WOW! The past week was an absolutely humbling week in the markets with sell-offs of 20-30% in some cases. Especially Coins, which could be seen as a security, were particularly affected here. I therefore keep my personal portfolio and that of our company mainly in Ethereum, DeFiChain and Bitcoin, which are unlikely to be seen as securities here in the US.

With all this, there are a few essential things to keep in mind this week. Here are the 6 I’m watching in particular:

  1. Binance/Regulator Fallout? Are there any more delistings? More forced sales? An absolute disaster would be action against Tether, which is the main player in the crypto space that benefits from regulatory arbitrage. Also DCG. At the moment there is a lot of uncertainty which, in my view, will not calm down but rather increase. Especially on Tuesday, where there are Court Hearings on Coinbase and Binance.

  2. Ethereum Strength: Despite the SEC’s crackdown on some altcoins, Ethereum has seen a significant uptick in staking, both among retail and institutional investors. This could drive up the price of Ethereum. A key indicator is the percentage of Ethereum that is being staked, known as the staking ratio. It is currently at 16%, and if this value moves up, it could affect the price of Ethereum. I stand by my prediction from earlier in the year that Ethereum will outperform Bitcoin after the Shapella upgrade (starting in April/May) and the ETH/BTC price will likely break out of its descending parallel channel.

  3. US CPI on Tuesday: inflation is expected to be at an annual rate of 4.1%, up from 4.9% the previous month. Core CPI, which excludes the more volatile food and energy prices, is expected to have risen 5.3% year-over-year, up from 5.5% in April.

  4. FOMC on Wednesday: the central bank is widely expected to pause rate hikes next week and keep the federal funds rate steady in the 5-5.25% range, with the CME Group’s FedWatch tool predicting a 74.8% probability of a rate pause.

  5. Selling $1 trillion worth of bonds for debt ceiling? The buyer of last resort is the FED. This means there is no additional liquidity, which in turn could put even more pressure on the markets.

  6. MetaChain layer on DeFiChain in testnet: very cool, a lot can happen now! Price has held up well at least now in the last few days despite the drama in the markets. Am curious to see how this develops further.

Ultimately, you can use such setbacks well for long term re-buying as long as you hold a long term time horizon.

Let’s see what the week brings.

Good luck to all of us!

CEO CakeDeFi.com

PS: Greetings from a Crypto Meetup here in Italian Alps. Back to Singapore on Wednesday.

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CEO CakeDeFi.com