News updates May 08, 2022
1. Bitcoin price target now $29K, trader warns after Terra weathers $285M ‘FUD’ attack.
Doom and gloom continues for Bitcoin markets as Terra’s Do Kwon brushes aside a “deliberate and coordinated“ attack on its TerraUSD and LUNA tokens.Bitcoin (BTC) prepared for a rare bear feature to return on May 8 after an overnight sell-off took the market ever closer to January lows.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to $34,200 on Bitstamp, recovering to trade around $500 higher at the time of writing.
The pair had seen brief support around the $36,000 mark, but this gave way as thin weekend liquidity added to the volatility.
Bitcoin liquidations themselves were limited, however, as market sentiment had long expected a deeper pullback after a tumultuous week on stock markets.
Data from on-chain monitoring resource Coinglass countered 24-hour liquidations for both Bitcoin and Ether (ETH), running at around $80 million.
2. Bloodbath Continues as Bitcoin Dumped to Lowest Price Since January.
The crypto market is once again covered in red, with bitcoin dropping to a multi-month low.
Bitcoin’s situation worsened once more in the past 24 hours, and the asset fell to its lowest position since January 24. Somewhat expectedly, the alternative coins are in an even worse shape, with massive price losses from Terra, MATIC, CRO, and others.
As of now, bitcoin struggles at $34,500, and it’s about 4% down on the day once again. Additionally, its market capitalization has declined to around $660 billion.
3. Bitcoin Fear and Greed Index Deep in ‘Extreme Fear’ as BTC Dumped to $34K.
Extreme fear is back in the bitcoin landscape following the recent correction, which, data shows, could have been prompted by whales.
With bitcoin’s price continuing to lose value, the popular Fear and Greed Index has dropped into an extreme fear territory once again. In fact, the metric hasn’t been in such a poor state since late January, when the asset’s price dropped to $33,000.
4. What Is Dollar-Cost Averaging for Crypto Investments, and How to Use It in This Bear Market:
With the cryptocurrency markets currently in a bearish period, one investment strategy discussed heavily is Dollar Cost Averaging (DCA). For those new to investing/trading, a common question might be what is Dollar-Cost Averaging exactly, and how do I use it for crypto investments? This article will explain what Dollar-Cost Averaging is and how you can utilize it during this bear market.
*What Is Dollar-Cost Averaging for Crypto?*
Dollar-Cost Averaging is an investment strategy utilized in crypto and stock markets where investors purchase an asset or a group of assets at regular intervals, leading to a lower overall cost basis.
Dollar-Cost Averaging takes the emotion out of the investment and focuses on contributing a set amount of funds during a specified period regardless of the price of the assets.
An example of Dollar-Cost Averaging for crypto could be purchasing $50-100 of cryptocurrency every paycheck you get (every two weeks), regardless of the current price of Bitcoin, Ethereum, XRP, or any other cryptocurrencies.
Keep in mind that Dollar-Cost averaging works over a long period for assets that increase in value. DCA doesn’t save you from a declining investment where it’s better just to cut your losses.
Since Bitcoin, Ethereum, XRP, and other cryptocurrencies outperformed every other asset over the past five years, Dollar-Cost Averaging is advantageous for crypto investments. It’s much safer than putting your life savings in crypto at one time since you can end up timing the entry position wrong.
Did you know that 401k plans use Dollar-Cost Averaging for their investments? Since contributors set a certain amount of funds out of their salary to contribute every month, they all utilize DCA to achieve a lower cost basis for the appreciating assets.
*How to Use Dollar-Cost Averaging in Crypto?*
As mentioned earlier, the best way to use the Dollar-Cost Averaging investment strategy for crypto markets is to set aside a certain amount of funds every two weeks to 1 month and invest it into any of the top 5 or top 10 cryptocurrencies.
The best part about this investment strategy is you won’t be as worried about the short-term price volatility of Bitcoin and other cryptocurrencies. With the way crypto markets usually move, it’s a long and painful few months of a bearish trend followed by significant price growth in a short period. Your lower overall cost basis and lack of emotional attachment to your investment will make it easier to hold through the bear market.
Those who believe Bitcoin is king should stick to BTC. Those who believe in NFTs and smart contracts could stick to Ethereum, BNB, or Solana. Those who believe in the future of DeFi, Yield Farming, and Stablecoins could look at Avalanche or Terra Luna.
Any of the top 10 cryptocurrencies have tremendous long-term potential and will likely continue their price growth. The $100k BTC is yet to be achieved, and the market is still far from its peak.
While this year has been rough for cryptocurrencies, one could see significant price growth over the next 3-5 years by exercising the DCA investment strategy.
5. Utah Governor approves of blockchain and digital innovation task force
After nearly a three-year-long discussion about establishing a task force to oversee blockchain and crypto initiatives, the governor of Utah, Spencer Cox, signed a bill to create the Blockchain and Digital Innovation Task Force.
The Utah State Legislature first saw the introduction of the house bill (H.B. 335) in early February 2022, which took nearly two months to pass through several senate, house and fiscal actions before finally being signed by Governor Cox on 24th March.
6. Apartment Sold for Bitcoin in Portugal After New Regulation Allows Property Deals in Crypto
An apartment in Portugal has changed hands, with the buyer paying directly in cryptocurrency in a reported first for the country. The home was purchased for 3 bitcoins without conversion to euros, under a new regulation permitting real estate deals with digital currencies.
7. Google Forms Web3 Team — Sees Tremendous Potential, Demand for Crypto Tech Support
Google is establishing a Web3 team within its cloud unit, noting that “it is a market that is already demonstrating tremendous potential.” A Google executive explained: “We’re providing technologies for companies to use and take advantage of the distributed nature of Web3 in their current businesses and enterprises.”
8. Bank of Uganda Issues Warning Against Cryptocurrency
While cryptocurrency adoption is rising globally, some governments remain skeptical of the nascent market. Uganda is just one of these countries, with the administration choosing to remain on the fence as the central bank releases a new warning against the use of crypto.
9. Sony Partners With Theta Labs to Launch 3D NFTs for Its Spatial Reality Display
Sony Group Corporation has revealed it has partnered with Theta Labs in order to launch 3D non-fungible token (NFT) assets. The upcoming NFTs will be crafted for the Sony Spatial Reality Display and are designed for three-dimensional viewing.
