Crypto Weekly: Bitcoin Dropped Amidst the Struggle Between Alameda and Waves

Apr 11, 2022
08:04
2 min reading

Choise.com team

Over the last 7 days, Bitcoin has fallen by almost 10% and currently sits at about $42,000. Altcoins fell less significantly, but also turned out to be in a clear downtrend. And this is despite a positive news background that could be seen during the previous 2 weeks.

One of the hottest events was the confrontation between the Alameda Research fund and the Waves cryptocurrency project. It became known that Alameda used dishonest means to increase the price of Waves first and then push it down through the big short. This was facilitated by the spread of FUD news from the FTX exchange founder regarding the Waves’ USDN stablecoin. As a result, the asset dropped from $1 to almost $0.50. However, the USDN peg to $1 has already recovered again.

Also this week, it was revealed that the founder of Alameda Research and FTX, Sam Bankman-Fried, was ranked second in terms of his net worth ($24 billion) among all crypto billionaires. The founder of the Coinbase exchange, Brian Armstrong, follows him with his fortune of $6.6 billion. On the top of this list, there is the founder of the Binance corporation, Changpeng Zhao, with his fortune of $65 billion. Moreover, he was ranked 19th among the world’s richest people according to Forbes.

One of the CZ’s projects, Binance.US, has closed the first round of funding, raising more than $200 million at a $4.5 billion valuation. The received money will be used to expand the product line of the platform, as well as for marketing and educational initiatives.

Near Protocol has received a huge funding this week. The team managed to raise a $350 million investment, led by Tiger Global. The received money will be used to expand the number of project hubs and attract new developers. In addition, there was a rumor that Near Protocol was going to release its own USN algorithmic stablecoin. Against this background, the token value jumped by 25% and the capitalization exceeded $12 billion.

And one more investment round was closed. The Axie Infinity team got $150 million from major investors led by Binance. The money will be used to refund users after the hacker attack on the Ronin sidechain that resulted in $625 million loss. The project will disburse the remaining funds from its own budget.

In addition, the largest darknet marketplace Hydra was closed last week. The platform was ahead of many large crypto exchanges in terms of turnover. The German police confiscated all the servers and assets worth $23 million. This website’s share accounted for up to 75% of the entire turnover of the shadow market.

The crypto market has had almost no reaction to this news, except for rare exceptions. Bitcoin and altcoins were in a downtrend. Let’s take a look at the BTC chart and try to understand whether the situation will change in the coming days:

As we expected on Friday, the price of Bitcoin dropped to $42,000 and stopped there for a while. The weekly candle closed bearishly. In addition, buyers still do not try to buy back the price fall, which is a very bad signal.

At the beginning of the week, we are waiting for another drop all the way to $40,000. This is an intermediate support level, where a large number of orders can be concentrated. In addition, it is an important psychological level. If buyers fail to maintain it in the coming days, we may see a collapse to $37,000 by the end of the week.

In this case, the altcoin market may fall even more severely. This is indicated by the Bitcoin dominance that starts reversing. Meanwhile, the main attention will be focused on the largest altcoin, Ethereum, which sets the direction for the entire market.

This week can be very eventful for the BTC chart. Therefore, we expect to see high volatility, both up and down.