🧘♂️What To Know About Bitcoin
Market Meditations | May 20, 2022
Recent market events have highlighted the need for the transparency of stablecoins.
Not without their own long-standing FUD, Tether is attempting to become more transparent and ease the minds of market participants, a good move if they don’t want to experience their own bank run. Learn more about it in this newsletter.
Price action has also been rocky. So we are also sharing our updated Bitcoin technical analysis.
- Bitcoin Technical Analysis
- FTX US Explores Stocks
- Important Tether Updates
⏰ Top Headlines
- The Fall of Terra: A Timeline of the Meteoric Rise and Crash of UST and LUNA
- Do Kwon amends Terra 2.0 proposal during the vote on it
- Luxury watchmaker TAG Heuer inks deal with BitPay to accept crypto online in the US
- Cardano accelerator program Genius X ISPO nets $105 million in ADA
? Can You BT-See Clearly?
Macro Structure: Downtrend continues. The most important thing to look out for is a break from the $28k level support. If we lose this support, we can expect an aggressive downside with no other clear support in sight.
Key Support: $28k.
Key Resistance: $40k with a soft resistance at $31k.
Looking Forward: Safe to assume the downtrend continues. That being said, three very important points line up: 100 Day Moving Average, psychological $40k level, and 0.618 retracement. Therefore, seeming some pullback or retracement towards that level is also possible.
FTX has been our cryptocurrency exchange of choice for years.
We’re also able to give you the biggest discount FTX has to offer.
? Taking Stock
The coexistence of stonks and crypto saw a good move yesterday with an announcement coming from a major exchange.
- FTX US revealed the launch of FTX Stocks, a conventional stock trading service being offered through its trading app.
- The stock trading arm will offer trading and investing in hundreds of exchange listings like common stocks and exchange-traded funds (ETFs).
- FTX Stocks comes as a first in the industry, allowing users to fund accounts with fiat-backed stablecoins like USDC and USDT.
- With the addition of socks, FTX US has “created a single integrated platform for retail investors to easily trade crypto, NFTs, and traditional stock offerings through a transparent and intuitive user interface”, said FTX US president Brett Harrison.
- Sam Bankman-Fried, the founder of FTX and current CEO, recently bought shares to the tune of $650 million of the stock trading app Robinhood, implying a favorable philosophical approach to stonks.
It’s been a slow process to integrate cryptocurrencies into stock trading platforms, but the movement has been slow and steady. Now that we have major crypto exchanges reaching back across the aisle, seamless trading experiences may come in half the time.
? Is USDT Tethered to FUD?
Tether just released their Quarterly Assurance Opinion, demonstrating that they have the appropriate reserves and showing that their consolidated assets are greater than their liabilities. According to the report:
- They have reduced commercial paper holdings by 17% over the prior quarter from $24.2B to $20.1B.
- They continued this reduction by reducing commercial paper holdings by another 20% since April 1st which will be reflected in their Q2 report.
- Secured loans have been reduced by $1B.
- They have increased their balance of US Treasury Bills by 13% from $34.5B to $39.2B.
- The average rating of the commercial paper that they hold has gone from A-2 to A-1.
- This assurance opinion was reviewed and attested to by the independent accountants MHA Cayman, reaffirming the accuracy of the Consolidated Reserves Report.
Unlike Circle (the company behind USDC) Tether is not a US-traded company and therefore is not held to the requirements of the SEC, something that gives some investors reassurance about the health of a company and its balance sheet. Annual reports, audits, disclosures, and SEC filings are one reason that USDC is not questioned as often as USDT.
Tether has long been under fire by the market with claims that it did not have the appropriate reserves to redeem every USDT in issuance for $1. They began releasing reports and third-party attestations in an effort to change market perspective.
- Watch our How to Get Rich Trading Crypto Course if you struggled with today’s technical section.
- Consider signing up for FTX if you’re an investor or trader looking for a top cryptocurrency exchange. Use our link to get a 10% discount.
- Read the following Technical Analysis guides for more insight:
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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