Hi, WePower community,
As already common for our industry, a number of events happened during the past few weeks. However, a few had a sizable impact on the macro market and the overall sentiment. Again, regulatory events are the main driving force for the market volatility.
- SEC asked for a public feedback on CBOE’s request to change its listing rules and allow the crypto exchange traded fund followed by the agency’s broad ETF rule proposal to streamline the ETF approval process. This attracted enormous amount of interests and feedback from Crypto fans to urge them to approve it. The fact that SEC is soliciting feedback from public has started to turn the sentiment from bearish to neutral. Should this event take place, the potential for upside is huge.
- On July 16th, the CEO of the world’s largest asset manager, BlackRock Inc, claimed that the company has formed a working group to study blockchain and cryptocurrencies even though they are still being cautious about investor demand. This immediately moved the market from $6300 to $6600 level for BTC price.
As the market was digesting the news, it finally broke the $7000 ceiling to reach $7400 level on the morning of July 19th. BTC as a funding channel between Crypto and Fiat has traditionally been a leading signal for bullish run such as the bullish run for tokens in late March and early April. - On July 19th, the U.S. congressional hearing from House Committee on Financial Services had a much bigger impact than that is from House Agriculture Committee. The Financial Services Committee hearing was centered around treating crypto as a new form of money, which overall received a lot of resistance in consideration of Dollar power, federal reserve’s tool for adjusting monetary policy and tax evasion.
The harsh tone during the hearing, especially from Congressman Brad Sherman (D-CA), has dampened the market along the way as the hearing progressed. Market dropped from $7400 level to $7300 level. But the momentum continued and BTC price reached a new local high of $7980 today (07.27).
In the macro market, these events had short term impact on sentiment, but nothing fundamentally changed from one month ago. Considering that the token’s market liquidity is still very dry and lagging ETH price in this run, we still maintain short to middle term bearish view.
On WePower side, it has remained relatively stable against the BTC value with a short momentum from 600 to 650 Satoshi level along with the BTC run. It got pushed down hard to 590 Satoshi with the congressional hearing. The great article from WePower co-founder Arturas explains the platform launch, first auctions, how meetings in Seoul meeting brought great buying power, and the momentum on the 19th witnessed by a lot of natural buying power, which aggressively took asks to 750 Satoshi level.
The liquidity has improved a lot ever since, despite some profit taking which drove the price down. But the natural volume increase is notable, probably from the new liquidity sources in Korean community with continuing positive effects on the token dynamics.
Overall, as WePower team keeps delivering and exploring new markets such as Korea, the token is well positioned to outrun the rest of the market.
All the best,
Ricky
