DAILY CONQUEST ISSUE #079
Actionable insight into today’s fast-moving crypto markets.
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Overview
- Could the Merge be a traders’ trap?
- Markets: Bitcoin suffers while altcoins climb..
- Ethereum developer saves Avalanche from ruin.
- Crypto’s Queen Elizabeth’s tribute.
Good morning Fam,
With all the hype surrounding the Merge, could it be a trap for professional traders to make a quick profit?
Let’s explore.
The Merge: A buy the rumor, sell the news event? Part 1 of 2.
First off, what is a “buy the rumor, sell the news” event?
In simple terms, it’s when traders buy an asset in anticipation of price gains before a significant development, in this case, the Merge. Experienced traders then sell the asset into large amounts of buy pressure before or after the event. A large portion of selling collapses price, leaving the professional cohort with the gains and the less experienced with the bags.
For example, when Coinbase (COIN) announced a partnership with Blackrock, traders pulled a similar stunt, leaving unsuspecting speculators with empty bags.
High-resolution chart
Now that you know what a “buy the rumor, sell the news” event looks like on a chart. On Monday, we’ll explore and weigh the various elements of the Merge that could influence price before and after the Merge.
Tune in on Monday for Part 2; don’t be left with the bags!
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BTC/USD 1D
Bitcoin continues to grip the $19k support level while altcoins climb the charts. Why is Bitcoin struggling? The recent White House report calling for further research on the impact of crypto mining could contribute to questions surrounding the viability of bitcoin mining’s impact on the environment.
With Ethereum switching to Proof-of-Stake, a significantly less impactful approach to consensus, the bitcoin price appears to reflect the current sentiment. BTC completed the daily candle up 0.14% to $19,319.
High-resolution chart
ETH/BTC 1D
ETH price has gained an extraordinary 68% since mid-June ahead of the Merge. In addition, the price appears to have broken through a resistance level at the 0.081 mark. Can Ethereum continue its run post-merge, or will there be a sell-off?
High-resolution chart
White House to ban crypto mining? The Office of Science and Technology Policy arm of the White House released a report calling for further research into the energy impact of crypto mining by the Environmental Protection Agency and Department of Energy. The information will help create standards based on the industry’s impact on the environment and electrical grids.
Avalanche fixes a doomsday patch. An Ethereum team lead, Peter Szilagyi, recently released a report of a vulnerability that could have taken down the entire Avalanche Network in late March 2022. Szilagyi warned the Avalanche team, who patched the vulnerability soon after. Avalanche held $9 billion in assets at the time. Phew.
Algorand upgrade. Algorand introduces State Proofs onto its mainnet, increasing performance from 1,200 to 6,000 transactions per second (TPS) without compromising security or scalability.
News Tidbits:
- DeFi protocol New Free DAO experienced several flash loan attacks yesterday, resulting in a loss of $1.25m. Token slips 99%.
- Mysten Labs raises $300m series B led by FTX ventures.
- Umami Labs approved for a Circle pay account. Token up 25%.
- Rage Trade, an ETH perpetual swap, is live.
- Rocket Pool introduces rETH incentives available through Balancer. RPL jumps 30%.
- Animoca Brands raises $110m led by Singapore-backed investor Temasek.
Unless you’re living under a rock, you probably heard that Queen Elizabeth II passed away yesterday at the age of 96.
She had a long run of 70 years in power; RIP Queen.
So, how did the cryptoverse react?
Embarrassingly, by creating a myriad of Queen Elizabeth NFTs and tokens (below). As funny as it may be, events like these make me realize that we are still early and have run to mature.
Stay classy Fam. 🍻
Gabriel M.
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