The state of the market
Three times this week Bitcoin has encountered a freeze at $25,200. A break of this level could potentially trigger a new price surge.
A period of stabilisation or even a test of the $20,000 threshold to fill orders might be more desirable, but will this be the start of a bullish market?
According to the four-year cycle hypothesis, it seems so, although Bitcoin has never encountered macroeconomic conditions like these and is becoming increasingly associated with equities. In recent days, investor sentiment has reached its highest level of greed in 12 months, indicating a sudden change in the investment climate.
In addition, China's involvement has created some enthusiasm in the markets.
The chart shows that small investors have money to put into the markets, indicating a greater willingness to take risks. It is difficult to predict how long this trend will last.
The famous saying 'one must seize the moment'. It is to be hoped that this is not a big trap, but a situation similar to that of 2019. However, it depends on the macroeconomic situation.
China is back
Last Friday, China injected the incredible sum of 92 billion into the financial markets.
The country is going through a phase of substantial monetary expansion and is returning to business as usual. In addition, China is becoming more favourable to cryptocurrencies thanks to the Hong Kong Agreements and a taxation system for cryptocurrencies. The liquidity situation is huge.
Since 2009, China has controlled global economic cycles and the lowest point in liquidity is thought to have been in November 2022. Thereafter, the rebound was largely influenced by Japan and China. Recently, there has been talk on social media of 'Chinese coins' whose value has risen thanks to discussions in Chinese online chats. Examples are FIL, VET, HIGH and TVK.
It is not yet clear to what extent this is true, but it could become a self-fulfilling prophecy.
In addition, a new ponzi scheme is gaining ground in China that requires users to deposit coins such as Matic and EOS. In short, the fact that China is returning to the markets is important and could be the main narrative for 2023.
Personally, I will not be hasty in underestimating China printing a lot of money. Let's just hope that geopolitical tensions don't hamper the markets. At the moment, we are seeing a lot of warnings directed at China. I really don't like this situation.
EGLD and Tencent?
Have you never heard of Tencent? It is the 15th largest company in the world, with a strong interest in Artificial Intelligence, Internet and digital content.
It owns WeChat, which has 1.2 billion users, and gaming titles such as Fortnite and League of Legends. In short, it's a big breakthrough! EGLD has just partnered with Tencent's cloud division. They will provide web3 technology services to the company and Tencent will manage the nodes and provide the infrastructure.
This is huge news for EGLD, just like the Amazon Avalanche partnership was for AVAX. Big things are happening in the cryptocurrency world. The biggest companies in the world are approaching the market and entering into partnerships.
Arbitrum doesn't stop any more
Vela, a new exchange that deals in perpetual swaps, has managed to surpass GMX in terms of daily volume.
GMX on Arbitrum recorded 171 million yesterday, while Vela made 293 million. This is mainly due to the fact that people are hoping to get airdrops. This shows how quickly the market can change.
The difficulty for Vela is to continue to provide value and keep people on the farming platform. GMX should not be overlooked either: its V2 version is on the way.
The figures are not astronomical, but they do indicate a significant expansion in the use of Arbitrum's original programmes, which continue to be all the rage among brokers.
Zyberswap has overtaken Uniswap on Arbitrum in terms of LTV. Radiant Capital is about to introduce its V2 adaptation, which will bring much more money to members on the stage.
The most notable indication from Arbitrum is this: on Tuesday, Arbitrum surpassed Ethereum in terms of total daily transactions. It made 1.1 million transactions, while Ethereum made only 1.08 million.
In 2023, some individuals will be able to benefit from Arbitrum's low-capitalisation native coins. However, one must be cautious because there are many fraudulent coins that will be released on Arbitrum.
However, the market tilt towards Arbitrum is evident.
If you are not familiar with Lens, it is a social web3 platform created by the founder of Aave.
At the moment, information is limited. The best way to potentially receive an airdrop is to
- acquire a LENS profile. These are available as NFTs on Opensea through Polygon and currently cost around $150.
- Use LENS applications such as https://lenster.xyz/ or https://lenstube.xyz/.
Distribute content, follow people and share posts. That might be all it takes. There were some tasks to complete, but they have recently expired.
Remember that you might not get anything, but you can still find and use a social web3 platform for fun and experience.
Spaziocrypto ( Riccardo Curatolo and the newsletter writing team ) does not provide personalised investment advice. Spaziocrypto LTD is not registered to provide investment advice, is not a financial advisor and is not a broker-dealer.
The material provided is for educational purposes only. Spaziocrypto is not responsible for any gains or losses that result from your cryptocurrency investments.
Investing in cryptocurrencies involves a high degree of risk and should only be considered by people who can afford to sustain a loss on their entire investment.
Investors should consult their financial advisor before investing in cryptocurrencies.