The G Code triple double is our weekly snap newsletter covering everything bitcoin, crypto, trading and G code community related. Each week we aim to cover 3 critical market insights and 2 coins we are keeping tabs on as well as share some trades our community have executed during the week.
This week we take a look at the market’s reaction to the Federal Reserve's announcement on rates, the unusual conspiracy around Binance this week and the increasing interest in AI Tokens.
Market insights this week:
As predicted The Fed last week posted that they were raising interest rates by .25% in line with expectations. This somewhat predictably had a bullish effect on the market as the crypto markets pumped with some impressive gains shared in our Discord community. Even in reaction to Jerome Powell’s post announcement comments the market seemed to rally. This market optimism seemed to have been encouraged by the general feeling that J Powell’s comments were dovish. Everything considered, they could be and the Fed could be nailing the ‘soft landing’ they have been talking about. Just to keep things real though we thought it was worth pointing out that the U.S treasury has hit its debt ceiling and the United Kingdom is showing signs that they are struggling and it is perhaps unlikely that Fed will pause rate hikes this year. Eyes still remain fixed on Feb 14 as the CPI numbers get released.
One of the interesting market insights this week was Binance. Firstly, earlier this week its was shared that Binance was loosing its ability or ‘suspending’ its USD deposits and withdrawals on its global platforms. Not a great sign. On the positive side, this kind of news probably would have dumped the market back in November, but for now the market seems to have defended the 22,500 zone well. Additionally, on-chain activity and Eddy, one of our community OG’s pointed out that there was some huge buying on Binance in January where BUSD was used to consistently buy BTC. Which does seem slightly suspicious, as it could certainly be interpreted as Binance itself buying Bitcoin, for their own sake, to cover their own BUSD reserves. Or could be seen as a move to sure up their balance sheets ahead of audits, which they seem to be stalling on. So could the recent pump had been fake? The charts would probably indicate not, however its worth considering that indeed price action could cool off now.
Finally, the seemingly hot topic on everyone’s feeds – AI. In particular AI tokens. In very general terms AI tokens are a type of cryptocurrency that use AI to enhance various aspects such as security, user experience, scalability, and more. They can also be used to power AI-based projects and applications, such as decentralized exchanges, image and text generation services, and AI-based investment protocols. The use of AI in these tokens aims to increase automation and build trust in crypto systems and AI tokens have been on a tear as of late with the likes of FET and AGIX pumping between 50% to 130% respectively in the last 7 days. In light of the ChatGPT release and the new found AI hype tokens and projects such as these are definitely ones to watch.
Two DeFi projects we are keeping tabs on this week:
AAVE: AAVE is one of those quiet and consistent achievers, besides taking a hit like the rest of the market in 2022 AAVE has managed to still deliver an upgraded version of their protocol and expanded onto another 3 chains. Key points to consider is their recent V3 launch which has paved the way for liquid staking derivatives on Ethereum. This plus their potential stablecoin release this year and the fact that JP Morgan utilised the Ethereum based protocol in the first DeFi transaction has me thinking AAVE may have a solid year ahead.
ALGO: Algorand (ALGO) has a decent reputation as a Layer 1 but this reputation has risen lately since being selected at the end of last year as the Bank of Italy’s public blockchain platform of choice. In addition to this the Algorand Foundation has partnered with a range of educational institutions across India to drive Web3 adoption. Systematic government adoption here may be placing ALGO very nicely over the long term.
As per usual our trading community has picked up some nice gains over the last week:
The boss Don Pablo executing a nice trade on BTC:
One of our resident OG's CharlieCartel with a nice short:
And the XRP Bot just consistently doing its thing: