwork for merchants to more easily accept different cryptocurrencies as payment.
By making it logistically easier for businesses to accept crypto, Visa could be doing its part usher in the age of coins over cash.
Keen on the details? Visa’s Universal Payment Channels whitepaper offers a deep dive into the technicals.
🏠 Fading FUD
A few short days ago, it appeared the only avenue for BTC and the entire market was down, down, down. News of Evergrande defaulting on their debts, the perfectly timed China ban on any crypto transaction, the dysfunctional US government possibly defaulting on their debt, there appeared to be a perfect trifecta of bad news! But as perfect as it was for the bears, it seems to be fading, hopefully revealing clear blue-green skies ahead.
So what lies ahead for the 4th quarter?
There is an expectation the SEC will FINALLY approve a BTC ETF before year-end. This will most likely be a futures ETF and not backed by actual bitcoin, but this could be the first step.
When interviewed by the Senate yesterday, Jerome Powell Chairman of the Federal Reserve, backtracked his previous statement about ‘not needing cryptocurrencies.’ The Senator also asked Powell if he had any intentions to ban crypto, to which Powell responded ‘NO’.
A bill going to the Illinois State Senate will allow banks in Illinois to hold BTC and other cryptocurrencies, leveraging FDIC insurance to make participants feel safer.
Social Media giants like Twitter and Tik-Tok are jumping into NFTs.
US politicians did come to an agreement, with only a moment to spare, so what was the basis for all of the FUD we have been hearing? Although the China ban, Evergrande & US defaults were serious matters, you will have to decide if you believe crypto news is strategically released or merely coincidental. If you don’t want to leave it to chance, stay tuned to the Market Meditations newsletters and discord to see which protocols have big upgrades and updates also occurring in the 4th quarter!
🎧 Avalanche, Benqi and the Future of DeFi with JD Gagnon
JD Gagnon is co-founder of DeFi developer, Rome Blockchain Labs and lending protocol Benqi.
Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.
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