Post-Merge Turmoil: Weekly Newsletter #018
Ethereum is down by -22.32% after the Merge and the SEC is knocking on its door. Is there a silver lining?
Last week was pivotal in the cryptocurrency space. We got off to a good start with a successful Ethereum Merge, but the joy was short-lived as other events swooned the market.
Today, I will take you through the most impactful headlines of the last seven days, as well as One Button’s performance during that time. But first, here is the weekly market update.
The market reacted negatively to the U.S. CPI data update on Sep 13, and everything went down, despite the bullish crypto news. Bitcoin hit a 3-month low before regaining some value and is currently trading at $19,148.
At a looping -21.56% for the week is Ethereum, which is currently traded at just $1,342. The third largest loss is on Solana, with -14.41%. Dogecoin is again in the top 10 market cap list.
The Merge Is Completed. The SEC Radar Is Ringing But Founders Remain Optimists.
After a long wait, on September 15th, the “Merge” of the Ethereum network was successfully completed. This finalizes Ethereum’s transition from proof-of-work to proof-of-stake consensus, resulting in a 99.95% reduction in energy consumption.
This is the first step of Ethereum 2.0’s roadmap that includes the Surge, Verge, Purge, and Splurge phases coming next, according to Ether’s founder, Vitalik Buterin.
The market did not react as many crypto enthusiasts expected, and the false hopes were one of the reasons for the price crash in the last week. Additionally, now the U.S. SEC is hinting that the new model of Ether would put the asset under their jurisdiction as security.
Coinbase Against Politicians: New Tool To Measure Daily Sentiment
The second-largest cryptocurrency exchange, Coinbase has announced a new feature on its platform. Users will be able to see which US politicians are “crypto-friendly” with a new in-app tool, according to CEO Brian Armstrong’s tweet.
The tool displays how various members of Congress rate their crypto sentiment, which ranges from “very positive” to “very negative.” That will put all politicians under the crypto community spotlight, and words toward the industry will be taken more seriously.
The White House Release Its First-Ever Crypto Framework
The White House has just released its first-ever framework for crypto regulation in the United States, citing crypto’s potential for misuse while noting its growing role in global finance. The framework outlines how the financial services industry should evolve in order to facilitate borderless transactions and combat fraud in the digital asset space.
- Investors Add $74M to Crypto-Focused Valkyrie Trusts
- FTX Is in the Lead to Buy Crypto Lender Voyager Digital’s Assets
- CFTC Already Preparing to Be Crypto Watchdog, Behnam Tells US Senators
- US Treasury Explains How Americans Can Recover Crypto Locked in Tornado Cash
- South Korea Seeks Arrest of Terraform Labs Founder Do Kwon
- Possession of Bitcoin Still Legal In China Despite The Ban, Lawyer Says
- Vietnam, Philippines, India, China Among Top Countries for Crypto Adoption
- Dogecoin Becomes Second-Largest PoW Cryptocurrency
Our August 2022 Report is out! Read the PDF here for an in-depth overview of crypto and OB Capital in August.
One Button performance
Aggregated return of OB Capital vs. BTC and ETH
One Button Capital’s AI was successful in hedging against the post-merge turmoil last week. Ethereum went down by -22.32%, while Bitcoin lost -9.64%. OBC traded at just -4.28%, further increasing its market dominance over the top 2 digital assets in the last 30 days.
Top trading strategy
In a bearish week, it is not a surprise to see two of the best risk-management strategies leading this list. Horizon, with -4.08%, and Ascendant, with -5.09%, performed well in handling the crypto crash between Sep 12 and Sep 18, 2022.
Top-performing market pairs
Last week, the Chiliz (CHZ) cryptocurrency saw a large trading volume, and the OBC investors that took advantage of it saw nice gains. Performer v2 was able to return +10.73% on average in the CHZ: USDT pairing. Two trading strategies returned over +4% against XRP: USDT.
September 10, 2022
- Improved email and in-app notifications templates related to bot errors
September 07, 2022
- Improved data security for sensitive data
September 03, 2022
- Resolved bug with missing disclaimer on the portfolio allocation for “lite” view
Sadly, history has repeated itself, and September looks like it could be one of the worst months of the year in crypto. The silver lining comes in the successful Ethereum Merge, which opens the door for future blockchain developments, usage growth, and price rise.
Meanwhile, another topic we have been paying close attention to in the last several months is crypto regulations. Now that the White House has released its first official framework for digital assets, it is time to see a spike in mass adoption.
Perhaps the best news for this week is the internal performance at One Button. Our AI managed to once again prove its superiority to traditional investment strategies, relying on nothing else but price data.
CEO at One Button Capital
This is not financial advice. This newsletter is strictly educational and does not provide investment advice, solicit the purchase or sale of any assets, or encourage readers to make financial decisions. Please use caution and conduct independent research.