This Week in Crypto

April 21, 2023

As Spring comes just around the corner in the northern hemisphere, it appears that warmth is reaching the crypto market as well. While the overall sentiment may seem hopeful, we are taking a look at some of the major headlines that you should pay particular attention to. In this week’s episode of This Week in Crypto, we are taking a look at the following:

Key Points

• Bitcoin movement could indicate alt season
• Major whales enter accumulation mode
• EU parliament passes MiCA
• NEO & MXChats

Bitcoin Movement Could Indicate Alt Season

Is another rally market for altcoins — commonly referred to as Alt Season — around the corner? Key market data may be indicating that Alt Season is not too far away. After much excitement and debate, the Bitcoin Greed and Fear Index has reached a perfect neutral at 50. Over the past month, it has been between 60 and 67 level, indicating that the retail public is mostly greedy in Bitcoin.

The neutrality towards Bitcoin has been further supplemented by the drop in Bitcoin dominance level. The BTC dominance level has fallen by 4%, with additional funds flowing into Ethereum (ETH) and other altcoins.

However, the fall in BTC dominance may not necessarily indicate that people should lose interest in Bitcoin. The Bitcoin Reserve Risk Level has surpassed 0, recovering from a -58% since late 2021. For comparison, the bear market of 2020 witnessed the Bitcoin Reserve Risk level recovering from -61% level, then recover to 0, and reaching +487% at its top as the price of BTC rallied. Overall, BTC Reserve Risk Level at 0 could be interpreted as the potential end of a bear market, and the beginning of an incoming bull market.

Traders should take note that while key indicators are supporting a bullish narrative, any key events within the crypto industry and the larger macroeconomic market may result in sudden volatility.

Major Whales Enter Accumulation Mode

Bitcoin whale addresses that hold between 100 to 1,000 BTC have been selling off their Bitcoins for over a month. As of this week, that sell-off pressure has been stopped. Those wallets instead have begun accumulating Bitcoin, resulting in over 20,000 BTC net accumulation over the past 3 days.

Crypto enthusiasts and traders should pay particular attention during these times, as accumulation is often the most difficult part in crypto trading. Sudden price volatility may scare off buyers, or entice sellers. Always do your own research, and stay alert.

EU Parliament Passes MiCA

This week, the EU parliament has finally voted on Markets in Crypto Assets (MiCA), proposed back in 2020. With an overwhelming number of votes in support of the proposal, MiCA will come into effect in 2024. MiCA focuses on various aspects of crypto assets, ranging from requiring licenses and stricter measures for those operating crypto or blockchain businesses within the EU and its jurisdictions, to improved proof of reserve requirements for stablecoin issuers.

While MiCA will only take effect next year, there have been significant movement within the European financial community to prepare for full compliance. The larger Web3 community can expect the European landscape to bring both regulation and acceptance into crypto assets, and potentially see Europe as the next hub of Web3 innovations. Exciting times may be ahead.

NEO & MXChats

NEO miners rejoice! NEO delivery is less than a week away, as the partner company MatchX is looking at April 27 as the date of first delivery from its warehouses around the world. To celebrate, share information, and answer questions, MXC Foundation will host MXChats on Discord, at the usual time of 6pm CET.

We look forward to your participation, and we hope you are as excited as we are!