Dear Teroxx Community,
This week we saw a digital asset market which was in a consolidation phase and experienced stabilizations.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
Under the leadership of the CAC, several Chinese authorities are to push ahead with a holistic promotion of blockchain technology. The corresponding initiative aims to implement blockchain technology across the board in nearly all government agencies and commercial enterprises.
For example, the official announcement states that the CAC will work with other agencies to “promote the intensive use of a blockchain infrastructure in various regions.” This will be done broadly across multiple industries and sectors to create a holistic blockchain ecosystem.
The authority already names a number of cities, provinces, companies and organizations that will participate in the initiative’s associated pilot projects. The initiative sees the main practical application areas for blockchain technology in manufacturing, energy, government, data processing, trademark, education, healthcare, risk management, foreign trade, logistics and business, among others.
Glassnode has developed an indicator called reserve risk (R-Risk for short). Using this, Glassnode argues that current buying and selling trends do not correspond to macroeconomic highs or lows.
“A low R-Risk value is characteristic of medium bear to medium bull cycles, where prices are depressed but HODLing dominates on the chain,” according to the report.
The R-Risk looks at the number of days owners do not sell. That’s compared to current price action and gives an indication of market sentiment at a particular price, for example.
Currently, R-Risk is trending downward and is near the “depressed” range. “Reserve risk oscillations correspond to macroeconomic bull/bear market cycles. They have clearly defined peaks that coincide with blow-off tops, with long periods of relative undervaluation during bear market bottoms, and with the beginning of bull markets.” Data from analytics firm CryptoQuant shows that miners, who have also accumulated massively in recent months, have reduced their buying somewhat. This could be due to the fact that Bitcoin is currently at a level that just covers production costs and is less profitable.
Meta, the group behind social media Facebook, WhatsApp and Instagram, has registered a trademark with the Brazilian Patent Office for the development of hardware and software products related to Bitcoin (BTC) and other cryptocurrencies. The Facebook company, which recently renamed itself Meta to better tie in with the Metaverse virtual crypto universe, is thus taking its next step toward the crypto industry. However, the influential social media company’s previous forays have always faced a lot of headwind.
So, perhaps also in order to avoid the confrontation with US politics, Meta has now applied to the Brazilian National Institute of Industrial Property (INPI) for a trademark for crypto products and services. Among other things, Meta plans to:
“Designing, developing and publishing software for the verification of crypto transactions, including (but not limited to) transactions with Bitcoin.”
The application was publicly disclosed on January 25 and will soon be reviewed by the Brazilian Patent Office.
Technical term of the week
Accumulation trend: Describes a trend that tells how many of the coins and tokens (of any digital asset) available on the market are bought up. This often provides information on how the general market situation is interpreted without considering the price trend as the most influential indicator.
Bullish outlook: $40,000 as a price target would make the market positive again in the short term.
Bearish outlook: Further sell-offs, a test of the support zones at ~$34,000 would cause negative signs especially in the altcoins.