Crypto Offers New Opportunities for Indonesian Investors Worried About Inflation; Bitcoin is flat

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Hello. Here is what happens:

Prices: Bitcoin and Ether were stable on Monday.

Knowledge: Indonesian investors are turning to crypto, according to a report from Genesis.

Technician’s opinion: BTC’s short-term momentum turned negative, which usually happens in the first week of the month.

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Prices

bitcoin (BTC): $46,809 -0.4%

Ether (ETH): $3,541 -0.5%

Top Winners

The best losers

Bitcoin, ether works in place

Bitcoin and Ether were roughly flat on Monday amid light trading on Monday, as investors seemed content to watch events unfold, at least for now.

The largest cryptocurrency by market capitalization was recently trading at around $46,700, up slightly from its level 24 hours earlier. Ether also rose over the same period. Most other major cryptos were in the red. SOL and AVAX are recently down around 4%. DOT fell about 3%. LUNA, which was up around 3%, offered a bright spot.

Crypto trading remained well below levels of just a few months ago, underscoring investor caution amid economic uncertainties inflamed by Russia’s unprovoked aggression in Ukraine, although major equity indices rose with the tech-heavy Nasdaq up 1.9%.

US President Joe Biden said in brief remarks to reporters that the US would add sanctions meant to cripple the Russian economy after satellite images showed massive civilian casualties in the town of Bucha near the Ukrainian capital of kyiv. European Union countries have recently shown signs that they may reduce their dependence on Russian oil. Brent crude, a widely regarded measure of energy prices, hit $108 a barrel, up about $4 from Friday’s level.

Amid Oanda, Senior Market Analyst, UK and EMEA, Craig Erlam noted bitcoin’s instability over the past week after surging above $47,000. “It has recovered over the past few days after finding support around $44,000, but continues to struggle to find much momentum heading into last week’s peak,” Erlam said. “It could still build on that breakout, but it could be more complicated than what we’ve seen in the past, given the current environment.”

Markets

S&P 500: 4,581 +0.8%

DJIA: 34,921 +0.3%

Nasdaq: 14,532 +1.9%

Gold: $1,932 0.4%

Knowledge

Crypto offers a new opportunity for Indonesian investors

What is the word for growth stock in Indonesian? Where can you find the equivalent of the Nasdaq in Jakarta?

This is a trick question. While Indonesia is home to many exciting startups, the Jakarta Stock Exchange is a boring stock exchange. Over the past five years, the IDX80, an index of the top 80 companies on the Jakarta Stock Exchange, has fallen by around 3%. In comparison, Taiwan’s TAIEX was up almost 77% for the same period and Korea’s KOSPI was up 25%.

Indonesia, Taiwan and South Korea indices (TradingView)

That’s not the kind of return you’d want if you’re a young Indonesian from the country’s new middle class looking to build wealth. This is old news that Indonesians are deeply invested in crypto; there are more crypto investors in the country than retail stock traders. But new research published from crypto exchange Gemini helps quantify just how deep their interest runs.

Crypto Ownership (Gemini)

Crypto Ownership (Gemini)

According to Gemini’s findings, 41% of all Indonesians own crypto – evenly split between the two genders at 49-51% for both males and females. The country’s relatively high ownership rate makes it an outlier, as the report found that higher-income countries tend to have higher degrees of crypto ownership. By comparison, the UK has 40%, Germany 43% and France 62%.

And all this is a new phenomenon. Globally, 41% of survey respondents purchased crypto for the first time in 2021.

Apart from the stock market which does not offer opportunities to create wealth, inflation is on everyone’s mind. Gemini’s survey showed that 64% of Indonesians think it’s inflation protection, and 61% of people think crypto is the future of money. In comparison, in most Western European countries, only 20-23% of people share this view. In the United States, it is 23%.

