{"id":68331,"date":"2023-08-02T22:57:03","date_gmt":"2023-08-02T17:27:03","guid":{"rendered":"https:\/\/mudrex.com\/blog\/?p=68331"},"modified":"2023-08-03T11:54:47","modified_gmt":"2023-08-03T06:24:47","slug":"mudrex-crypto-market-outlook-1-7-august-2023","status":"publish","type":"post","link":"https:\/\/mudrex.com\/blog\/mudrex-crypto-market-outlook-1-7-august-2023\/","title":{"rendered":"Mudrex Crypto Market Outlook | 1-7 August 2023"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-medium-font-size\" id=\"h-synopsis\">Synopsis<\/h2>\n\n\n\n<ul>\n<li>Uncertainty over stablecoin protocols&nbsp;<\/li>\n\n\n\n<li>Bank of Japan\u2019s revamped yield policy<\/li>\n\n\n\n<li>Bills passed in US House Committee in favor of crypto<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/TOTAL_2023-08-01_17-41-32-1-1024x464.png\" alt=\"\" class=\"wp-image-68333\" width=\"768\" height=\"348\" srcset=\"https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/TOTAL_2023-08-01_17-41-32-1-1024x464.png 1024w, https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/TOTAL_2023-08-01_17-41-32-1-300x136.png 300w, https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/TOTAL_2023-08-01_17-41-32-1-768x348.png 768w, https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/TOTAL_2023-08-01_17-41-32-1-1536x696.png 1536w, https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/TOTAL_2023-08-01_17-41-32-1.png 1793w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><figcaption class=\"wp-element-caption\">Figure 1: Total Crypto Market Capitalization&nbsp;<\/figcaption><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\" id=\"h-key-observations\">Key Observations<\/h2>\n\n\n\n<p>The market has slipped into a downtrend. We can see that the market has been moving in a narrow range. The total market cap is hovering around the local support line of 1.13T and it may slip down to 1.11T if it does not hold the levels.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Weekly Crypto Market Outlook | August 1 - August 7 | Mudrex\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/ZkC7t4SVaFU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\" id=\"h-analysis\">Analysis<\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The stability of stablecoins is under question, yet again<\/strong><\/h2>\n\n\n\n<p>Recently, there was a security issue with CRV that put more than $100 million of users&#8217; funds at risk. This has made people question the security of stablecoin exchanges. CZ, Binance CEO mentioned that stablecoins may not always be as stable as they seem.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/1.png\" alt=\"\" class=\"wp-image-68334\" width=\"768\" height=\"348\"\/><figcaption class=\"wp-element-caption\">Figure 2: CRV\u2019s price action following the hack<\/figcaption><\/figure><\/div>\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/Screenshot-2023-07-31-123452.png\" alt=\"\" class=\"wp-image-68335\" width=\"609\" height=\"379\" srcset=\"https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/Screenshot-2023-07-31-123452.png 609w, https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/Screenshot-2023-07-31-123452-300x187.png 300w\" sizes=\"(max-width: 609px) 100vw, 609px\" \/><figcaption class=\"wp-element-caption\">Figure 3: CZ\u2019s tweet on the stablecoin space<\/figcaption><\/figure><\/div>\n\n\n<p>MakerDAO\u2019s DAI stablecoin seems to have everyone\u2019s attention!<\/p>\n\n\n\n<p>For reference, DAI is used heavily in DeFi. MakerDAO recently introduced a buyback mechanism for its MKR token, and MKR whales &#8211; notably crypto VC firm a16z &#8211; have been selling heavily into the rally. This has led to speculation about whether DAI is at risk, and there\u2019s more hints about this.<\/p>\n\n\n\n<p>MakerDAO recently raised DAI yield to 8% to attract more buyers. However, high yields in crypto are not without risks due to DAI&#8217;s collateral being mostly real-world assets.&nbsp;<\/p>\n\n\n\n<p>USDC is also another prospect owing to high yields offered despite the regulatory clearance and backing. They also rely on DeFi and could be what CZ may have been talking about.<\/p>\n\n\n\n<p><strong>Bank of Japan&#8217;s Yield Curve Flexibility<\/strong><\/p>\n\n\n\n<p>The Bank of Japan&#8217;s surprising decision to change its yield curve approach has caught markets off guard. Institutions that were benefiting from interest rate differences between Japan and other regions might now face higher costs and lower returns. The EU and US markets closed lower resonating the sentiment across the global markets.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/2.png\" alt=\"\" class=\"wp-image-68336\" width=\"768\" srcset=\"https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/2.png 991w, https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/2-300x159.png 300w, https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/2-768x408.png 768w\" sizes=\"(max-width: 991px) 100vw, 991px\" \/><figcaption class=\"wp-element-caption\">Figure 4: This depicts the historical trends of the yield cap band for the Bank of Japan<br><\/figcaption><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>US House Committees Approve Financial Innovation Act, considered a win for the Crypto Industry<\/strong><\/h2>\n\n\n\n<p>The US House Financial Services Committee passed a significant bill on July 26, 2023, with the US House Agricultural Committee passing it the next day.