Investment review for the 28th week of 2022

Stocks

• ETF SPY: -0.91% (-3.54$).

Inflation in the US rose even higher in June – up to 9.1% y/y. It turned out to be noticeably higher than expected, so investors began to expect an increase in the Fed’s interest rate by 1% at the next meeting. Today, these expectations have subsided, and the most likely scenario is an increase of 0.75%, which is already priced in, so the stock market did not fail much. It is believed that in June, we saw the peak of inflation, as oil prices continue to fall, and this is not the limit – Saudi Arabia will increase production by 4 million barrels per day.

The pretty good company reports also help the market: 60% say higher earnings per share and growth in overall revenue. In addition, analysts’ forecasts significantly exceeded the reports of Pepsi, Visa, UnitedHealth and Citigroup.

Bank reports this week of America, IBM, Johnson&Johnson, Netflix, Tesla and many more. The dynamics in the reports of the largest US companies will show the current state of affairs in the economy and how high the risk of a recession is.

Cryptocurrencies

• ADA Cardano: +5.81% (-0.92$);
• BNB Binance Coin: +13.99% (+$4.99);
• BTC Bitcoin: +8.51% (+5.71$);
• DOT Polkadot: +10.54% (+0.81$);
• ETH Ethereum: +30.09% (+18.63$);
• NEAR Protocol: +18.17% (+1.28$);
• SOL Solana: +19.86% (+3.11$).

Most coins showed good growth, so the cryptocurrency market’s capitalization exceeded 1 trillion. In addition, Ethereum showed very significant change – the transition to the Proof-of-Stake algorithm is progressing well on test networks, and the transfer of the leading blockchain is scheduled for the end of September. The event is significant since the transition of Ethereum to PoS opens the way for further upgrades with increased scalability and lower fees. Furthermore, it will allow decentralized application developers to actively use the blockchain and attract more new users, who will also use cryptocurrencies for various purposes.

It is also worth noting the news about the participation of the Polygon blockchain project (“second-level network” on Ethereum) in the Disney business accelerator. The MATIC cryptocurrency has grown by more than 30% in a week.

We made a small purchase of BNB – the cryptocurrency shows itself no worse than bitcoin in a bear market, and in a bull market, it can grow more substantial like an altcoin.

Precious metals

• Gold (PAX Gold ): -1.25% (-3.99$).

Gold is in oversold territory on the daily and weekly charts, but pressure from the Fed’s interest rate and rising dollar index remains strong.

Deposits

• UAH ( Monobank 9.22%): +0.00% (+0.00$);
• BUSD ( Binance USD 10-13%): +0.21% (+0.60$).

Week 11.07-22.07.2022 (No. 28)

Name of the asset (group)	For 2022, %	11.07.22 USD	Portfolio share, %	Week,USD 07/16/22	USD profit	Profit, %
INVEST. PORTFOLIO USD	-19.35	1976.84	100.00	2019.11	28.53	1.43
MONEY IN RESERVE, USD					total:
Share ETF SPY	-1 8.68	388.67	19.66	385.13	-3.54	-0.91
Deposite BUSD Binance USD	5.38	285.85	14.46	286.45	0.60	0.21
Deposite  Monobank UAH	-2.22	785.36	39.73	785.36	0.00	0.09
Precious metal PAXG Pax Gold	-6.42	319.69	16.17	315.70	-3.99	-1.25
Crypto AD Cardano	-6 0.90	15.88	0.80	16.80	0.92	5.81
Cryptobnb  BinanceCoins	-47.73	21.92	1.11	40.65	4.99	13.99
Crypto BTC Bitcoin	-47.23	67.10	3.39	72.81	5.71	8.51
CryptoDOT  Polkadot	-70.92	7.71	0.39	8.53	0.8 1	10.54
Crypto ETH Ethereum	-56.37	61.9 1	3.13	80.54	18.63	30.09
Crypto NEAR Protocol	-58.25	7.07	0.36	8.35	1.28	18.17
Crypto SOL Solana	-72.89	15.68	0.79	18.79	3.11	19.86

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Bitcoin exceeds $ 22,000, while the cryptocurrency market capitalization is $ 1 trillion

 As part of an uptrend that began after the publication of inflation statistics in the United States last week, Bitcoin reached and overcame the $22,000 mark.

Meanwhile, altcoins outperform the first cryptocurrency as Polygon surges over 13% and Ethereum surges around 8% to top the $1,500 mark briefly. The growth of world market capitalization exceeded $1 or 3%.  

Bitcoin: Observations

Glassnode notes that the BTC market has had the most potent capitulation since 2011.

The market also saw the most significant redistribution of BTC.

At the moment, about 45% of all BTC holders are at a loss and no longer sell as quickly as before – the situation resembles periods of bottom formation in the past.

So far, the activity of whales in BTC has been practically at zero over the past month.

According to QryptoQuant, miners have had a mega capitulation on the market and a flurry of BTC sales over the past month.

Altcoins: Observations

Wallets with a balance of 1,000 – 100,000 ETH have been accumulating the coin since May.

Extreme spike in XRP trading volumes on Friday – 18.7 billion XPR traded in just 1 hour.

Activity on the Ethereum, BNB Chain and Solana networks has dropped significantly.

The Shiba-Inu team has launched a burn portal to help solve the problem of the mass supply of SHIB tokens. As of June 29, 2022, over 400 trillion tokens have been burned to limit collection.

Analyst opinions

Market participants believe it is too early to say the worst is over for the industry as the crypto market heads into a long winter that could last longer as more negative news comes in.

Market experts have also said that investors should avoid catching falling knives and understand the fundamentals of tokens before investing.

Satvik Vishwanath, co-founder and CEO of Unocoin, says investors need to learn how to dodge the falling knife in a bear market – “it is essential to understand and study the market on a global scale”.

He also noted that judging tokens could be pretty tricky, but understanding the underlying technology’s usefulness and command can be helpful.

“Investors who bought tokens after the project was fully launched saw more stable returns.”

While the short-term picture for the crypto market looks hazy as more projects may fail and go bankrupt, the long-term outlook is bright and constructive, others say.

A few more crypto projects could go bankrupt, especially from the DeFi segment, which is built around high yields, says Khalilullah Baig, co-founder and CEO of Koinbasket.

“We will also see tougher rules,” she adds.

According to market trackers, the cryptocurrency market may disappoint even more shortly. As a result, they suggest that high-risk investors might consider market-leading gaming and Metaverse projects.

“The typical decline in a bear market is nearly 70% from its highest point,” Satvik says. “For long-term investors, this seems like a great opportunity to average their costs and avoid the wrong investments.”

On the other hand, KoinBasket ‘s Baig sees the final leg of a 30% correction during the quarter and says the market may remain in its current range for the near future.

“Investors should focus on Tier 1 projects that are available at a hefty discount from their recent peaks like Bitcoin, Ethereum, Polkadot, Chainlink and others,” she added.

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