Crypto Week: A Break Before the Slump

After tech giant Apple Inc. attacked the crypto market by demanding that the market pay 30% of the revenues generated using Apple’s ecosystem, led to the stop of  NFTs being sent via the Coinbase wallet using the iOS application. Apple attributes this percentage as the amount of money it needs to pay for the gas fee (an Ethereum blockchain transaction fee) to send NFTs. Coinbase compared such a demand to the commission charged for sending emails via the Apple platform.

SushiSwap’s new CEO, Jared Grey, says that the exchange has 1.5 years of treasury runaway left that is needed to maintain the exchange operational. The exchange needs $5 million per year to cover operating expenses. So, the project is now considering granting all staking revenues of xSUSHI tokens to the project itself. The xSUSHI token is issued for clients that made staking with the project to receive a reward that is generated from transaction fees of the decentralized exchange. So, staking with xSUSHI would make no sense from the financial point of view, but would support the project during the long-lasting market correction.

A falling market cap of crypto assets reveal the real problem of the decentralized crypto economy. This economy may function only in the friendly environment of continuous rally. When the rally reverses, negative implications will surface to make crypto enthusiasts suffer. Even such sheer and respectable projects like SushiSwap are in distress during such downturns.

The Federal Reserve (Fed) continues to raise interest rates and is likely to keep them high for a long period. As long as the American economy demonstrates sustainability, the Fed may continue with aggressive monetary actions. So, positive incoming macroeconomic data from the United States spurs demand for the U.S. Dollar. For a while now, market players have been waiting for the recession to tame the Fed’s hawkish moves. But if the macroeconomic data in the U.S. remains strong, there are no chances that borrowing cost would decrease. Investors’ reaction to the positive ISM data in the U.S when stock indexes went down and treasuries yields rose made it clear that the American economy is strong and further interest rate hikes by the Fed are inevitable.

BTC prices continue to move towards the $10,000 per coin target with a possible short up spike to $19,000. That would weaken the bulls and clear the way for Bitcoin prices to decline below the resistance level at $15,500 per coin.