First Mover Asia: For the metaverse to be a $ 13,000,000 opportunity, a lot of things need to change; Bitcoin breaks over $ 31,000

Citi Report Makes a Bold Prediction, But Major Metaverse Platforms Struggle to Attract Engaged Users; mixed altcoins.

Hello. Here’s what happens:

Price: A late surge took bitcoin past $ 31,000, where it started the week.

Insights: A Citi report puts the potential value of the metaverse at $ 13 trillion, but the platforms are struggling to attract involved users.

Technician’s Opinion: Price rebounds did not last long, indicating a loss of buying momentum.


Bitcoin (BTC): $ 31,285 -0.07%

Ether (ETH): $ 1,828 -1.5%

The biggest winner

Asset Teleprinter Return DACS sector
Chain link LINK + 9.1% Computing
gimbal fairy + 1.2% Smart contract platform

The biggest loser

Asset Teleprinter Return DACS sector
internet computer PCI −8.7% Computing
Solana PAVEMENT −7.4% Smart contract platform
Classic Ethereum ETC −4.0% Smart contract platform

Bitcoin Rises Too Late To Return Over $ 31,000

Bitcoin moved back above the $ 31,000 threshold on Tuesday after the introduction of a federal cryptocurrency bill that would address a number of major regulatory issues plaguing the industry. Ether and other major digital assets also rose in the afternoon, reclaiming land lost earlier in the week.

The largest cryptocurrency by market capitalization was trading above $ 31,200, almost flat over the past 24 hours, but well from its temporary perch below $ 29,300 on U.S. exchanges early Tuesday morning. Bitcoin fell late Monday and continued to trade on an unfavorable range amid widespread investor concern over inflation, geopolitical turmoil and the global economy.

Ether, the second-largest crypto recently declined more than 1%, trading above the $ 1,800 level. Other major altcoins are mixed with SOL at 7% but LINK above 8%. Sentiment remains bearish.

“Markets are continuing a long downtrend, but the recent favorable U.S. cryptocurrency bill provides near-term support as it suggests inflicting too much grief. [Securities and Exchange Commission] in terms of crypto jurisdiction, ”James Key, CEO of web protocol 3 Autonomy Network, told CoinDesk.

Stock markets, which have been steadily declining in recent days as investors have garnered some strong attention as well as their recent bad news regime, have risen in those. Tuesday with the Nasdaq, S&P 500 and Dow Jones Industrial Average all above half a percentage point. .

However, investors had reason to worry on Tuesday. The World Bank has cut its forecast for global economic growth for 2022 to 2.9%, from 4.1% in January. World Bank Group President David Malpass called the “risk” of stagflation “huge.” Later in the day, U.S. Treasury Secretary Janet Yellen told the Senate Finance Committee that she expects inflation to remain high. And less than three weeks after reporting disappointing results in the first quarter, Target warned investors that its earnings would decline due to a change in consumer behavior that created imbalances. in its inventory.

Many analysts expect the cryptocurrency bear market to worsen in the near future, and Key noted that past Bitcoin bear cycles have declined after an 85% decline in value in at least 18 months. The current market has lost almost 60% of its value since hitting a long period last November.

“I really doubt that’s the bottom line,” Key said. “Furthermore, these past cycles have all been in a long equity bull market, while this is not true for the first time. If institutional investors reduce risk,” exotic “and risky assets such as cryptocurrency will be the first to be sold, indicating that this season has the potential to become an even worse bear market. »


S&P 500: 4,160 + 0.9%

DJIA: 33,180 0.8%

Nasdaq: 12,175%

Gold: $ 1,851 + 0.6%


The metaverse struggles to attract users

A recent Citi report calculates the total accountable market value in the metaverse at $ 13 trillion.

If realized, it’s an impressive achievement given that the gaming market is worth just $ 180 billion, according to gaming research house NewZoo, and the PC gaming hardware market is only $ 5.7 billion.

For the most part, the Metaverse market is just a small version of the game market. Metaverse exchange-traded funds (ETFs), with their exposure to publicly traded cryptocurrency companies, have lagged behind their gambling market counterparts-albeit mostly for the same thing.

Citi says the $ 13 trillion figure ranges from all “internet-related revenue to the world’s shifted physical activities.” This makes a lot of assumptions about the future of e-commerce, because it means that all aspects of the e-commerce stack will be disrupted in the metaverse.

This is almost similar to the fast Augmented Reality (AR) mentality of late 2010. Mobile-centric is poised to disrupt many aspects of the Internet economy, from gaming to advertising.

But the AR space has failed to produce useful unicorns. Blippar, a promising London -based startup that mixes artificial intelligence (AI) and AR, became insolvent in late 2018 after raising $ 37 million on $ 1 billion in valuation.

The app promises to transform e-commerce by allowing users to point their phone at anything and retrieve any information the app retrieves from visual recognition and online search. It can also be used to provide a more 3D view of products that enhances online sales opportunities for retailers. All of these are very interesting and promising new revenue models, but the user base is never happening.

With the exception of Blippar, Magic Leap, which released promising introductory visuals that never delivered, sucked life from the capital markets for the AR capital markets, depriving many promising AR startups. in their ways. Despite the success of Pokemon Go, there is no other AR unicorn like it.

Back to Citi’s metaverse forecasts, such as the bull market around AR in the late 2010s, there’s something missing: users. On-chain data shows that despite high ratings, metaverse majors struggle to build a userbase, with some having only a few thousand at most compared to tens of millions of players playing simultaneously. on Steam or Xbox Live.

And that’s not because they’re new platforms: Steam’s PC gaming network hit 1.5 million concurrent users six years after launch; Decentraland currently has less than 1,200 active users and has been open to the public for two and a half years.

We still have a long way to go before the metaverse becomes a $ 13 trillion opportunity.

Technician’s opinion

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

Bitcoin (BTC) remains in a changing trading range because the short-term indicators are neutral. The cryptocurrency will find support at $ 25,000 and $ 27,000 as its price continues to stabilize from last month’s selloff.

BTC has decreased 4% in the last 24 hours.

The Relative Strength Index (RSI) of the daily chart has returned below the neutral mark of 50, indicating weak momentum behind the latest price rallies above $ 30,000. On the weekly chart, the RSI is the most oversold since March 2020, leading to the rise in the price of cryptocurrency.

However, the indicators may remain oversold for several weeks, especially with the recent price trend. This means the upside could be limited for BTC, with immediate resistance to the 50-day moving average of $ 33,371.

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