A Week in Crypto (5 Nov 2023)

Welcome back and congratulations on pursuing your journey of crypto awareness and education! This week, there is no shortage of interesting news in the crypto space from Michael Saylor’s 10x Bitcoin prediction, to Solana’s 500% rebound, and a record setting NBA NFT purchase followed by the Crypto Fear and Creed Index, our Weekly Token Watch, and the Weekly Crypto Meme Corner. Enjoy!

Michael Saylor: BTC to 10X

“You can never have too much BTC” - Michael Saylor, CEO of MicroStrategy
Source: Coindesk

During a recent CNBC interview, Michael Saylor, the CEO of MicroStrategy (MSTR), reaffirmed his enthusiastic stance on Bitcoin (BTC). While Saylor's bullish sentiment toward Bitcoin is well-known, he outlined several specific catalysts that are poised to impact the cryptocurrency market in the short to medium term while propelling BTC on a path toward at least 10x in 2025.

Saylor pointed out a significant upcoming shift in supply and demand dynamics. Currently, Bitcoin miners are collectively selling around $1 billion worth of Bitcoin each month to cover their operational expenses. However, an event called the Bitcoin Halving, expected to take place in April 2024, will cut this available supply in half, reducing the miners’ monthly sales to approximately $500 million. Simultaneously, Saylor highlighted the potential impact of forthcoming spot Bitcoin exchange-traded funds (ETFs), which are likely to introduce additional buying pressure.

Another catalyst Saylor highlighted pertains to accounting regulations. New rules are set to allow institutional investors to include Bitcoin holdings on their balance sheets at fair market value. According to Saylor, this change has the potential to encourage more corporations to adopt Bitcoin as a treasury asset, thereby creating long-term shareholder value.

Saylor also addressed current developments within the crypto industry, including the prison-bound Sam Bankman-Fried, a former cryptocurrency prodigy. In Saylor's view, the crypto industry needs to transition toward greater regulation and oversight to mature further. This evolution would entail moving away from the multitude of cryptocurrencies, particularly those considered unregistered securities, as well as from unreliable crypto custodians. Focusing on Bitcoin, a well-established cryptocurrency with clear use cases, could lead to substantial growth and potentially a tenfold increase in value, according to Saylor.

Saylor's insights underscore the evolving landscape of the crypto market and emphasize the significance of regulatory changes and shifts in the supply and demand dynamics. It's important to stay informed about these developments to navigate the cryptocurrency space effectively.

SOL Rebounds 500% in 11 Months

“I just bought SOL” - Arthur Hayes, Former CEO of BitMEX
Source: Cointelegraph

Arthur Hayes, the former CEO of BitMEX, recently disclosed his acquisition of Solana's SOL tokens, even though the digital asset had already rebounded by an impressive 500% from its December 2022 market low, hovering near $8 at that time.

Hayes' bullish stance on Solana is fortified by several factors, including the recent predictions and developments in the cryptocurrency market. Notably, the asset management firm VanEck, overseeing a substantial $76.4 billion in assets, foresees a remarkable 10,600% price surge for SOL by 2030. This optimistic outlook is grounded in Solana's potential to gain market share from Ethereum, the current king in terms of market cap within the layer-1 blockchain domain.

Furthermore, an analyst from FieryTrading has speculated that since Solana has breached the resistance level at $38, it could potentially experience an additional upswing of approximately 150%.

The month of October 2023 showcased Solana's strength, with SOL prices surging by a remarkable 80% and recently peaking at about $46.75, marking a 14-month high. Hayes appears to have initiated his SOL purchase around this level, expressing confidence in the asset's future ascent. His positive outlook could be attributed to Solana's ongoing efforts to enhance scalability, positioning it as a strong contender in the blockchain space.

However, it's essential to remain cautious, as technical and fundamental signals suggest the possibility of a 30% price decline in November from its current $41 price point. SOL's daily relative strength index (RSI), a key momentum indicator, has reached overbought levels not witnessed since January 2023. Historically, such overbought RSI readings have led to price corrections or consolidation.

