TL;DR
- JP Morgan’s buy signal
- Ethereum breaks through key support
- Prepare for Terra 2.0 Tomorrow
Top investment banks using THIS Bitcoin indicator
You might have seen that JP Morgan released a crypto-based report on Wednesday, in which strategist Nikolaos Panigirtzoglou noted bitcoin is entering a good buy zone. Despite the collapse in Terra and current market sentiment, Panigitzoglou believes bitcoin appears undervalued by as much as 28%, putting BTC at a 38k fair valuation by the banking giant.
In the report, Panigirzoglou referenced a few charts that led to the conclusion, notably the MVRZ Z-score. The chart highlights when the calculated number falls below zero, it historically represents an excellent buy zone.
It’s important to realize how the big players are shifting in the current market. This week, we saw a16z open a $4b fund into crypto startups. Yesterday, JP Morgan released their report stating that the firm looks to pivot from real estate towards crypto. Their basic strategy: sell high, buy low.
Source: Dovemetrics
The JP Morgan report, strategically released, in no way means the market has bottomed. In a separate report from June 2021, Panigirtzoglou called for a 145k bitcoin in the “long-term.” The timing of these two reports is likely not a coincidence.
So, It might be easy to decipher when to buy, but the reports tend to go silent when the price begins to reach the top.
Market update 🌍
Bitcoin (BTC) left traders holding their breath after momentarily dipping to 28.1k but it promptly returned to its cozy weeks-long range. Altcoins, on the other hand, fell sharply. The combination brought Bitcoin Dominance up 2.72% for the day and a yearly high of 46.69%. Prices dipped to a low of 28k during US premarket action, but a slew of buyers promptly brought BTC back into a weeks-long range. If BTC fails to climb 3-4% over the weekend, we’ll witness a record ninth straight week of downward BTC action.
Source: Trading View
Ethereum (ETH), which appeared to be in a similar range to BTC, fell by – 7.70% and began testing yearly lows of $US1750. An error likely spurred the drop the beacon chain incurred called a seven-block reorg. Although the root problem appears fixed, the situation raises questions about Ethereum’s merge timeline. As a result, Ethereum (ETH) closed the US session down -7.7% to US$1750.
Source: Trading View
| US markets close | Gain |
| S&P 500 | +1.99% |
| Nasdaq | +2.33% |
| Dow | +0.80 |
| VIX | -3.14% |
Notable Gainers/Losers:
| Protocol (Coin) | Price ($) | Gain (%) |
| Bitcoin (BTC) | 29,565 | -1.0 |
| Ethereum (ETH) | 1,831 | -6.9 |
| Chain (XCN) | 0.12 | +22 |
| Siacoin (SC) | 0.006 | +11 |
| The Sandbox (SAND) | 1.39 | +16 |
| Osmosis (OSMO) | 1.76 | +14 |
| Cosmos Hub (ATOM) | 12.38 | +14 |
| Solana (SOL) | 57.85 | +11 |
| KuCoin (KCS) | 14.39 | +10 |
| Cardano (ADA) | 0.59 | +10 |
| Monero (XMR) | 169.74 | +9 |
| Bitcoin Fear and Greed Index | 12 Extreme Fear |
| “Crypto” Google Trends 90d | 22 |
| “Bitcoin” Google Trends 90d | 39 |
Newswatch đź“°
Terra’s Fatman discovers other Terra chain exploits. The now-famous Terra researcher, Fatman, found an exploit on Mirror finance that stopped users from withdrawing from the protocol. The exploit affected users that utilized Aperture Finance as well. The exploit allowed the attacker to generate $4.3m with $10k in a single transaction.
Burn the UST. The Terra 1747 proposal to burn the remaining UST in the community pool has passed, and approximately 1.3 billion UST or 8.05% of the total supply was burned late last night. Unfortunately, the burn, which was to help the UST peg, had little effect. As a result, UST sits at 0.04, down 59% for the day.
A reminder that Terra Luna 2.0 launches today. The chain looks to go live at 06:00 UTC.
The following exchanges will support the token:
- Huobi
- Bitfinex
- Bitrue
- Kucoin
- Bybit
- Binance
- Kraken
No crypto taxes for Thailand, for now. The King of Thailand issued a royal decree that included a provision exempting taxes on crypto transfers until the end of 2023. Moreover, the Thai government removed a 15% capital gains tax earlier in the year to attract investment into the country’s digital realm.
News Tidbits:
- Game Developer Kongregate and Immutable announce a $40m blockchain gaming fund.
- Introducing Zoop, licensed celebrity digital trading cards.
- Tether launches a stablecoin pegged to the Mexican Peso.
- ARK and 21Shares make another attempt at a spot-bitcoin etf approval.
At The Protocol Level:
Banter’s take
Sentiment on CT appears wanes as bear-market acceptance sinks in. With Bitcoin approaching the possibility of 9 consecutive red weeks – a record – we have to assume the bottom is, if not near, at least nearer than the top.
Still, buying at these levels is not without risks: especially for altcoins. In fact, Bitcoin Dominance’s upwards move to a yearly high could indicate that traders are exiting their alt positions and rotating back into Bitcoin. Yep, the fear is here. And the most likely outcome is that the trend continues, suppressing altcoins’ price action for months to come. Hold your nerve, don’t overtrade, and wait: global markets may have a way to fall before the Federal Reserve, and Eurpean Central Bank pivot in favour of looser monetary policy. Stay safe, remain calm, and remember: this is where the real opportunities are found!
