🐼 China Ready to Conquer the Metaverse

Happy Monday dear subscribers! Following last week’s ETF frenzy, let’s see what’s cooking!

In today's bulletin, we are covering:

• Surfing the Market, with analysis about BTC drop and ETH

• Don't miss the News about Fidelity's ETFs and China’s Metaverse

• Ape Terminal is under the spotlight.

• Short article about Round Numbers Theory

• Our selection of the best Gems on X

Here are some thoughts about the Bitcoin drop:

• This correction is mainly triggered by the massive dumping of Grayscale (GBTC):

• It has been dumping around half a billion daily via Coinbase

• Most likely people liquidate their assets there in order to flow into the new ETFs due to cheaper fees

• As you can see on the left side of the table, while Grayscale was charging a wild 1,5% the new ETF's average a 0,2%

• And when we are talking about big numbers, this is a massive difference

• So in the short term is creating some confusing and cascade selling effect

• But is not necessarily a bearish event by any chance, as most of this capital will flow into other Bitcoin ETF products

ETH starting to breach down the local horizontal support on the $2,400 range. If doesn't recover before daily close we might be due to a further correction towards the $2,100 range:

SEC Delays Decision on Fidelity's Ethereum ETF Proposal Until March 5

The Securities and Exchange Commission (SEC) has extended the deadline for a decision on Fidelity's proposal for a spot Ethereum exchange-traded fund (ETF) until March 5.

Fidelity applied for the Ethereum ETF in November, citing a court ruling that questioned the SEC's rationale for rejecting spot crypto ETFs while allowing futures-based products.

The SEC's move to delay the decision was anticipated, with analysts noting that crucial dates for consideration are likely in late May.

• SEC extends the deadline for a decision on Fidelity's spot Ethereum ETF proposal until March 5.

• Fidelity applied for the Ethereum ETF, referencing a court ruling questioning the SEC's basis for rejecting spot crypto ETFs.

• Delay was expected, with analysts pointing to crucial dates likely in late May for further consideration.

• SEC recently authorized 11 spot bitcoin ETFs, sparking industry speculation about the potential approval of a spot Ethereum ETF.

• Fidelity and BlackRock entered the race for a spot Ethereum ETF, aligning with the approval of ether futures ETFs.

Last week, the SEC approved 11 spot bitcoin ETFs, raising speculation about the possibility of a spot Ethereum ETF approval.

China Establishes Working Group for Metaverse Standardization

China's Ministry of Industry and Information Technology (MIIT) has created a working group with representatives from government, academia, and tech corporations, including Huawei, Ant Group, Tencent, and Baidu, to push for standardization in the metaverse sector.

The goal is to formulate basic standards, including metaverse terminology and reference architecture, to foster collaboration, reduce redundant costs, and drive industrial development.

The MIIT emphasizes the need for consensus among academia, industry, and research sectors to prevent the metaverse concept from drifting away from its practical value.

• China establishes a working group, including tech giants like Huawei, Ant Group, Tencent, and Baidu, to drive standardization in the metaverse sector.

• MIIT aims to set industrial standards, including metaverse terminology and reference architecture, to reduce redundant costs and promote collaboration.

• Lack of consensus on the metaverse definition among academia, industry, and research sectors is hindering industry development, says the MIIT.

• China plans to encourage non-fungible tokens and decentralized applications, supporting Web3 development despite a cryptocurrency ban.

• Local governments in China, including Sichuan and Shandong provinces, have pledged to develop the metaverse industry, setting ambitious market size targets by 2025.

Despite a cryptocurrency ban, China plans to boost non-fungible tokens and decentralized applications, pledging support for Web3 development.

APE TERMINAL

This monday we are looking at a launchpad project for a change,

APE TERMINAL is one of the newest platforms designed to allow investors the chance to get in pre-sales also known as IDOs (Initial DEX offering) of different projects.

I bring  this project to your attention today due the fact that its first six presales are averaging a ROI around 15x so far. Being the highest SatoshiVM with 286x ROI at ATH and the lowest BRC App with 4.7x instead.

As you already see there is not a lot of sample to get into strong conclusions, but there is a promising start.

The way it functions is possible to opt for any APE Terminal pre-sales before creating an account or doing KYC.

To register to an IDO just connect your wallet, and subscribe at the registration period, then a snapshot will be taken and a raffle will determine the winners to make payments.

Then is  when the winners will have to create an account to be able to purchase the assigned won allocations.

The chances of winning in the lottery depends on the value of the tokens in your wallet, and interaction with their other products or socials.

In the coming month they are introducing a variety of ticket sizes from one project to the next one, widening the range of potential participants.

The project is still in early stages and so far the YieldApp feature is in early access closed beta.

Some other upcoming features for the Super APP are:

• Tading terminal on-chain. With limits, DCA, Stop-Loss.

• Sandwich Automation

• Copy Trading

• Presale Sniper

• Mobile App

Ape Terminal Uses MEV-tech to generate yield from sell side slippage automatically. And their transaction algorithm has been designed to make the order don’t go through unless it generates a yield.

Upcoming presales:

The next one is  BeFi Labs; an advanced multi-wallet DEX and chain login for trading BRC20 assets with the focus on the high UIUX of CEX. (Subscription ends 4th Feb 8:00 UTC.)

After that, Lends is coming next, a cross-chain lending solution with access to supply and borrowing rates through the Arbitrum ecosystem.

There isn’t much more information available that I could get my hands on about them, but I invite you to dig more by yourself in their official website or twitter

Round Numbers Theory

It's no coincidence that we first notice or remember numbers that often end in 0 or 00 or 000, etc. This is due to the so-called theory of round numbers. Let's see what it means and how it influences trading.

The theory of round numbers states that the human mind is wired to visualize and think more easily in round numbers. These are those that end in 0, such as 10, 20, 50, 100, 500, 1000, 10,000, 50,000, 100,000, 1,000,000, etc. Numbers ending in 5 are also commonly used for smaller figures, like 5, 15, 25, 75, etc. But the stronger ones are those ending in 0.

How does this influence trading? Traders are people and therefore influenced by this theory that leads us to think first in round numbers. Generally, when projecting profit, we think about winning 1000 USD, 5000 USD, not 1243 USD. 

When looking at charts to make decisions, the magic of round numbers appears. If the price approaches a round level, for example, 100, it starts to experience an increase in volume because more attention is drawn from traders. History indicates that these round numbers often act as resistance and support, and when they are overcome, a significant upward movement occurs due to having cleared that hurdle. The same happens if it can't break through; it becomes a tough resistance and sends the price into a deep correction.

Let's look at this chart from Carol Osler, a professor who studied the topic in the 1980s.

It shows how this affects trading strategies, where the majority of Stop Loss and Take Profit orders are placed at prices ending in 00 and 50. 

A clear example was Bitcoin's peak at 20K in 2017, and often we can see an anticipation of these numbers because investors tend to get ahead due to the self-fulfilling prophecy, selling something before reaching the exact round number. 

With this, I hope that the next time you come across a round number on your chart, you consider it as a relevant level of resistance/support to make better decisions.

Amazing thread on great L1 plays

Key Insights on $TAO

Bitcoin ETF volume is not a joke

Don’t sleep on this market, lots of opportunities to come, see you next week!