Litecoin Miners Lock in MWEB as Risk Assets Stand on the Precipice

Risk assets recovered slightly over the week, but remain mostly flat in anticipation of today’s potentially trend-setting FOMC meeting. If rate hikes are within expectations, a medium to long-term recovery is well in the cards.

Meanwhile, Litecoin miners locked in the much-anticipated MWEB upgrade, making Litecoin the most fungible crypto on the market while achieving an improved level of privacy similar to the traditional banking model.

Let’s dig in.

Dear readers,

The purpose of this newsletter analysis is to provide context to current events and cryptocurrency markets. It is released every Monday and Wednesday. I am not perfect and this is not a science — nor is this newsletter a signals service. While I cannot promise perfection I do my best to be honest and transparent.

Thank you for reading.

Feel free to contact me with feedback on contact@chrisoncrypto.com.

Paul Tudor Jones: “It’s Hard not to want to Be Long Crypto”

In an extensive CNBC interview, Billionaire hedge fund manager Paul Tudor Jones said that we are now in “uncharted territory”, since the Federal Reserve had only eased monetary policy in previous economic slowdowns and financial crises.

Read the full article here!

Technically speaking

Ethereum in no-man’s land

Ethereum/Dollar increased 1.7% since last Wednesday, after experiencing four consecutive weeks of negative price-action.

The coin printed a new local low of $2,700 before bouncing in the first week of May. At the time of writing, ETH/USD is up 3.4% as risk-assets await directional bias from the highly anticipated FOMC meeting later today (6 hours).

In other words, ETH/USD is situated in no-man’s land as macro-conditions are in flux. But as noted last week, flows have told a different story and continue to do so. Indeed, on-balance volumes have continued to indicate strong accumulation trends, which are in contrast to the coin’s bleed-out price-action.

At the moment, risk markets are comparable to a tightened coil filled with potential energy, ready to burst and unleash a powerful force in one direction. Typically, outsized moves are exacerbated in altcoins, and ETH/USD would be no exception.

Polkadot Enters Value Area

Polkadot/Dollar entered the value area described last week. DOT/USD currently exchanges hands at $15.30, up 7.7% from last week’s low of $14.

Accompanied by on-balance volumes, the easing of sell-side pressure is palpable, and opens the door to a medium to long-term relief rally alongside risk-assets. This assumes a macro ranging environment, the veracity of which would be subject to weekly revisions. It’s all prospective and in large part dependent on the broader crypto market.

Litecoin Prepares Thrusters

Litecoin/Dollar held monthly support after briefly tapping $94 and is showing signs of robust macro accumulation.

On-balance volumes are a testament to this kind of behaviour. Litecoin value buyers tend to have the same convictions as bitcoin-buyers, with a significant cohort forming part of the so-called ‘legacy coin’ holders. Of course, the project is anything but ‘legacy’, having officially locked in mimble-wimble extension blocks ( MWEB) on Tuesday (May 3). At the time of writing, 90% of miners successfully signalled for the upgrade.

It might be difficult to admit it, but Litecoin is officially technically superior to bitcoin. While no amount of scrutiny can alter this development (besides Bitcoin adopting Litecoin’s technology again), the assets fates are inextricably linked regardless.

p.s. This is my opinion. It is not financial advice.

Originally published at https://mailchi.mp.

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Journalist-turned crypto-writer & analyst; forging the narrative, stacking sats.

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Chris on Crypto

Journalist-turned crypto-writer & analyst; forging the narrative, stacking sats.