ALT 5 Sigma

↘️ Limited drivers put charts/technicals in greater focus for major crypto tokens
↘️ China officials acknowledge stresses imposed by covid-related lockdowns
↘️ Fed Vice Chair steps up criticism of stablecoins after TerraUSD/LUNA collapse

Major crypto assets continue to consolidate as the sideways trading pattern has now extended to two full weeks. That has placed some greater emphasis on the chart/technical picture.

Bitcoin (BTC) has breached support at $28,500 established by the series of lows since May 14. A sustained break would open scope back towards the spike low of $25,300 reached on May 12.

Read the full report here: alt5sigma.com/digital-assets-morning-call-may-26-2022

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↘️ A major crypto investor $4.5 bln for a new fund
↘️ Lower long-term US yields could have implications for crypto

Andreessen Horowitz announced Wednesday that it has raised $4.5 bln for its fourth crypto currency fund. The firm has now raised $7.6 bln for digital asset investment. Importantly in the current dynamic, the announcement suggests that the recent pullback in major crypto asset prices has not discouraged the demand for longer term investors to get involved in the space.

Read the full report here: https://alt5sigma.com/digital-assets-morning-call-may-25-2022

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↘️ Central bank surveys show increasing participation in crypto markets
↘️ Eurozone data and hawkish ECB given euro a lift
↘️ US dollar slippage reduces a potential headwind to major crypto assets

Two central bank surveys demonstrate the growing adoption of crypto by individual investors. A Federal Reserve Board survey shows 12% of Americans hold crypto, and do so mostly for investment purposes. A small fraction, just 2%, used crypto for payment purposes, which highlights the drawbacks — including cost and speed — of using more widely held tokens such as bitcoin and ether for everyday payment transactions.

Read the full report here: alt5sigma.com/digital-assets-morning-call-may-24-2022

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↘️ ECB tightening expectations rise, supporting the euro at the US dollar’s expense
↘️ Fiat currency developments remain an important input for crypto assets
↘️ Another major designer will begin to accept crypto payments

Bitcoin and ether price consolidation continues, with the sideways price action now extending to ten days. Interestingly, over that same time, the US dollar has begun to fall back from what were 19-year highs.

Crypto assets such as bitcoin are sometimes viewed as a hedge against the US dollar and are thought to move inversely to the US currency. In that regard, we can view recent dollar slippage as a constructive development for bitcoin.

Read the full report here: alt5sigma.com/digital-assets-morning-call-may-23-2022

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↘️ US equities fall sharply as corporate profits and margins are squeezed by inflation
↘️ Bitcoin and ether soften but hold up better than Nasdaq
↘️ Moves by crypto platform and private bank show convergence of digital and traditional finance

Risk assets fell sharply Wednesday and are still under some pressure today after consumer giant Target not only missed its earnings target but just as importantly noted that higher costs were reducing its profit margins. That news not only generated steep losses in Target’s stock, but in US and global equities more broadly.

Read the full report here: alt5sigma.com/digital-assets-morning-call-may-19-2022

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↘️ Tether (USDT) market capitalization has dropped 10% in the past week
↘️ The market cap decline follows last week’s TerraUSD collapse
↘ Market participants look for more clarity on stablecoin backing and collateralization

Today’s Financial Times highlights the impact that last week’s TerraUSD’s (UST) de-peg from the US dollar is having on other stablecoins. Data from CoinMarketCap shows the market capitalization of Tether (USDT), the world’s largest stablecoin, has fallen to $74.1 bln today from $83.1 bln prior to last week’s UST/LUNA collapse, a drop of 10.8% and the lowest market cap since last December.

Read the full report here: alt5sigma.com/digital-assets-morning-call-may-18-2022

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↘️ Correction in major crypto assets continues
↘️ A welcome report on the US economy
↘️ Regulators take notice of last week’s TerraUSD and LUNA collapse

Major crypto assets are trading more constructively, stabilizing following last week’s measurable declines and in line with the improvement in risk assets more broadly.

Bitcoin and ether continue to correct higher

Bitcoin (BTC) is trading on either side of the $30,000 threshold after nearly reaching $25,000 in last week’s selloff. Still, at current levels it is down some 35% from its late-March highs. Ether (ETH) has also bounced from last week’s $1,700 low, a key support area, to recover above $2,000. But for context, it is down over 40% from its early-April highs.

Read the full report here: alt5sigma.com/digital-assets-morning-call-may-17-2022

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↘️ Momentum overtakes fundamentals
↘️ Contagion evident as Tether’s peg to the US dollar briefly breaks
↘️ US accounting standards coming for crypto

Selling pressure in major crypto assets persists, taking bitcoin and ether to levels not seen since December 2020 and March 2021 respectively.

The break of much-watched technical support levels has added to the downward momentum and made it the more dominant price driver, more so than the still important changes in the macro backdrop.

We say that because of the outsized losses in many crypto assets has accelerated in recent days.

Read the full report here: alt5sigma.com/digital-assets-morning-call-may-12-2022

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↘️ US CPI remained high in April, reinforcing Fed tightening expectations
↘️ TerraUSD and LUNA continue to fall as LFG float rescue plan
↘️ Coinbase disclosure raises concerns about retail protections in a black swan event

Major crypto assets are trading defensively, pressured by the latest round of US inflation data.

Bitcoin (BTC) is trading within the potentially critical support zone of $29,000-$30,000, defined by the series of lows reached in early and the middle of 2021. A sustained break of that would potentially intensify the current bearish sentiment and open scope for an extension of the recent decline.

Read the full report here: alt5sigma.com/digital-assets-morning-call-may-11-2022

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ALT 5 Sigma

ALT 5 Sigma

ALT 5 Sigma is a global fintech company providing next-generation blockchain powered financial platforms.