First Mover Asia: Metaverse ETFs Underperform Gaming ETFs; Cryptos turned red

Public interest in the metaverse continues to grow, but less so in metaverse ETFs. Does crypto belong to everyone?

Hello. Here’s what happens:

Price: Bitcoin and most other cryptos go back in the red.

Insights: Metaverse ETFs are struggling to keep up the game of ETFs.

Technician Opinion: The rise in BTC appears to be limited despite the short support.

Prices

Bitcoin (BTC): $ 29,982 -3.4%

Ether (ETH): $ 2,030 -4.7%

The biggest winner

There are no winners in CoinDesk 20 right now.

The biggest loser

Asset Teleprinter Return DACS sector
internet computer PCI −9.4% Computing
filecoin CANDLE −8.3% Computing
Kosmos ATOM −7.7% Smart contract platform

Bitcoin and other cryptocurrencies are weak

It didn’t last long.

A day after bitcoin cut a week -long losing streak, the largest cryptocurrency by market capitalization and other major cryptos were back in the red on Monday.

Bitcoin has recently fallen more than 3% in the past 24 hours and has fallen for seven consecutive weeks. However, it spends most of the day near or above the significant psychological level of $ 30,000. “Over the past 24 hours, we’ve seen six to eight weeks of consolidation in sales,” Mark Connors, head of research at 3iQ Digital Asset, told CoinDesk.

The performance of Bitcoin and other cryptos was in line with stock markets, which fell slightly on Monday and have fallen since last fall as inflation and supply chain issues continued to rise and investors became more risk averse. The tech-heavy Nasdaq lost more than one percentage point on Monday.

Such growing caution initiated last week by the collapse of the stablecoin terraUSD (UST) and the space signal that supported it, further shaken altcoins last week. On Monday, AXS and AVAX recently fell 12% and 8%, respectively. SOL fell more than 6%.

Ether, the second -largest crypto by market capitalization, fell more than 4.6%, despite holding above $ 2,000.

“In equities, you lose almost a year of returns, so [there was] a quick reset as the Fed rose [interest rates] in the first week of May, ”Connors said.“ You see digital assets, bitcoin, ether, and the rest of the altcoins fall. What happened was because there was stabilization. What people are examining is whether the rise in interest has been suppressed. In our view, this is not the case.

The volume of trade rose from the low level it held in the first months of the year, a sign of a potential, and at least temporary, recovery. But some analysts predict a more permanent departure from the current bear market. The coming weeks will be even more difficult for stablecoins, even if Terraform Labs CEO Do Kwon releases a “recovery plan” to save Terra’s network. Kwon offers to fork Terra into a new chain without UST.

Connors said investors are likely to see three to nine months of “choppy markets” and prices are likely to fall, possibly with support between $ 20,000 and $ 24,000. In this environment, he sees investors focusing more on Bitcoin and Ethereum. “Bitcoin dominance is necessary and will happen if markets are to sell,” Connors said. “People are looking for quality, but as Ethereum is now evolving as a number two quality asset in the ecosystem.»

Markets

S&P 500: 4,008 -0.3%

DJIA: 32,223 + 0.08%

Nasdaq: 11,662 -1.2%

Gold: $ 1,824 + 0.6%

Knowledge

Metaverse ETFs are struggling to catch up with gaming ETFs

Sometimes a nice new investment car, the latest Metaverse, isn’t as good on the market as last year’s model.

Metaverse exchange-traded funds (ETFs) arrived last year shortly after the term entered our lexicon and became a favorite of venture capitalists. Since metaverse is just a mashup of gaming and crypto, these metaverse ETFs are very similar to gaming or eSports ETFs (the two terms are the same), which were launched a few years ago.

They look like them because the metaverse is an ambiguous term; the shared online experience envisioned in Neil Stephenson’s sci-fi novel “Snow Crash” already exists on multiple gaming platforms. Metaverse tokens are not yet listed as proxies, so metaverse ETFs pay for that by setting up publicly traded cryptocurrency companies like Galaxy (GLX.TO) or Block (SQ), the former Square. And here begins the problem.

Roundhill Ball Metaverse ETF (TradingView)

This crypto association means that METV, a metaverse ETF from Roundhill, is less well -performing than ESPO, a gaming/eSports ETF from VanEck.

Gaming tech heavyweights like GPU designer Nvidia (NVDS) or game engine developer Unity are in two baskets and haven’t done well all year, but the inclusion of Galaxy Digital – below 60% YTD and planning a stock buyback https: // www.netcost-security.fr/cryptocurrencies/news/first-mover-asia-metaverse-etfs-are -underperforming-gaming-etfs-cryptos-return-to-the-red-202205170033-metaverse has really sunk in the ETF.

Of course, this metaverse ETF outperforms the metaverse tokens themselves: Sandbox’s eponymous token (SAND) is down almost 77% and Decentraland’s MANA is up 68% because both have a hard time attracting a single player base. showing their appreciation.

There is an irony here. The metaverse, which is a way to sell crypto-plus-gaming as a brand name product, is better on the market than vanilla gaming itself.

Maybe crypto doesn’t belong to everyone?

Technician’s opinion

1652748013 556 First Mover Asia Metaverse ETFs are not performing well compared to

The Bitcoin daily chart shows support / resistance. (Damanick Dantes/CoinDesk, TradingView)

Bitcoin (BTC) stabilized around the $ 30,000 price level after trading last week. The cryptocurrency should remain above the $ 27,000- $ 30,000 support zone this week to generate a positive short-term momentum signal.

BTC has decreased 3% in the last 24 hours.

The Relative Strength Index (RSI) of the daily chart is rising from the oversold level, which may keep buyers active in support. The RSI is also oversold on the weekly chart, although negative momentum may limit price increases.

Immediate resistance can be seen at $ 33,000 and $ 35,000, where the price collapse occurred earlier this month. This suggests that a large number of sell orders could limit a relief rally over the next two weeks.

In addition, the recent underperformance of alternative cryptos (altcoins) against bitcoin suggests a low risk appetite among crypto traders. Typically, alts depreciate more than bitcoin during bear markets because of their higher risk profile. The broader risk environment may remain a relentless downtrend of BTC.

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