⚠️WARNING! Here's why Bitcoin is dumping.

What up, family, 👨‍👩‍👧‍👦

Seedphrase Daily here 👋. We feed you info on Crypto and NFTs so you can concentrate on feeding your cats.

Today’s estimated research time is 4 hours and 55 minutes condensed into a read time of  4 minutes and 4 seconds. Stay tuned to where we talk about: 

• ⚠️WARNING! Do you know why Bitcoin is dumping? 

• 🌃 Will the Bitcoin powered city go down in history? 

• 🥸 False claims of Kylie Jenner wanting to buy a Bored Ape.

• 👨‍🏫 How to create an NFT collection for Free! 

⚠️WARNING! Do you know why Bitcoin is dumping? 

Oh, man. The markets have been getting dark these past few weeks, but there could be some light at the end of the tunnel. Let’s do alittle breakdown. 

One of the first points of long-term price action is noticing what Bitcoin is doing with the 200-Day Simple Moving Average (SMA). The 200 SMA is a moving average of the last 200-day candles. It shows you a more condensed version of the price action via a linear graph. People use these points as a support or resistance line. 

Bitcoin is currently at the $22,3001 zone, with the 200 Adaptive Moving Average (AMA) playing key support. Please note that the 200 AMA has never been broken and is a strong support zone as the price is more likely to bounce up from it. But if it breaks this, we are in for another downward spiral. 

If we're going to be here, then let us at least know what's going on: 

The crypto markets are affected by the widespread panic in risk assets and broken price action charts. The fear in investors is driving the market even lower. 

This year we see Inflation at an ATH with the feds raising interest rates by 8.3%. This makes stock prices go down -> investors become more scared ->they start selling assets to get profits, ->prices go down more. Simple right? 

The macro-economic effects like Inflation are significant factors in the collapse of the crypto & stock market. Cryptocurrencies had responded to reduced liquidity and other risky assets by falling when the Fed announced in November that it would begin tapering its purchases of bonds and signalled higher interest rates were on the way.

But we're not the only ones suffering. 📉

Celsius, a controversial cryptocurrency lending platform that promised users up to 20% returns just like Terra Luna, has paused all withdrawals on their platform. They managed over $20B in assets and tried some risky investments. 

Their plan was: 

1. Get customers to deposit crypto and earn interest!

2. Take the customers money, and invest it in Defi to get a higher yield

3. Keep the arbitrage difference 

They had a few risky investments in Defi, which cost them a lot, and they lost over $100M+ on various hacks.

After misplacing billions of dollars, customers wanted to withdraw money, but Celcius proceeded to pause withdrawing on their platform due to insufficient funds once Bitcoin hit $22k on June 13. Is this Celsius withdrawal freeze the rollercoaster that crypto enthusiasts signed up for?

A rival crypto lending firm called 'Nexo' predicted the Celcius withdrawal freeze. They offered to help the company with liquidity to pay their customers. However, Celcius refused. Petty? 

Full Article 

MicroStrategy is also down $1B on their BTC bet!

MicroStrategy is sitting on an unrealized loss of more than $1 billion on its Bitcoin holdings as the price of the largest crypto by market value.

The CEO of the technology company began purchasing bitcoin in August 2020 at just under $12,000. Subsequent purchases over the following months brought the company's holdings to 129,918 bitcoin, now valued at under $3 billion, compared with a near-$4 billion investment.

Imagine what happens if Microstrategy sells..?

Even the experts of traders lose tons of money. In this case, Microstrategy will suffer a major problem if bitcoin reaches $3,562, leading to a margin call and a $4B loss.

For beginners looking to enter the space, don't trade margin before you can assess your risk tolerance properly.

🌃 What’s happening with the Bitcoin powered city? 

After bragging on Twitter about buying "the dip" of BTC when it was at $30k, one month later, we're seeing lower prices, close to $20K. Maybe don't speak too soon. 

El Salvador has been delaying the 'volcano bonds', which were supposed to launch in March 2022. The country opted to postpone the $1B offerings, which should fund the Bitcoin City. The current market conditions are the limiting factor to having this bill passed.

Massive financing from taxpayers' money to invest in a crypto is a very risky strategy El Salvador is undergoing. However, if the next bull run meets economists' expectations, we may hear about this story forever! What do you think will happen? 🧐

🥸 Kylie Jenner throwing shade at the APEs

Remember in November 2021. Kylie Jenner allegedly asked a Twitter Ape holder to buy one of his BAYC NFTs in DM? 

A debate erupted in the community after he allegedly blocked her from demonstrating his views on the nft culture. Alpha male (sarcasm). Well turns out these are fake. 

Kylie's Tweet 

How can we spot when these people are lying or not? Most of the time, the source is: trust me bro, so it's important always to do research. In this case, it was just his words against hers, but this example proves that everyone is quick to hop on the first piece of information they hear and run with it. DYOR and make sure your source is reliable! Like us, hence you should share this info 😏

👨‍🏫 How to create an NFT collection for Free! 

It's your lucky day. Are you an Artist trying to create but can't because software prices are out the roof? Or are you trying to learn so you can do your project? Today's your lucky day! Here are some free resources you can use to develop your artistic side. 🎨

1. Krita Painting. A free, open-source software. Suitable for Mac, PC & Android. Krita has a powerful array of tools, brushes, layers & blend modes. It's a great alternative to Photoshop and Procreate. 

2. GIMP Official, is another photoshop alternative, more useful for photo editing & graphic design than Krita. Use extensions UFRAW or DARKTABLE for photo editing

3. Blender Studio. The best 3D animation software in the game. It does everything - modelling, sculpting, rigging & animation. There is a steep learning curve, but Blender Guru on YouTube has excellent tutorials.

4. Other 3D animation tools such as DazStudios, Clara.io and Filmora

5. ShotCut and VSDC for video editing. VSDC works best if you need text overlays. ShotCut works best if you need to use multiple audio clips or need more flexibility with video clips.

6. Vectornator for MAC & InkScape for Windows, Mac & Android are Adobe Illustrator Alternatives

Let us know if you're working on anything at the moment! 

NewSeeds:

Bullish or Bearish NewSeeds? 🐂🐻

Rap group Migos just dropped a music video in Decentraland. The future is coming. 3D full immersive concert experiences. 🎤🎥

DAO inserts $1B into the USDD stablecoin aftering sitting at $.97. Is this next Luna? 🤔

Solana launches a $100M fund. They are trying for next solana summer. ☀️😭

That’s a wrap! What are things you are doing to make money in this bear market? Let us know and we will feature it on a future newsletter! 

Make sure to follow us on Instagram and Twitter for more up to date content! Also check out our Youtube Chanel, where we discuss hot topics and some potential calls if you’re too lazy to read. Make sure you subscribe because at 1000 subscribers we are going to be giving away 1Ξ to a lucky person!  

See you tomorrow! ✌️ 💎

Meme of the Day 

The charts speak for themselves, source : trust me bro 

Disclaimer

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!