A fractal analysis points to a pattern of overbought RSIs preceding substantial price corrections, often ranging from 35% to 50% throughout 2023. In this scenario, the next potential downside target appears to be around the support level established between June and November 2022, near $30.25, reflecting a decline of roughly 30% from the current SOL prices. Intriguingly, this level aligns with SOL's 200-3D exponential moving average (200-3D EMA), represented as the blue wave on the chart. Should SOL breach this threshold, it may prompt bears to target the cryptocurrency's ascending trendline support, situated around $26.

Arthur Hayes' investment in SOL underscores the dynamic nature of the cryptocurrency market, characterized by both opportunities and potential risks. Staying informed about the latest developments and trends is crucial for navigating this evolving landscape.

NBA Star’s NFT Breaks His Trading Card Record

Victor Wembanyama’s NFT sells - towering over physical trading card price
Source: Decrypt

We discussed the rising popularity of NFTs in one of our “Crypto 101 Series” articles. Proving NFTs are still hot during a relatively cold market, a one-of-a-kind Ethereum NFT trading card featuring NBA rookie sensation Victor Wembanyama achieved a remarkable sale of over $110,000 on Thursday. This digital collectible, part of the officially licensed fantasy basketball game Sorare NBA, sets a new precedent, seemingly surpassing the record price for one of Wembanyama's physical trading cards.

The exceptional "Unique" digital trading card of Victor Wembanyama, who currently plays for the San Antonio Spurs and was the first overall pick in the recent NBA draft, ultimately found a buyer at 61.182 ETH. This translates to approximately $110,120 at the time of the auction's conclusion.

Comparatively, the highest recorded sale for a physical Victor Wembanyama trading card occurred in August, with a price of $67,333, including the buyer's premium, through the Goldin auction platform. This noteworthy sale pertained to a "pre-rookie" card released ahead of Wembanyama's official NBA debut. The NFT auction by Sorare coincided with Wembanyama's impressive performance for the Spurs in recent days.

This record-setting digital collectible sale underscores the immense talent and popularity of Victor Wembanyama as a rising star in the NBA. It also emphasizes the inherent advantages of digital Sorare cards over traditional physical sports collectibles, notably the concept of proven ownership and practical utility.

Sorare, known for its original fantasy soccer game introduced in 2019, remains its flagship offering. Over time, the platform expanded its portfolio to include league-specific games, such as the National Basketball Association and Major League Baseball. Each of these games integrates NFT trading cards, which players can utilize within the game to construct their lineups. Successful gameplay can lead to rewards in the form of cryptocurrencies and additional NFTs.

Collectively, Sorare has facilitated NFT sales exceeding $713 million across its platforms, based on data from CryptoSlam. In 2021, the company secured a significant $680 million Series B funding round, valuing Sorare at $4.3 billion.

Sorare NBA previously set a record in the NFT space in February with the sale of an NFT associated with Giannis Antetokounmpo, the Milwaukee Bucks star, for an impressive 113.9 ETH, equivalent to roughly $187,000 at that time.

The soaring interest and demand for NFTs, especially within the realm of professional sports, reflect the evolving landscape of digital collectibles and the significant value they hold in the eyes of collectors and fans.

Crypto Fear and Greed Index

Token Watch: Weekly Top Movers Within the Top 100

TokenFi (TOKEN), Coin #493, 782.0%, $0.03451074

SafeMoon (SFM), Coin #583, -72.8%, $0.00005070

Crypto Meme Corner

Source: Google Images

While many of us are back to work tomorrow following the weekend, have no fear - The Token Mindset Team will be back next week to bring you more crypto news! Thanks for reading and have a great week!

Stay educated. Stay informed.

-The Token Mindset Team

Found value in this newsletter? Help spread crypto awareness, share the knowledge with a friend, and invite them to join the Token Mindset community! https://tokenmindset.beehiiv.com/subscribe