Bitget Hot Takes (September 19 - September 25)
Bitget Hot Takes is the exclusive weekly newsletter series by Bitget Academy, the 360-degree onboarding guide for all crypto enthusiasts.
Bitget Hot Takes last week can be found here.
- The U.S. Federal Reserve (FED) raised interest rates by 0.75%.
- Although the news is kind of priced in already, equities and Bitcoin still reacted negatively to this new rate hike.
- BGB was the only one to end the week with green.
- Ethereum price continued to drop after The Merge.
- Market maker Wintermute hacked for US$160 million.
- Walmart and Disney start to embrace NFTs.
The Only One To End The Week With Green
Markets are on an endless downward spiral post-rate hike, with the SP500 seeing the fifth consecutive week of losses and wiping out all its gains from 2021. Similarly, the global crypto market has lost its US$950 million cap since September 18, showing no signs of reclaiming this mark soon.
Regardless of the market movements, BGB Holders were able to lock in a cumulative return of nearly 1.07 by Sunday, which translates to a 7% increase in returns for the last seven days. BGB experienced some turbulence until mid-week last week, but picked up the momentum since September 22 and gloriously ended the week with a profit compared to all others’ losses.
BGB has, time after time, proved its ability to resist unfavourable market conditions, and even demonstrated its ability to thrive when the sentiment is extremely bearish. That alone is a decent reason to hold BGB as a hedge for your wealth. Unconvinced? Below are our BGB reports for the last months:
Correction Will Hurt
For the first time since the beginning of September, Bitcoin has three consecutive days of losses and an all-red weekend. It is possible that we may see another red day today, so pay attention to your positions consciously.
BTC Price Chart
Sharing the fate with Bitcoin are ProShares’ Long Bitcoin Strategy ETF (BITO), Grayscale Bitcoin Trust (GBTC), and other pro-crypto funds and/or companies. Surprisingly, the biggest losses belong to the one and only ProShares’ BTCUSDT">Short Bitcoin Strategy ETF (BITI) at -68.75%.
With the (highly possible) months of correction to come, Bitcoin mining can expect a harsh winter. Even though Riot Blockchain stocks (RIOT), who owns 0.032% of the total Bitcoin supply, experienced a 4.32% increase in value at the end of the week, it’s still not enough to compensate for losses of the week before. That is not to say that stock prices of another big mining firm, Marathon Digital Holdings (MARA), continued to slump further down (-1.27%) and its Texas-based data centre provider Compute North has recently filed for Chapter 11 bankruptcy. But it’s not all doom and gloom for Bitcoin miners: Icebreaker Finance launches a US$300 million lending pool on Maple Finance to support Bitcoin mining companies in North America and Australia.
A key factor responsible for the bloodshed of the flagship cryptocurrency is rising levels of correlation between (1) Bitcoin and NASDAQ and (2) Bitcoin and bonds, which is currently at its peak within the one-year time frame.
Source: Kaiko Analytics
Meanwhile, data from Arcane Research demonstrates that Ethereum’s newly forked tokens (ETHW, ETF) have been performing way worse than Ethereum since The Merge. Even the notable ETC was trading with more losses than ETH. You heard it right - all are recording non-stop losses since September 16 (one day after Ethereum’s conversion to PoS), but ETH locked in the lowest level of losses compared to the other three.
Source: Arcane Research
And the whole crypto market was in shock when crypto market maker Wintermute announced an attack on its DeFi operation unit on September 20. The amount of stolen funds was revealed to be US$160 million, and the team is offering a 10% bounty for the hacker. The Wintermute team and its DeFi partners have confirmed the integrity of funds, and even deposited more funds into the associated pools for users who want to withdraw.
What Is The Silver Lining(s)?
Despite what’s yet to come, we can still trust in the wide adoption of crypto via NFT’s popularity. New big names to enter the space include Walmart and Disney. The retail giant Walmart, also considered to be an essential element of American culture, will soon provide DC Comic books that are linked to NFTs redeemable on the WAX blockchain. This move can significantly encourage businesses to test out their NFT strategy because it is now more ubiquitous than ever before.
And talking about Disney… Previously on September 10, the conglomerate’s CEO publicly disclosed their interest in Metaverse and eventually put on a job description on LinkedIn for a Principal Counsel in Emerging Tech and NFTs. Expect the “Next Generation Storytelling Consumer Experiences” from The Walt Disney Company.
And Governor of The Golden State vetoed the Assembly Bill 2269 by State Congressman Tim Grayson, which basically requires all crypto businesses to apply for an operating licence. As per an official statement by Gavin Newsom’s office, “a more flexible approach is needed [...] to address trends and mitigate consumer harm”, thereby allowing California to remain the important innovative hub of the U.S.
The Latest Bitget News
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