Monday Market Report | Oct 31 - Nov 6, 2022
📢 Weekly TL;DR
• The US Economy gained 261K jobs in October--30% more than the expected 200K
• The Fed & the BoE, as expected, hiked rates by 75pbs each (0.75%)
• Stocks and Bonds: “Sooo… What do we do now?”
• New Bitcoin and Ether support levels held strong
• Printed 8-week Highs
• Elon tackled Twitter; Began Layoffs
• Doge *gasp* doubled. (Up an additional 50% 🤷)
📻 Crypto News
FUNDING:
• WalletConnect raises $12.5 million to build 'web3 communications network' – The Block
• Evmos, Connector of Cosmos and Ethereum, Raises $27M - CoinDesk
• MATIC Rally Gathers Speed as Meta Announces Polygon-Powered NFTs, Chart Signals Golden Cross - CoinDesk
INDUSTRY:
• DeFi advocates push back against FTX-backed crypto bill – The Block
• Bankruptcy top of mind as miners confront market downturn – The Block
LEGISLATIVE ENGAGEMENT:
• Project Cedar: NY Fed Launches Effort To Design Wholesale CBDC - Blockworks
• Canada Moves To Protect Financial Sector From Crypto ‘Challenges’ - Blockworks
📝 Moves
• BTC CA $28,208 +0.74%
• ETH CA $2,157 -1.21%
🔼 TOP GAINERS this week*
• MATIC CA $1.62 +33.13%
• LTC CA $97.08 +28.55%
• ALGO CA $0.56 +13.64%
🔽 TOP LOSERS this week*
• SAND CA $1.15 -5.80%
• DOGE CA $0.16 -4.45%
• COMP CA $66.80 -3.26%
*As of 11/6/2022 12:00 AM EST
📊 Cryptocurrency Market Overview
It was an up week in crypto markets. But the same can unfortunately not be said of the largest equity indices (which ended the week down), bonds or–for that matter–Bitcoin Miners, who have been under tremendous pressure. (TL;DR: With bitcoin hash rates at ATHs while energy costs soar; profit margins for miners are slim pickings). Indeed, some industry analysts warn the pain main not be over: This week one of the world’s largest bitcoin miners (Core Scientific) announced they were in trouble and looking at their options.
Yet, hodlers continue to demonstrate their willingness to serve as buyers of last resort. And as most of bitcoin’s ‘realized-losses’ on chain indicate fewer and fewer coins at a loss, as well as new daily bitcoin address numbers developing momentum, the only question is… Will they be there to buy the (whole) dip if there is a miner capitulation event?
Meanwhile on Twitter, in response to Sam Bankman-Fried’s thread/proposal on DeFi regulation (which has garnered a lot of attention–mostly negative–from the community), Vitalik has chimed in with some of his own ideas around industry self-regulation.
We hope you had a spooky Halloween! That day, the bitcoin whitepaper turned 14. And moody teenager that they are, still shining through the curiosity and promise of a long and fruitful life. Here’s to 14 more years–nay, generations!--of sound, reliable and incorruptible money.
- Yours in the #Hodl
📈 Bitcoin Technical Analysis
• Bitcoin valiantly maintained its (apparent) new price floor of $27.5K
• BTC spent much of the week up around or above $28K
• Current resistance levels: $29,500 - $31,500 - $40,500
• Current support levels: $27,500 - $26,000 - $25,000
🔎 NDAX Feature
Did you know you could set your Dollar Cost Averaging on Autopilot with the NDAX Recurring Purchase feature?
Dollar-cost averaging allows you to buy smaller amounts of an asset over a long period of time at different prices. As the cost of assets moves in a zigzag manner, investing at regular intervals allows you to buy an asset at an average price versus buying a huge chunk at one price point.
🕑 Invest consistently
Recurring purchases are an effective solution for traders looking to invest at an average price over a longer timeframe.
📈 Forget complex price movements
As more institutional and retail investors enter the crypto markets, prices of cryptocurrencies are gaining stability. However, you may still not want to take any significant risks with your money by trying to time the market.
💰 No need for a large sum of money
Investing a considerable amount at once is not possible for everyone. The dollar-cost average approach can be a good choice for investors looking to slowly enter the cryptocurrency market.
Upon login, Recurring Purchases are 6th from the top of the main left-hand menu/navigation bar.
📰 What We’re Reading
• You Don’t Know What You Don’t Know About Your Financial Adviser - WSJ
• 'Hyperbitcoinization' Coming to an Emerging Market Near You, Ray Youssef - CoinDesk
• What is the Lightning Network - Bitcoin Magazine
🎙️ What We’re Streaming
• Dan Held on Bitcoin and the Battle Against CBDCs - CoinDesk - The Breakdown w/ NLW
• Bitcoin Lightning Network Changing The Energy Sector w/ Austin Mitchell - The Investors Podcast - Bitcoin Fundamentals w/ Preston Pysh
📅 Events
• Nov 4th – US Non-Farm Payrolls
• Nov 10th – Consumer Price Index
• Dec 14th – FOMC Interest Rate Decision
Disclaimer: This article is not intended to provide investment, legal, accounting, tax or any other advice and should not be relied on in that or any other regard. The information contained herein is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of cryptocurrencies or otherwise.