&nbsp;<\/p>\n\n\n\n<p>The bill, the Financial Innovation and Technology for the 21st Century Act, is a major win for the global crypto industry as it specifically addresses cryptocurrencies, giving power to the CFTC over digital commodities and clarifying the SEC&#8217;s jurisdiction over digital assets.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/Screenshot-2023-07-31-132139.png\" alt=\"\" class=\"wp-image-68337\" width=\"688\" height=\"764\" srcset=\"https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/Screenshot-2023-07-31-132139.png 688w, https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/Screenshot-2023-07-31-132139-270x300.png 270w\" sizes=\"(max-width: 688px) 100vw, 688px\" \/><figcaption class=\"wp-element-caption\">Figure 5: The Financial Innovation and Technology for the 21st Century Act Bill that got passed shows promise for the crypto industry.<br><\/figcaption><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-top-gainer-of-the-week-maker-mkr-up-by-23\">Top gainer of the week: Maker (MKR) up by 23% \u2b06\ufe0f<\/h2>\n\n\n\n<p>Maker\u2019s price saw a boost due to increased ecosystem activities as the Maker Governance votes to approve or reject the new Spark Protocol changes commence.&nbsp;<\/p>\n\n\n\n<p>This vote was a result of Phoenix Labs\u2019 proposed key adjustments to Spark Protocol DAI market parameters to enhance user experience. Additionally, being the governance token of Maker protocol and MakerDAO, has resulted in increased trading activity and demand for MKR.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/3.png\" alt=\"\" class=\"wp-image-68338\" width=\"768\" height=\"364\"\/><figcaption class=\"wp-element-caption\">Figure 5: MKR technical analysis<\/figcaption><\/figure><\/div>\n\n\n<p><strong>Opinion<\/strong><\/p>\n\n\n\n<p><strong>Fundamental Analysis:<\/strong><\/p>\n\n\n\n<p>There was an increase in interest for MKR because of the MakerDAO vote on the Spark Protocol. This caused more people to buy it to cast votes and the market turned bullish.<\/p>\n\n\n\n<p><strong>Technical Analysis:<\/strong><\/p>\n\n\n\n<p>This leg up means that shorters may prefer to stay clear of MKR for the moment.&nbsp;<\/p>\n\n\n\n<p>Oscillator indicators: 1 bearish, 8 neutral, 2 bullish<\/p>\n\n\n\n<p>Moving average indicators: 3 bearish, 1 neutral, 11 bullish<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-biggest-loser-of-the-week-toncoin-ton-down-by-14\">Biggest loser of the week: TonCoin (TON) down by 14% \u2b07\ufe0f<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/mudrex.com\/blog\/wp-content\/uploads\/2023\/08\/TONUSDT_2023-08-01_17-57-38-1024x464.png\" alt=\"\" class=\"wp-image-68339\" width=\"768\" height=\"364\"\/><figcaption class=\"wp-element-caption\">Figure 6: TON technical analysis<\/figcaption><\/figure><\/div>\n\n\n<p><strong>Opinion<\/strong><\/p>\n\n\n\n<p><strong>Fundamental analysis:<\/strong> Toncoin seems to be a great project but the lack of active publicity by the team does not translate well to the investors. This leads to most traders choosing to stay away from buying at this price range.<\/p>\n\n\n\n<p><strong>Technical analysis:<\/strong> TON has seen a dip over the past week, by the looks of the market movement bulls are wary of this token and bears seem to be comfortably in control.<\/p>\n\n\n\n<p>Oscillator indicators: 2 bearish, 8 neutral, 1 bullish<\/p>\n\n\n\n<p>Moving Average indicators: 10 bearish, 1 neutral,&nbsp; bullish<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\">Conclusion<\/h2>\n\n\n\n<p>The cryptocurrency market continues to be influenced by regulatory actions, and institutional involvements. The past week revealed the uncertainty looming over stablecoins and how large institutions prepare in the wake of the yield rates proposed by the Bank of Japan. The passing of the Financial Innovation and Technology for the 21st Century Act bill in the US shows signs of promise for crypto adoption. The trading activity in the market suggests that there will be period of consoldation before moving up.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis Key Observations The market has slipped into a downtrend. We can see that the market has been moving in a narrow range. The total market cap is hovering around the local support line of 1.13T and it may slip down to 1.11T if it does not hold the levels. Analysis The stability of stablecoins [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":68347,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":""},"categories":[1082],"tags":[],"_links":{"self":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/posts\/68331"}],"collection":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/comments?post=68331"}],"version-history":[{"count":5,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/posts\/68331\/revisions"}],"predecessor-version":[{"id":68346,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/posts\/68331\/revisions\/68346"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/media\/68347"}],"wp:attachment":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/media?parent=68331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/categories?post=68331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/tags?post=68331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}