- MoeMentum University
- Posts
- πΌ3 Days this month you need to know about
πΌ3 Days this month you need to know about
GM π¨βπ©βπ§βπ¦
Seedphrase Dailyπ The fastest way to get crypto news and knowledge directly to your inbox!
Todayβs estimated research time is 7 hours and 45 minutes condensed into a read time of 4 minutes. Stay tuned to where we talk about:
πΌ3 Holy days that will affect this market this month
πββοΈTikTokβs head of gaming quits to start a Blockchain company named Meta0
π΄Planting Plays
πΌThe 3 Holy days that will affect this market this month
Cryptocurrencies, especially Bitcoin, have been an asset class that's been strongly correlated with the inverse of other markets, such as the Nasdaq and the DXY, which just hit their highest point this month.
What are the three holy days? And how will they affect Bitcoin this month? π€
July 13: CPI data announcement(inflation marker)
No matter what markets will react to this data immediately if it's higher than usual, consumer products go up, giving less value to risk-on assets like the stock market and DXY.
Last month it came out higher than economists predicted and claimed it was a catalyst for a more significant market selloff.
Because Bitcoin has an inverse correlation, we could see a bounce if CPI data comes out higher.
July 26-27: FED interest rate hike
The decision is between raising the interest rate 50bps or 75bps
If it goes higher, we could see the DXY go down drastically
If it goes lower, we could see the market going down just a bit less, haha
July 28: Are we in a recession? The confirmation.
The U.S. Bureau of Economic Analysis (BEA) will release an advanced estimate of the United States' GDP for the second quarter of 2022 on July 28.
US GDP registered losses of -1.6% in Q1 of 2022, and it's expected to go to -2.6% in the report on July 28, which means that almost all markets could have room for a bottom some time in the next few months.
But this is the first time we've seen Bitcoin crash due to macro factors(things happening in other markets and currencies), which is natural because this is the "riskiest" and "unstable" financial asset today. But zoom out a few years ago, they only considered it an internet fad.
These dates will significantly impact how the market will move this month, and if you have any questions on why it's doing what it's doing. You got the answers. π
We can expect this to last a few more years and could still be in for a Bitcoin dump to $15K~ in the next three months before it bottoms out. As for the rest of the economy, some people might lose their jobs and houses and be in severe debt for the next few years if they don't plan correctly. π
πββοΈTikTokβs head of gaming quits to start a Blockchain company named Meta0
We've already seen the Billboard CEO get hired at Doodles. Now, TikTok's former head of gaming, Jason Fung, is starting a blockchain company that aims to connect different metaverses together.
He says, "I left TikTok because I saw a clear opportunity to offer a solution to the current segregated nature of infrastructure options available to developers looking to build blockchain games." It should be essential to note that all the leading business leaders are starting to gravitate towards crypto, some even quitting their jobs to pursue a company in it. πΌ
Could we see retail coming into gaming NFTs in the next few years?
Even if the two sectors are retail-focused services, NFTs have done much more in only transfer volume, doing +$10M compared to gaming doing $8M~. But this could be due to wash trading.
Wash trading is when people trade NFTs between themselves to create an illusion of volume. Some wallets did 650 000Ξ in volume buying and selling the same 3 NFTs between wallets. Without interacting with other buyers or sellers, the wallets in question spent around $114M on gas fees and received $185.5M worth of tokens. Now that it's slowing down, we can see a more accurate depiction of what's happening.
With the two sectors catching the public eye, it could be imminent that people take enough interest to start building around the two!
The only problem now is that "In 10 out of 11 of the projects we studied, users have held their VRE NFTs for less than 25% of the time the NFT collection has been live. In 6 out of 11, they've held it for less than 15%. In other words, VRE purchases in most of the above projects would be best characterized as "flipping." People and companies need to build and deliver on their long-term value, or we aren't going to advance, but this is a slow process we can't feel instantly.
We are in a pullback. π
The holy grail for the crypto market is if everyone suddenly starts using it, but things don't go from 0-100 in a matter of days. These things take time.
Only, just about every macro effect is against us right now. But if we analyze how NFTs moved this year, $37B has already been spent on NFTs this year compared to the $40B in 2021
Transactions below $10K amounted to 90% of the transaction frequency, with about 740k active buyers and sellers for NFTs this past quarter.
The number of institutional-sized NFT transactions has been steadily increasing this past year! Not bad for a rocky few months. The metaverse is coming to us fast and in many ways it's already here, just not developed to the point of mass adoption. Keep your eyes out.
As time passes, NFTs will split into sub-economies, creating old and new money. π€
Old money would be considered NFTs that is Art and real-world utility. Such as tokenized music rights and some blue-chip projects like Bored Ape Yacht club. These are layer one, early adopters who don't mind spending a few hundred dollars on network fees.
New money would be considered "low-end," affordable NFTs and will likely be done on layer two platforms with lower gas fees, such as Solana. This will add more to the user experience while focusing on lower and faster fees; it will become less of a theory, and more people will just be using Web3 seamlessly.
π΄Planting Plays
DYOR on this, but it could be a potential play!
It started as a downloading music service in the late 90s and is now rebranded as an NFT platform. Releasing a limited collection of 10,000 NFTs, being a holder grants you access to exclusive LimeWire events, $LMWR token rewards and early access to future NFT drops.
With a limited amount of NFT to purchase, they start at $750, which can be paid via Credit Card, BTC, ETH or USDC. NFA, just some research done by your friends at Seed Phrase.
Plant your seeds and help us grow? Give us your thoughts on todays email! |
That's all for today. Make sure to follow us on Instagram and Twitter for more up to date content! And check out our YouTube and subscribe because we are giving away 1Ξ once we hit 1000 subscribers.
See you tomorrow! βοΈ π
Meme of the Day
Crypto people making small talk:
None of this is financial advice. This newsletter is strictly educational and is not investment advice or solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research!
Reply