Cointree Crypto Market Update - February 23rd 2022
Market report for traders
What’s happening in the market?
Markets trend down as geopolitical tensions rise
As tensions at the border of Russia and Ukraine rose this week, both traditional and crypto markets fell. Bitcoin sits at AU$51,991, down 13.7% for the week, while Ethereum is at AU$3,520, down 16%. The other top smart contract platforms also corrected; BNB by 13%, Cardano by 19%, Solana by 16%, Terra by 5%, Polkadot by 17%, and Avalanche by 23%.
Bitcoin sits in the backdrop of these geopolitical tensions. This week, Ukraine officially legalised bitcoin and other cryptocurrencies, while the Russian ministry submitted a proposal for bitcoin regulations that would permit investing, but not direct transactions.
It may simply be a coincidence that these regulations are coming through in the face of a potential conflict between the two countries. However, if either country was sanctioned and removed from the US-controlled international payment system, called SWIFT, they could look to crypto as a way to settle international payments. Moreover, they may see crypto as a backup financial system to conduct trade domestically.
JPMorgan and Snoop Dogg Launch Projects In Competing Metaverses
n the virtual world, one of the world’s biggest banks and an infamous rapper are making major moves. Looking to be the first financial institution to enter the metaverse, JPMorgan built Onyx—a lounge in the Decentraland metaverse. Meanwhile, over in The Sandbox, Snoop Dogg has launched a collection of 10,000 NFT avatars that can be used in the game.
Flow sets records after UFC and NFL launch NFT platforms
Flow is a blockchain famous for the success of the NFTs on its platform, including CryptoKitties and NBA Top Shot. Now, both the UFC and NFL are launching NFT marketplaces on the platform. These launches have seen activity on the network surge and they just set records for daily transactions and new wallet signups.
Bitcoin showing more weakness
It looks like bitcoin hasn’t been immune to the news around Russia and Ukraine. Following the instability in global markets, BTC retreated an eye-watering 14% for the week. Bitcoin has now bounced off the AU$52,600 mark and may develop some support here. Although, any break down under ~AU$48k could see a sharp correction back down towards AU$40k.
With trading volume in crypto being relatively low at the moment, it may be a sign that some investors are divesting some of their crypto holdings for safe havens such as gold.
Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are bearish right now, with RSI nearing oversold territory. From here, I’m watching support and resistance very closely and will be biding my time looking for bounces to trade.
- Bitcoin (BTC) is down 21% for the week.
- Relative Strength Index (RSI) is nearing overbought.
- Moving Average Convergence Divergence (MACD) is bearish.
- Watching support and resistance closely.\
Disclaimer: Information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.\ As cryptocurrencies remain volatile, all prices and percentages may have changed since the time of writing.