Those who cover the PC and cell phone industry will note that many emerging markets have completely ignored PCs because their first “personal computer” was their smartphone. Similarly, telecoms have not bothered with the widespread installations of copper telephone lines. Instead, 3G towers rose, followed by 4G in the mid-2010s, providing the average person with ample bandwidth.

Clearly, the same pattern is emerging in finance.

Technician’s opinion

Bitcoin Weighted By $48,000 Resistance; Support at $43,000

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

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

bitcoin (BTC) fell below $46,000 on Monday, indicating a loss of upside momentum.

Price action was choppy over the weekend after buyers failed to approach $48,000 resistance level. This points to continued price weakness, especially as momentum signals on the daily chart have turned negative, as happened in the first week of February and March.

Support at $43,000 could stabilize the pullback, which is close to the March 25 breakout level. Still, BTC will need to break above the 200-day moving average, currently at $48,286, in order to achieve upside targets beyond the $50,966 resistance level.

For now, momentum signals remain positive on the weekly chart, meaning the downside may be limited.

Important events

Celo Connect Conference for developers, entrepreneurs and investors

08:30 HKT/SGT (00:30 UTC): Jibun Banking (Japan) (March)

12:30 HKT/SGT (4:30 UTC): Reserve Bank of Australia interest rate decision and statement

CoinDesk TV

In case you missed it, here’s the most recent episode of “First Mover” to CoinDesk TV:

Musk’s 9.2% stake in Twitter, Oklahoma weighs tax incentive for Bitcoin miners and more

Dogecoin (DOGE) price and Twitter (TWTR) stock soared after Elon Musk took a 9.2% stake in the social media company. Mati Greenspan of Quantum Economics joined “First Mover” to share his analysis of the crypto market. The State of Oklahoma is considering a tax incentive for bitcoin miners. The bill’s co-sponsor, State Senator John Michael Montgomery, explained the proposal. Additionally, Kalman Gabriel from Digital Strategies provided insight into the rise and fall of ApeCoin.

Securities

The Crypto Party at the Grammys: From Binance and OneOf to a side of NFT PFPs, a crypto presence was felt at the music industry’s flagship event.

Crypto Exchange BitMEX lays off 75 workers: The global job cuts will affect around 25% of the company’s workforce and come after a plan by a company founded by BitMEX executives to buy a German bank failed in March.

Digihost Becomes First Publicly Listed Miner to Offer Bitcoin Dividend Payments: The miner also expects an average hash rate of 1.5 exahash per second (EH/s) for 2022, about 5.5 times more than its 2021 mining power.

The Pudgy Penguins NFT Collection is heading to the next chapter with a $2.5 million sale: The collection of 8,888 digital penguins was sold to Los Angeles-based entrepreneur Luca Netz in a deal for 750 ETH.

Longer reads

Ethereum founder Vitalik Buterin praises “Bitcoin maximalism” (maybe): The blockchain mastermind also took pictures of Ethereum in a richly ambiguous April Fool’s Day post.

Today’s crypto explanation: What is an avalanche? A look at the popular “Ethereum-Killer” blockchain

Other voices: Reality intrudes on a utopian crypto vision (The New York Times)

said and heard

“Short sellers are betting against a cryptocurrency whose price is not expected to move.” (The Wall Street Journal) … “In the case of Axie/Ronin, the company behind the network didn’t even notice the hack for about a week. Or if so, they decided to take their time to officially announce it: a blog post revealing the losses increased on March 29, six full days after the attacker fled with the funds.” (CoinDesk columnist Will Gottsegen) … “Russia’s invasion of Ukraine has led countries to tear up their fossil fuel transition timelines. In their quest for more secure energy supplies, they are simultaneously rushing towards and away from oil, gas and coal. In the short term, many countries are leaning even more towards fossil fuels. They are in a race to lock in enough supplies from non-Russian sources, including more coal, to ensure that they can heat homes, power factories, and transport goods for years to come.The Wall Street Journal)