Russian Market

2022-05-16 19:35:06 An important day for the S&P500

The price action of S&P500 futures is closely watched today for confirmation of the rally that was initiated last Friday. The index recorded its sixth week of losses last week as every rally during the past weeks failed to last long.

The key support level to watch for on S&P500 futures is $3,930, should it break this level, the index is likely to retest its last week's lows of $3,860.

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t.me/therussianmarket Open / Comment

2022-05-16 19:12:18 Euro on upward trajectory

The current weakness of the euro in foreign exchange markets is complicating the European Central Bank's efforts to achieve its objective of controlling inflation, said Francois Villeroy de Galhau, ECB's governing council, expecting a "decisive" meeting in June on the rate hike, and an "active summer" in terms of monetary policy.

Following the news, the euro has jumped against the dollar, reversing its downward trajectory. A floor around the 1.0400 level should incentivize more traders to jump in.

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2022-05-12 19:39:55 Binance to delist LUNA/USDT contracts, Terra blockchain halted

Crypto exchange Binance announced it would be taking "precautionary measures" on its LUNA/USDT perpetual contracts, intending to delist the pair if the price dips below 0.005 USDT, which has already happened.

Binance stated that it would launch BinanceUSD (BUSD)-margined LUNA futures contracts, apparently as an alternative investment vehicle in the event of a LUNA/USDT delisting.

In addition, according to an official announcement on Twitter, the Terra blockchain has been halted at block height 7603700 to prevent governance attacks following severe LUNA inflation. The supply of the token has swelled to 3.45 billion tokens. Such massive inflation has significantly reduced the cost of potential attacks.

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2022-05-12 17:59:06 Cathie Wood’s Ark Invest purchases $3 million worth of Coinbase stock

Investment management firm Ark Invest led by Cathie Wood bought a total of 546,579 shares of Coinbase worth $2.9 million, according to the firm’s daily trade information newsletter. The purchase comes amid a 30% plunge in Coinbase stock following the release of its Q1 earning report, with a quarterly loss of $430 million.

Coinbase went public on the Nasdaq exchange through a direct listing in April 2021, with the company’s stock initially selling at $381.

Per a Reuters report, thanks to the strength of its portfolio of companies such as Zoom Video Communications Inc and Teladoc Health that rallied during the pandemic, ARK Innovation ETF outperformed all other actively managed US equities in 2020. However, as of the end of April 2022, Wood's ARK Innovation ETF was down 50% year to date, falling nearly an additional 8% on Wednesday.

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2022-05-12 17:20:55 US PPI in line with expectations

The producer price index increased at an annual rate of 11.0% in April, signaling persistent inflationary pressures. Despite the high level, the increase rate is slower than the 11.2% annual rise in the prior month, fueling hopes that we might be seeing the peak.

Now the question that everybody in the market is asking is how quickly will price increases come down back to more normal levels, giving room for the Fed to reconsider its tightening policy.

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2022-05-12 16:13:08 Terraform Labs CEO was behind the failed Basis Cash stablecoin

Terraform Labs (TFL) CEO Do Kwon was reportedly one of the co-founders of the failed algorithmic stablecoin Basis Cash (BAC), founded by the anonymous "Rick" – presumably Kwon and "Morty" – the second co-founder.

Launched in late 2020, BAC just like UST sought to maintain a $1 peg through code, not collateral. On its website, Basis Cash describes itself as a "Decentralized Stablecoin with an Algorithmic Central Bank."

In January 2021, the price of BAC sank below the $1 level, which it never reached again. At its peak, the market cap of BAC was $93 million.

Former TFL engineer Hyungsuk Kang said that Basis Cash was a side project from some of Terra’s early creators, including himself and Kwon.

"Basis Cash wasn’t tested at the moment, and we weren’t even sure" it would work, Kang said. Kwon "wanted to just test it out. He said that this was a pilot project for doing that."

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2022-05-12 15:20:54 Terra announces new emergency measures to support LUNA and UST

Terraform Labs has begun implementing emergency measures to save LUNA and re-peg the TerraUSD (UST) stablecoin.

According to the Twitter thread, the company aims to burn over 1 billion UST in the community pool, as well as burn the remaining 371 million UST cross-chain on Ethereum and with the staking of 240 million LUNA the company aims to strengthen Terra’s economy and prevent network governance attacks.

Terraform Labs is currently exploring the best ways to increase the burn rate of the remainder of its UST holdings. The implementation of all three measures will help fix the on-chain swap spreads on the system, which will hopefully peg UST again.

In addition, the circulating supply of LUNA increased by 4.355 billion on May 12, and more than 1 billion have been issued in the past two hours, according to Terra Analytics.

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2022-05-12 15:03:53 Bitcoin hovers around key support. Peak capitulation?

Bitcoin fell as much as 6% on Thursday, close to below $27,000, the lowest since December 2020. The key question is whether it will be able to regain its key support level of around $29,800.

The downfall of the stablecoin UST has impacted the crypto market and it is unclear if markets are close enough to peak capitulation in order to rebound. There are some signs of capitulation such as forced selling and markets are largely oversold after falling rapidly.

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2022-05-12 10:42:33 Peter Brandt predicts local bottom for Bitcoin

In a recent tweet, trader Peter Brandt predicted that the $27,000 could end up being a local bottom for Bitcoin. According to him, a huge spike in volume indicates that traders are capitulating, what may be "the beginning of the end of the one-year decline."

Brandt opined that the Terra fiasco has now spill over into "trustworthy" Bitcoin. This and the fact that investors may lose their crypto if Coinbase goes bankrupt after its shares plunged by 30% this week are the main catalysts for the further price decline.

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2022-05-12 10:12:14 Market Overview

BTC price trades below $27K

The Top-10 are traded in red zone:
SOL -34.5%
ADA -32.3%
XRP -31.3%

Market cap: $1.22T (-18.7%)
BTC dominance: 42.31% (+6.45%)
Fear & Greed Index: 12 (Extreme Fear) Open / Comment