⤴ The bottom is finally reached; hail the bull market?
Bitcoin, followed by alts, is skyrocketing. Let's figure out what's going on and explore some interesting opportunities.
So that's a breeze, fam! The buidlbee crypto community is here.
We said, "hang in there, frenz." And here is the result: the market has turned sharply "green.” But only hard work pays off. So toil, guys, toil. And we, as always, will do our best to help you.
In today's letter:
We look into why there has been a sudden rise in the price of bitcoin and most altcoins;
Government Ethereum: What else is it?
What's going on around Tornado Cash (TORN) and what opportunities does it present?
Zilliqa (ZIL) is preparing for a retest;
Collecting rewards from Alpaca Finance 2.0.
Now for today's highlights (other than Bitcoin at $30K):
Binance.US changed its mind about buying the $1 billion assets of cryptocurrency lender Voyager because of the "hostile and unclear regulatory climate" in the U.S.
Aptos has announced a partnership with Google Cloud.
Amazon has postponed the launch of its own NFT marketplace until May 15.
DEX Merlin on zkSync was hacked during a public sale of its MAGE tokens, with $1.82 million stolen from liquidity pools.
The Solana Foundation announces a $1 million fund for small grants ($5,000 to $25,000) exploring the intersection of Solana blockchain and artificial intelligence.
Circle has announced the launch of the Cross-Chain Transfer Protocol (CCTP), enabling USDC to flow natively across the Ethereum and Avalanche blockchains.
🧪 The logic behind the price rise today
The first cryptocurrency started today with a spurt to $29k, a rise of almost 6% in 24 hours. Let's try to reconstruct the logic of the market. Santiment analysts believe there are three reasons for such active growth:
The crypto market has long correlated with the S&P 500, but this year, as Santiment confirmed, the digital asset market is in the early stages of divergence.
For example, this time Bitcoin went up after yesterday's drop in the U.S. stock market. Such protective behavior in the crypto market promotes the inflow of new money.
In addition, the growth of BTC could be contributed by fears of the bankruptcy of First Republic Bank — its shares fell by more than 50% — as well as rumors that the organization would be transferred to the government. As we have said many times before, the banking crisis in the U.S. is not over and will continue as interest rates go up.
👇 It's not shitcoin; it's the stock of the 14th largest bank in the U.S.
Because of the rapid rate hikes, there has been an extreme reduction in the U.S. money supply. The nominal money supply fell by 4% and the real money supply collapsed by 8.6%, which is the most intense contraction since the post-war decline of 1946-1947, when it was minus 12%. An earlier analog is the Great Depression years of 1930-1933. There is no other historical analog to the pace of the current compression of the money supply in the U.S.
Traditionally, strong price action causes many liquidations and temporarily stimulates price growth. During the last 24 hours, a total of 27,094 traders were liquidated for a total of $76.60 million. The largest liquidation order occurred on Bybit and was worth almost $1.83M.
🔕 Altseason never came?
Right now, the Altseason index shows a value of 8 (the lower the value, the lower the probability of an altseason coming). Recall that the record high of the Bitcoin season was 6, which was recorded in 2021.
🛂 Government Ethereum
We continue to publish more and more facts about Ethereum. In the past, we talked about the beginning of deflation within the network after the migration to PoS, and we also discussed the high cost of transactions (remaining contrary to promises). This time we will discuss the localization of the network nodes because there is an anomaly here as well.
Right now, Ethereum is running on about 7,700 nodes, half of which are based in the US. Of these U.S. nodes, half are in a single data center in Virginia, which is 20 minutes from the White House and the CIA headquarters. Such a strange concentration of almost 30% of Ethereum nodes in one such strange place is still difficult to explain in any reasonable way.
👉 Opportunities
[1] 🔔 Events around #TORN
Events are piling up around #TORN that could provide strong growth momentum.
Chainway last week released a new tool for Tornado Cash users. The tool allows users to prove that their deposited funds were not from a list of wallets containing stolen or criminal funds without revealing their address and maintaining anonymity.
The court is likely to make a final ruling on the fate of Tornado Cash's lead developer in the coming days. This will largely determine the fate of the project.
In anticipation of this decision, the project is already showing growth of 2% in the last 24 hours.
[2] 🔔 Zilliqa (ZIL) prepares to jump
ZIL has not yet caught up with a strong correction, but it is still present. At the moment, the price is in the green zone relative to the previously broken resistance. According to the technical analysis of RLinda, if the trend reverses, the price may show a strong rally towards $0.0500 and $0.0700.
Strong support: $0.0310
Strong resistance: $0.0365
The specialist said that he expects the formation of consolidation or a false breakdown of support, with further growth in the direction of $0.0500.
[3] 🔔 Testing Alpaca Finance 2.0 products
Alpaca Finance is the largest platform for leveraged DeFi products. AF 2.0 is an updated protocol that consists of Money Markets and Leveraged Farming. Money Market will feature stake rewards, borrowing, and cross-margin usage. Leveraged Farming will be available later.
A total of $900,000 in ALPACA tokens (current price: about $0.2725) will be distributed to lenders and borrowers for a 12-week period after launch as rewards for using the site.
Week 1 - 2: 20,000 ALPACA per week
Week 3 - 12: 86,000 ALPACA per week
The conditions
The Money Market beta test will begin April 27 at 10 a.m. UTC, and is scheduled to launch three weeks after testing.
During the beta testing phase, the platform will support the following coins: BNB, BTCB, ETH, USDT, BUSD, and USDC. There may be others at a later date.
ALPACA rewards emissions will begin approximately 1 hour after Money Markets pools open.
Are you guys fastened to your seatbelts? We're going to the moon!
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