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| On Tuesday, May 24, please join us at the DC Blockchain Summit, a one-day, premiere gathering of the most influential people focused on public policy action for crypto and blockchain investors.
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| The Stablecoin Wars(Bankless): We've received terrific feedback on our Top Stablecoins series, so here's an even deeper dive into all the up-and-coming stablecoins you may want to watch.
Investor Takeaway: We stand by our analysis that USD Coin and USDT will become most trusted by investors, Binance USD is up and coming, UST is risky business, and all the others are tiny by comparison. The chart below will help. |
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Here's a look at the total supply of stablecoins, showing that Tether (USDT, in dark blue) and USD Coin (USDC, in red) are still the stablecoins most trusted by investors: |
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| Courtesy The Block
Time matters. So beware of the recent rise of UST (in green), as it doesn't match the long-term track record of the others. Investors will look for "sound money," which means building long-term trust.
In fact, UST briefly lost its peg over the weekend, requiring emergency action to regain its value against the US dollar. As we warned you, some stablecoins are anything but stable. |
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Hi Everyone,
Yeah, yeah. I know the markets are crashing. We'll get to that in just a minute. There's bigger news today: the world's largest Web 2.0 platform is taking steps into the wonderful world of Web 3.0. |
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| (To better understand the difference between Web 2.0 and Web 3.0, check out the latest blog from our Head Crypto Analyst Lou Kerner: The 5 Most Important Things About Web 3.0)
Here is Adam Mosseri, the head of Instagram, explaining the changes coming next week to his more than 1 million followers.
In the video, he firmly acknowledges the challenges involved when a centralized platform makes such a drastic move into the world of decentralization. |
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| It's probably a good thing that Mosseri is making this announcement instead of Mark Zuckerberg. We all remember when Zuckerberg changed the name of his company to Meta and was criticized for trying to own the metaverse.
The confirmation that several of the leading layer one blockchains will be included in Instagram's upcoming pilot shows that they're joining the movement rather than trying to get in front of it.
With both Twitter and Reddit already allowing some of their users to post NFTs as profile pictures, Meta is a bit behind the curve. But they are a very welcome late entrant on the adoption scale.
I was wondering who would build an Instagram-like platform for NFTs. Now we know.
On a normal day, an announcement like this would probably send crypto prices through the stratosphere, but this is not a normal day. |
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Bear market blues
Even the NFT gambit, however, cannot save Meta from the bear market that is now gripping global assets. |
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| As I write to you, bitcoin has now fallen to its lowest level in nearly a year, apparently following the stock market off some sort of proverbial cliff.
This is clearly the Federal Reserve's fault as the financial institution tightens its grip on the economy. Fed Chair Jerome Powell and his cronies have pumped way too much money into the market when it wasn't necessary, and now the central bank has quickly gone from being one of the world's largest buyers of financial assets to being among the largest sellers.
As the Fed raises rates, the U.S. Dollar Index has reached its strongest level since 2002.
This Wednesday we'll get the U.S. consumer price index (CPI) figures, which should give us a good indication of how the Fed's inflation-fighting agenda is affecting the real world and how much more pain it might need to inflict in order to get it under control.
Many crypto enthusiasts are not happy with the Fed's dominance over the digital currency markets. Unfortunately, that dominance is here, and it's plain as day.
Cryptoassets have reached peak fear. This particular index has rarely been lower than it is now in the years since it was created. |
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It's also worth noting that bitcoin has now completed six consecutive red weekly candles, a phenomenon that hasn't happened since 2014. |
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A matter of conviction
Last Friday, I had the privilege of joining Scott Melker, the Wolf of All Streets, making a brief appearance on his livestream, and our thoughts about what traders should be doing right now were uncannily similar. |
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| Without giving any spoilers, one thing he pointed out to me was the bitcoin dominance index, which has a tendency to rise when cryptos are falling but for some reason isn't right now.
This tendency is caused by bitcoin acting as a safe haven as some of the more risky coins sell off and the market consolidates into the leader.
The fact that it's not happening now could mean that a lot of the speculative money has already washed out and that the remaining token HODLers have a lot more conviction.
As far as bitcoin cycles are concerned, we've now passed the halfway mark to the next bitcoin halving. This is a time that's been particularly painful during previous halving cycles, as we can see from PlanB's stock to flow chart. |
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| Even though using past performance charts to try and predict the future is folly, it can be helpful to conceptualize what we're going through now and what actions we should be taking. My own conviction has rarely been higher.
I stated months ago when bitcoin was near its peak that $32,000 would be my reentry level. At this time, I'm accumulating the coins of several projects that I'm involved with and advising, and I'm once again looking into options for financing further purchases.
We all know the famous words of Warren Buffett about what we're supposed to do when others are fearful. Here's another quote, which is slightly less known and attributed to Baron Rothschild: "Buy when there's blood in the streets, even if the blood is your own."
Wishing everyone a fantastic week ahead!
Mati Greenspan CySEC Advanced License #672277 Contributor to BitcoinMarketJournal.com Advisor to LunarCrush.com Advisor to Electroneum Advisor to Supremacy.game Trader at eToroUS.com Author of The Complete Guide to FinTech Investing |
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| Mati Greenspan Analysis, Advisory, Money Management |
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It's great to see this futuristic layout! It's wonderful to see this latest sign of adoption in the crypto industry. |
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Everyone else sees "50% down." We see "50% off." |
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| Bitcoin Market Journal is a daily newsletter that makes you a better crypto investor. It is created by Evamarie Augustine, Charles Bovaird, Mati Greenspan, John Hargrave, and Alexandre Lores.
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