A new week (and what a week!) for cryptocurrencies is over. Elon Musk, the Fed, NFTs, Halloween, Bitcoin, and Ethereum, are just some of the protagonists that have had the last few days. Join us in this recap of everything that happened in the ever-changing and fast-paced crypto world.
We can’t but start by talking about one of the events that has had the most repercussion in the media and social networks: the purchase of Twitter by tycoon Elon Musk. Our good Elon is widely known for his support (quite irregular at times) for cryptocurrencies. Mainly to Dogecoin, the most popular memecoin on the market and precursor of many others that have tried to follow its path.
As a consequence of the acquisition being confirmed, after months of back and forth and mutual accusations, memecoins saw a dramatic rise. Doge, the diva of the market this week, surged 150% to the great joy of its holders, who had been suffering several blows since the token hit its ATH late last year.
It is still not entirely clear what the role (if any) of cryptocurrencies will be within Twitter’s scheme in “the Musk era”, although many are already speculating that the dog coin may have some function. Hence its massive rise. Although CZ, CEO of Binance, and our friend Elon could be plotting to take Twitter closer to Web3 and hence CZ´s interest in investing $500 million to support the operation.
Speaking of CZ, he had some controversial statements in support of Central Bank Digital Coins (CBDC), in which he claimed that these pose no danger to the rest of the cryptocurrencies and that “the more we have, the better“. This is highly debatable if we take into account that governments seek to control, limit and even persecute those who use decentralized finance by creating “their own cryptocurrencies“. Quite the opposite to the original spirit that led to the creation of the blockchain and digital currencies in the first place. It is clear that CZ must “play nice” with governments for them to allow Binance to continue to generate money without much meddling.
Moving on to a more festive topic, Halloween arrived and obviously there was no shortage of laughter, costumes and… memecoins? As if it wasn’t enough what we had with Doge, Shiba and the rest during this week, some “marketing geniuses” have had the brilliant idea of combining Halloween, cryptocurrencies and Elon Musk to launch a new token. Will it be the new Bitcoin or another of those coins that are born and die in a few hours? The answer might surprise you (or not…).
NFTs didn’t want to be left behind from this week’s market party and there are many projects looking to innovate in this aspect. More monkeys in sight? No, relax, nothing like that! Instagram announced that it will be launching the option for content creators to sell NFTs to their communities.
On the other hand, with all the buzz around HBO’s House of the Dragon series, Nifty’s and Warner Bros have partnered to release a collection of Game of Thrones NFTs. The winter of NFTs is coming… or has been here for a while now.
And speaking of winter, cryptocurrency winter has given investors a little breathing room. Even though a fall was expected, as was the case with traditional markets, as a result of the Fed’s interest rate hike, cryptos have managed to come out of the situation with flying colors. Bitcoin seems to have found a point of support at $20K and we could see a rise to $25K in the near future, according to the analysis of our trading expert. For its part, Ethereum is also having a good time with the latest post-merge rallies, although it might have hit a hard-to-break resistance at $1,600.
As for the rest of the altcoins, Cardano, which has had its holders drowning in a sea of tears since it lost 90% of its value after its ATH, had a few days where it looked like it would wake up from its long (VERY VERY LONG) nap, rising almost 20%, but it failed to confirm its good momentum and has stalled again. Charles, are you there?
Continuing with altcoins that looked good but fell into mediocrity, Solana failed to rise even when all the rest of the cryptocurrency market is in a bull run. KO blow for the much hyped SOL?
And so much for this humble recap of everything that happened in the always entertaining world of cryptocurrencies. Remember to keep your coins safe, lest they become one of the 3 billion that have been stolen during this 2022. And see you next week in a new Crypto-Economy newsletter.