Comment of the Week
Have a good week Binancians!,
We have entered a very important week in the global financial markets.
Stock markets in many countries, including Turkey, China and European countries, will be closed on Monday due to Labor Day.
The data flow is intense this week and all eyes will be on the Federal Reserve's (Fed) decision on Wednesday, followed by Powell's speech. The rate decision is expected to increase by 25 basis points at 87%, thus increasing it to between 5% and 5.25%, the highest interest rate since 2007.
The US CPI data is still well above the Fed's 2% target, with a rate of 5%, but for the first time, we saw the expression of banking crisis and the expectation of "recession" in the FOMC minutes. The Gross Domestic Product (GDP) data from the USA last week was 1.1%, well below the expectations. Therefore, the interest rate decision and Powell's speech will be an important guide on how we should proceed in the coming months.
On Tuesday, the CPI data in the Euro Zone will come. The expectation is for inflation to reach 7%. The upcoming data will be effective in the European Central Bank's (ECB) interest rate decision on Thursday, but a 25 basis point increase is expected for now.
This week's another important data will be the US employment data. Powell has been pointed to strong employment in every speech. In the data coming Friday, the Unemployment rate is expected to rise to 3.6% and average hourly earnings are expected to hold steady.
Economic Calendar
Monday, May 1, 2023
Microstrategy - Balance sheet will be announced.
Tuesday, May 2, 2023
EURO Region - Consumer Price Index (CPI) (Annual) Expectation: 7% Previous: 6.9% - 12.00%
Wednesday, May 3, 2023
US Federal Open Market Committee (FOMC) Statement and Federal Funds Target Rate Expectation: 5.25% Previous: 5%
USA - Fed Chairman Jerome Powell Speech
Thursday, May 4, 2023
EURO Zone - Interest Rate Decision Expectation: 3.75% Previous: 3.50%
USA - Applications for Unemployment Benefit Expectation: 240k Previous: 230k
Friday, May 5, 2023
USA - Non-Farm Employment Data Expected: 180K Previous 236K 15.30
USA - Unemployment Rate Expected: 3.6% Previous: 3.5% 15.30
Bitcoin Technical Analysis
Our chart has not changed much from last week to this week. I start by reminding the importance of avoiding risks during the interest rate decision week:
On the daily chart, Bitcoin reacts from the red box area I have determined and moves towards the area I marked with the Key Zone below. A candle closing by breaking this area will perform a “Market Structure Break” on the 4-hour chart and may carry the price to the $24,000-$25,200 levels, which I determined with the black box. It is worth remembering that for a new bullish wave, voluminous candle closings above the $32,000 levels should come.
All Stablecoins: Exchange Inflow (Total) - All Exchanges
The Net Flow indicator highlights the tendency of users to send or withdraw funds from exchanges. Your Net Flows will be positive if the inflows to the exchanges are greater than the outflows. Therefore, we see positive Net Flows coinciding with periods following large increases in price or confirmation of downtrends.
Conversely, Net Flows are negative when withdrawing larger volume from exchanges. This can be seen as a sign of accumulation or denotes buybacks after big dips.
Net Flows also affect large-volume crypto assets, while smaller-volume tokens are more susceptible to large changes in price resulting from currency flows.
According To Data From CoinGecko, The Currencies Of The Past Week In The Top 100 Most Rising Crypto
Render (RNDR) %33.3
Casper Network (CSPR) %23.6
Bitget Token (BGB) %17.9
Kaspa (KAS) %17.8
Internet Computer (ICP) %15.3
Last Week's Featured Crypto News
Google Cloud to Optimize Polygon zkEVM
Polygon's core protocols, including Polygon PoS (proof-of-stake), Polygon zkEVM, and Polygon Supernets, will benefit from Google Cloud's framework and developer tools provisioning. The partnership aims to simplify developer integration to build, launch and grow Web3 products and decentralized applications on Polygon. Transactions will be faster and cheaper Google Cloud's partnership with the ecosystem is expected to advance Polygon's zero-knowledge development.
Mastercard Will Work With Four Popular Altcoins
Mastercard will work with blockchain developers Aptos Labs, Ava Labs, Polygon and the Solana Foundation. Mastercard Crypto and Blockchain President Raj Dhamodharan stated that with the Mastercard Crypto Credential, they aim to help verify trusted interactions between consumers and businesses using blockchain networks. This collaboration includes NFTs as well as payment methods.
First quarter report of crypto exchanges: Is the crypto winter over?
Research firm TokenInsight has released its Q1 Crypto Exchange Report, showing centralized platforms getting a vibrant start to 2023. The report stated that during the first quarter, the total crypto market cap rose from $831.8 billion to $1.24 trillion, which means an increase of about 50 percent. Bitcoin (BTC) rose by approximately 100 percent from $ 16,000 to $ 30,000 during this period.
State of California Approves Blockchain-Based Digital Wallet
The county of Santa Cruz in Northern California is one of the latest states to adopt and implement government-level blockchain-based solutions. At the Santa Cruz County Supervisory Board meeting, members unanimously decided to introduce the use of digital wallets for government services and official documentation purposes.
