Why BTC and ETH took us down?

Hey guys! We hope you're okay. The buidlbee crypto community is here again. The market is storming, but it's also opening up new opportunities. We will explain here what happens, why it happens, and what you should pay attention to.

Here's what you'll find in today's letter:

• Why the price of BTC has fallen sharply;

• FTX is once again being fiddled with;

• Why the recent Ethereum upgrade failed;

• Bulls chasing bears;

• The BNB price may jump up;

• Possible EthereumMax (EMAX) dump;

• Our fresh draw!

And now let's take a quick look at the main news of the day (all the interesting stuff is next):

• Merit Circle is launching the subnet Beam, focused on web3 games.

• Donald Trump has launched a second series of NFTs.

• The price of BTC has fallen to around $29,000, and the price of ETH is below $2,000. The market capitalization decreased by 4.5% to $1.187 trillion. Due to the fall, 75,000 traders were liquidated, and $249 million worth of positions were liquidated (83.88% of long positions).

• DeFi protocol SafeMoon made a peace deal with the hacker who stole about $9 million. He will send back 80% of the stolen assets and keep 20% as a "reward." The company will drop all charges in return.

• Serbian police seized Do Kwon's $2.2 million luxury apartment, where the co-founder of bankrupt Terraform Labs is believed to have been hiding from Interpol for six months.

• Solana (SOL) and Bonk (BONK) tokens built on this blockchain have already lost more than 10% of their prices.

• Intel is ending production of the new Blockscale 1000-series ASIC chips, designed for mining.

😲 What happened to the price today?

This morning, the crypto market rapidly collapsed by 4%: the BTC price, after consolidation around $30,300, dropped sharply to $29,000, while Ethereum rolled back from recent highs above $2,100 to around $1,980.

There are two versions of what happened:

• According to Bloomberg, it is not only America that can put pressure on the crypto market: today negative UK consumer price data was published, according to which the UK has the highest inflation rate in Western Europe (above 10%). This is very high inflation and will require a tightening of monetary policy in response.

• During the day, there was some suspicious whale activity. So an unknown whale sent 300,000 ETH worth $627 million in two transactions to the Coinbase cryptocurrency exchange. In the afternoon, another whale sold 16,000 $BTC ($500 million) on Binance. Many ordinary traders worry that such sales by whales, who are often insiders, occur before bad news.

• Coinglass data showed that these sales pushed the market down and caused the liquidation of long positions worth ~$200 million. The crowd en masse expected crypto to continue growing, but even the slightest price pullback led to a cascade of liquidations and consequently to a sharp dump effect. By the way, Ethereum holders suffered the most:

🤷‍♂️ What's wrong with Ethereum?

Much has been written about the pros of Ethereum moving to PoS consensus while focusing on greater environmental friendliness. The second reason cited was that it would make the network cheaper to transfer. The second Shanghai upgrade has happened; let's check what has changed in terms of gas prices.

The average gas fee on the Ethereum network is now ~56 Gwei, which is far from the lowest. Here are the typical fees on the network:

• A typical ETH transfer costs up to $2.5.

• ERC20 token transfers cost ~$6.

• Uniswap exchange — $17.

• Selling NFTs on OpenSea — $8.

• Clearing coins through Tornado Cash — up to $116 (deposit and withdrawal).

Even though Vitalik Buterin and the entire Ethereum team promised cheaper transactions after switching to PoS, even after six months, nothing has changed for the better. But a future bull market that increases activity on the network will make Ethereum transactions even more expensive.

 🌌 The Ripple Phenomenon

XRP is currently the most popular altcoin in South Korea, with trading volumes far exceeding other cryptocurrencies. This abnormal interest in Ripple has been held in this region for several months in a row, which is unusual. Gradually, Ripple is becoming an unofficial regional cryptocurrency, which is a completely new phenomenon in the crypto world.

You can also get access to exclusive analytics. The private letter "Deep analysis and market insights" is coming out every Saturday. Our Chief Analyst shares valuable and practical information. All you need are three referrals! ☝

👉 Opportunities 

[1] 🔔 $FTT is the focus of interest

The Tribe Capital investment fund is interested in restarting FTX, a possibility previously announced by the current crisis manager of this bankrupt exchange. Tribe Capital met with FTX's creditor committee to discuss an as-yet unofficial plan to acquire the exchange.

The official creditor committee of FTX has already told the press that at the moment there is no decision to sell the exchange, but negotiations are underway. This news caused the exchange token #FTT to increase by 10%; now the growth of the token has slowed to 5%.

Even if you're not a fan of short-term speculation on such news (because the negotiations continue, in the short term there will be such news for sure) buying this asset in the long term is also interesting. Obviously, in the event of a restart of the exchange, it will give a great $FTT pump.

[2] 🔔 Getting NFTs from ThirdWeb

ThirdWeb is a comprehensive developer tool that accelerates teams building web3 apps, games, tokens, NFTs, marketplaces, DAOs, and more. The project has raised $29.3M in funding from Haun Ventures, Coinbase Ventures, Shopify, and others.

ThirdWeb has launched a free NFT mint on the Polygon network. NFT is available to those who have deployed any contract on the Ethereum, Polygon, Avalanche, Arbitrum, or Optimism network through any service between January 1, 2022, and April 1, 2023.

There are two different ways to redeem a prize:

1. You will be sent a placeholder NFT once you have opened the pack. At a later date, you will have your prize airdropped directly into your wallet (the following prizes will follow this method: CPG Genesis NFT, thirdweb pro early access NFT, 1 MATIC, 5 MATIC, 0.1 ETH, 1 ETH).

2. For some prizes, you will receive an email with instructions on how to claim or receive your prize (the following prizes will follow this method: 1K AWS Credits, Quicknode Credits, Lexica AI Art Pass, Club IRL NFT, and Consensus 2023 Two-Day Pass).

[3] 🔔 The BNB price may correct and then jump up

In March, the price of Binance Coin (BNB) began to fall: it broke through the $320.5 level, then fell to $306.0 and switched to a flat.

Then, at the end of March, there was an unsuccessful attempt by BNB to break out of the flat. But already in April, the coin succeeded, and the price reached $320.5 (and even higher). Also, the price started trading inside the rising channel, where it broke through the level of $341.5 and reached the resistance line.

Technical analyst Walter Moon believes that Binance Coin is trading near a support level, and the price could correct to that line and then bounce up to the $355.0 level.

[4] 🔔 A possible EthereumMax (EMAX) dump

EthereumMax (EMAX) is up 40% after Ohio Congressman Warren Davidson mentioned the token during a hearing on the potential firing of SEC Chairman Gary Gensler. The price of EMAX rose to $0.000000003743.

Last year, EMAX had a similar 126% pump, after which the price fell to the above range (as of April 2023).

In October 2022, the SEC accused Kim Kardashian of illegally promoting the EthereumMAX project. Amid these allegations, the token's exchange rate jumped from $0.000000004232 to $0.000000009605 in just 24 hours. And the company was also sued.

Answer a quick question and get a chance to win ETH tokens.

What will happen to the Bitcoin price next❓

Stay strong and hang in there, frenz! We're keeping our fingers crossed for you. See you tomorrow!

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