Cryptonomics – your weekly crypto & blockchain readings 📰
20th May – 27th May
This is Rizvi, entrepreneur and crypto enthusiast based in Zurich, Switzerland. Every week, I’ll share with you some of my weekly readings and thoughts around crypto and blockchain topics, from market insights to trading activities. Feedback is more than welcome!
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📈 What happened in the markets this week
Apple seeking a person with crypto experience in ‘Alternative Payments’. Apple is looking to hire a business development manager with experience in cryptocurrency to lead its “alternative payments” partnership program. This is great news for the crypto space and again solidifies further the use cases for Bitcoin and other cryptocurrencies. 📰 Yahoo Finance
PayPal will let customers withdraw crypto. Currently, using crypto to pay via PayPal is only available for US customers. And up until now, PayPal did not let users move cryptocurrency holdings off-platform. This will change now in the near future, PayPal exec confirmed. 📰 CoinDesk
Elon Musk is helping crypto miners to form Bitcoin Mining council. Elon Musk wants to form a Bitcoin Mining Council and promote energy usage transparency to accelerate sustainable initiatives worldwide. The meeting was hosted by Michael Saylor, CEO of MicroStrategy. 📰 Business Standard
💡 Deep dive into the markets
Are we in a bull trap? After the massive crash last week and the uncertainty of price movement over the weekend, it appears now we are back on track. Prices are pumping, BTC is at 38K mark and ETH is above $2700 from the recent dip at around $1600. Polygon (Matic) was for a short time available for only $0.80 and jumped back up now to $2.30 (would have been a sweet 3x). Are we back on track to the moon? Maybe not!
We might be right in the middle of a bull trap. What is a bull trap? A bull trap is where the market is manipulated in such a way, that you think that we are in an upward trend (and might start going long on your position), only to be dumped shortly after, finding yourself liquidated.
At the moment, I think, we do not have strong signs of an upward trend. Yes, it’s true, the market recovered but we are still below the very critical 200 days moving average line (in red) which you can see below. Not only that but we also do have a very strong resistant level of $40K.
If the bull trap plays out nicely, the price would further continue to shoot up to approx $45K from where we would see a huge sell-off leading to a second heavily liquidation event. That would be definitely a point where the new-comers going into the crypto market with huge leverage would be flushed out of the system and I do think, that would be also the time where we are ready for the next leg up in the overall larger bull run which I believe we are still in.
From a timeline perspective, that could lead us into July before the true recovery starts. This would also nicely align with the EIP1559 release which will certainly have a positive price impact on Ethereum (if not delayed once again).
I might be all wrong and hence make your own assessment and only invest money you can afford to lose.
🎯 My top crypto picks for May
1️⃣ Ethereum – ETH
Ethereum has a bright future ahead especially with all the upcoming releases such as EIP 1559 expected in July. It’s a no-brainer that Ethereum has always been and still will be a very strong asset to hold in your portfolio.
2️⃣ Chainlink – LINK
Many projects rely on third-party data. Chainlink being the largest oracle platform with huge backing from all corners is a top project to consider.
3️⃣ Uniswap – UNI
Uniswap just proves its strength by demonstrating how stable it ran during the huge market movements the past two days. While many CEX abandoned ERC20 transactions due to overload Uniswap processed billions of transactions with ease. A great hold in your portfolio.