Can crypto overcome the correction? Crypto Investor's Weekly 27.02-05.03

Crypto fell 5% in an hour, the SEC is on a war footing and a major crypto bank frightens the markets. ?

Hello again, it’s time to tuck into your weekly digital asset briefing.??

Now, anyone with their eye on the news will see that America is hogging the crypto headlines again. No surprises there. The fact of the matter is that Gary Gensler simply loves making big statements to get in the press.??

We don’t want to get in the way of anyone having their 15 minutes of fame, even if they are the chairman of the United States’ top regulator. What this does show is that the SEC is not only taking a tough line in the courts, they’re also getting savvy with how to use the press to further their stance on digital assets. That doesn’t make it any easier to hear, but it might help to frame the shifting narrative could shift if this continues.??

Beyond that, Binance can’t seem to shrug off their legal troubles as both the world’s regulators and crypto hacks stick their noses deeper into the exchange’s affairs. The crypto world saw another nail slammed into the FTX coffin as one of the top dogs at the collapsed firm plead guilty to a host of criminal charges. Silvergate, a prominent crypto bank, is sending shockwaves through the industry after it announced funding difficulties.??

Could crypto’s barnstorming beginning of the year be under threat? Prices dropped mid-week and now it's down to the bulls to defend prices and keep the momentum going.?

EXCLUSIVE: Inside a professional investor’s personal portfolio?

For any of you that missed my latest interview in Switzerland’s top financial newspaper, Handelszeitung, we’ve got an English language link here for you all to enjoy.??

I've been investing in digital assets for over a decade now. In this interview with veteran journalist Harry Büsser, I break my silence on my personal portfolio for the first time.??

Here’s a chance for investors of all levels to look at the portfolio of a professional and learn about their strategy. Full blog article in English. ?

Chart of the week ?

You probably already know about the more bullish narrative in the crypto markets this year just from looking at the prices. But there are other ways to confirm that positive sentiment. According to CryptoCompare data, the total assets under management (AUM) for digital asset investment products saw an increase of 5.25% in February compared to the month before.??

Before we go any further, what is AUM? AUM is the total market value of investments that are managed by a person or entity on behalf of clients. This can take into account bank deposits, mutual funds and discretionary management where investors sign over authority to a company to trade on their behalf.??

To put things into context, this AUM is the third monthly increase we’ve seen and is the highest since May 2022. This is a great sign because it shows that investors are starting to regain their trust in crypto and keep their money in the industry for months on end. AUM for Bitcoin increased by just over 6% and Ethereum-based products by nearly 2%. These products now account for 70.5% and 24% of the market share respectively. ?

This week’s crypto prices ?

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March typically hasn’t been a great month for prices. In fact, Bitcoin only hit double-digits gains twice in ten years during the month. And it seems like March is keeping true to form with the markets facing some downward pressure as this week progressed.??

Bitcoin fell about 5% in just one hour during the night on March 3, reaching its lowest levels for two weeks. Some analysts are suggesting that crypto bank Silvergate’s recent troubles are to blame. Analysts will keep an eye on potential contagion from Silvergate’s funding issues, with some reporting that this could prevent BTC from hitting its $25,000 target. Bears could drag prices back down to the $20,000 mark if they manage to take control of momentum.??

Ether shares the fate of much of the rest of the market, in that it is to an extent tied to BTC’s price action. The second largest crypto also dropped around 5% on Silvergate news, with some analysts suggesting this could add to skittishness around the upcoming Shanghai update, in which 17.4 million ETH could re-enter circulation. If bears take control, we could see a correction all the way down to $1250, but bulls could push back to $1700. ?

Tweet of the week ?

Source: Twitter ?

NFT summer meant that even your grandmother knew about how some JPEGs took the online world by storm. Then, everything went silent when prices dropped. But NFTs have been rapidly picking up momentum in 2023, as the market showed a stretch of prolonged bullishness. The Bitcoin blockchain even launched its own NFT series!?

But earlier this week, over 1,010 NFTs were sold for a total of $18.6 million, according to Nansen data. Many of these were blue-chip NFTs from what are considered the cream of the NFT crop, including Bored Apes, Otherdeed and Azuki.??

It wasn’t that collectors suddenly went off their newly purchased assets, it’s that one investor, Jeffrey Huang, sold off thousands of NFTs in one sitting. It’s suggested that Huang sold his NFTs to receive millions in tokens from Blur, an NFT marketplace that rewards its early users.?

Crypto news ?

Binance’s Asset Shuffling Eerily Similar To Maneuvers By FTX?

When you’re the world’s largest crypto exchange in a largely unregulated market, it is easy to make up the rules as you go. In its latest backroom maneuver, Binance transferred $1.8 billion in stablecoin collateral to hedge funds, including Alameda and Cumberland/DRW, leaving its other investors exposed.?

Full article: Forbes?

Robinhood Subpoenaed by SEC Over Brokerage’s Crypto Business ?

Robinhood Markets Inc. said the Securities and Exchange Commission was probing its cryptocurrency business, in the latest signal that the regulator is drilling deeper into virtual asset platforms.?

Full article: Bloomberg ?

FTX's Singh pleads guilty as pressure mounts on Bankman-Fried)

((Nishad Singh, the former director of engineering at now-bankrupt cryptocurrency exchange FTX, pleaded guilty to U.S. criminal charges on Tuesday, and agreed to cooperate with prosecutors' investigation into FTX founder Sam Bankman-Fried.?

Full article: Reuters ?

?SEC Chair Gensler Says Crypto Exchanges May Not Be 'Qualified Custodians'?

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler pushed back on the idea that crypto exchanges could be safe qualified custodians for investment advisers?

Full article: Coindesk ?

Coinbase cutting ties with Silvergate forces crypto hedge fund to find a new bank

A total of five crypto companies ended their partnership with Silvergate Bank on March 2 after a series of lawsuits and investigations against the bank.

Full article: Cointelegraph ?

The markets did everyone a favour by turning green for a few months. But no good deed goes unpunished and now it looks like we could see a bit of volatility.??

So, take a deep breath and hold on because it’s probably time to develop your sea legs. Besides, riding the peaks and troughs of the waves in price is all part of that crypto fun.??

Let’s see what happens! Catch you next week.?