[Daily] Is Solana real?

Good morning! Welcome to The Daily Moon. Goldman Sachs declared that Bitcoin was the best performing asset of 2022. It beat S&P 500, gold, real estate and Nasdaq 100. The fact that Goldman Sachs has given the crypto a thumbs up is special because it used to be a sceptic. How the tables have turned.

As of Thursday, 8PM IST

The markets recovered. Bitcoin was at ~$23,200 and Ethereum was headed to $1,620.  Nasdaq rose in early trade. Back home, Sensex and Nifty were closed for Republic Day. 

Is Solana’s Rally For Real?

Solana has been on an unbelievable rally of sorts. Since the start of the year, it’s up over 135% at ~$23. It is almost as if the free fall following FTX’s crash has vanished all of a sudden. But it may fizzle. 

What is happening?A technical indicator called Relative Strength Index is in the oversold stage. This means that the token’s rally may be short-lived. There was also a short-squeeze in the futures market that caused Solana’s price to increase. Short squeeze happens when short sellers exit a token in bulk because their bets of a price fall didn’t work. 

Will the rally last?The long-to-short ratio is still in favour of shorts at 51.5%. This means that short sellers still dominate the market in anticipation of a price fall. 

I miss the good old daysThe market expects SOL to continue the rally for a bit and then slide once again. There’s also the prospect of FTX’s bankruptcy managers dumping Solana in the open market to start recovering the costs. The pain for Solana hasn’t ended just yet.

Care For Some BTC?

There is a new treasure hunt in town. And if you crack the code, there’s BTC to be won.  

Wow, how much BTC?The Hunting Sats wallet is being funded even as you read it. So far, it has ~$919 worth BTC on offer. There is more satoshi added every few minutes,

Treasure hunt?The company “organising” the hunt has created a wallet with a 12-word seed phrase and a passphrase (or password). Whoever cracks the seed phrase and passphrase first, gets the bounty. 

1. The wallet’s 12-word seed phrase was distributed to 12 people.

2. Each of them will randomly reveal their word on Twitter.

3. As words are revealed, you can use “brute force” to guess the code.

Why is Wasabi doing it?It wants to say this is a PSA but it is to gather users and increase engagement. Right. 

Genesis Needs Jesus To Pay

Now that Genesis is bankrupt, it needs Jesus. We’re not someone who lobbies for religion but the bankrupt lender has sued Roger Ver aka Bitcoin Jesus for $20.86 million. He has allegedly not paid for the options trades that expired on December 30. 

What is the beef?Ver did some derivatives trading with GGC but apparently didn’t settle the trades after expiry. So, let’s break it down. Let’s assume you promised to buy $10 worth Doge by a certain date if it hits that number. If it does, you fulfil your trade and make the purchase. However, Mr Jesus here didn’t And Genesis needs him to be true to his word. 

What’s next?The lender has entered bankruptcy. So even if Ver pays, the money won’t be immediately paid back to Genesis. 

ICYMI This isn’t the first time that Ver has been accused of something like this. In 2022, CoinFLEX claimed that he owed it $47 million. He denied it. 

Tesla Held On To Bitcoin

Elon Musk may have shunned Bitcoin from his latest toy but Tesla held on to king crypto all through December. This despite the value of the crypto portfolio ebbing away 15%.

There’s history, right?Yes, there is. In the height of the lockdowns, Musk had overcommitted to Bitcoin and bought $1.2 billion worth of the crypto. But the company eventually cashed in and sold 75% of it over the next few months. The massive sell off contributed to the Bitcoin market slide and the price corrected. 

Why hold on now?The famous adage, “sell low and buy high” kicks in. If Tesla sells all its holdings now, it will depress the value further and not be able to make back any of the money it spent to purchase the king crypto. For now, it makes more sense to hold.

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