Dear Teroxx Community,

This week we experienced a market of digital assets, which showed slightly negative tendencies.

Weekly overview

As usual, we are also providing detailed videos for those who want to delve deeper into the subject.

Digital Asset News

As the data shows, the bitcoin price has been consolidating in a sideways movement on Wall Street since the end of the week.
This resulted in a quiet weekend, before from today (Monday) all eyes are on the release of new inflation data and the meeting of the U.S. central bank.
With the Producer Price Index (PPI) already released this week, next week will see the Consumer Price Index (CPI), which is considered a slightly more important inflation metric.
As a majority of analysts are predicting, the CPI could also hint at a slow decline in inflation, which would most likely mean new tailwinds for investment products like cryptocurrencies.
“I personally expect that we will see CPI in the range of 7.0-7.2%, which will have a big impact on the markets,” as predicted by expert Michaël van de Poppe. “The FOMC will scale back its interest rate policy a bit afterwards,” van de Poppe said.
In turn, macroeconomist James Choi points to stock market developments as potential catalysts for the crypto market.
“In the U.S., inflation is at its peak, the U.S. dollar is weakening, and the reopening of the Chinese economy is creating good investment opportunities.

The much-discussed crypto litigation between the U.S. Securities and Exchange Commission (SEC) and Ripple is nearing its end after a two-year battle.
On Dec. 2, both the SEC and Ripple filed redacted responses to each other’s oppositions to motions for summary judgment. Ripple concluded in the document, “the Court should grant Defendant’s motion and deny the SEC’s motion.”
Stuart Alderoty, general counsel for Ripple, stated on Twitter on Dec. 3 that this was Ripple’s “final filing” and asked the court to enter judgment in its favor.
He also stated that Ripple was proud of the defense the company presented “on behalf of the entire crypto industry.” It went on to say that Ripple has “always been honest with the court.” He also took a side swipe at the SEC, saying that “the same cannot be said of our opponent.” Filan believes Judge Torres will not address the three big questions “separately,” but will rule on everything together. After she rules on the summary judgment motions, “a big written decision” will be issued, probably “on or before March 31, 2023.”
Overall, the entire process to date is considered a “success” for Ripple, which could become a finger point for the entire industry.

Automaker BMW is apparently looking to increase its involvement and presence in the Metaverse. According to a Twitter post by trademark attorney Mike Kondoudis, the company secured the rights to use logos, media and 3D graphics of BMW-branded virtual vehicles, clothing and footwear in the Metaverse. In the announcement, BMW outlined its intention to develop existing brand and product representations as collectibles in the form of non-fungible tokens (NFTs) to offer virtual clothing for online games and virtual environments, for example. Even though prices in the NFT market for collectibles have plummeted, sometimes dramatically, in recent months, corporate interest in this new market of the future appears to be unabated. For example, trademark applications filed for NFTs increased from 2,142 for 2021 to 6,855 by the end of October 2022.

Technical term of the week

Depegging: Describes the occurrence when a currency can no longer hold at its targeted fixed value. This happens with “new” algorithmic stablecoins and also in the traditional financial world. Depegging is therefore a very negative event for the affected currency and usually has long-term effects.

Digital Asset Markt

In the past week, there were market movements that led to slightly negative price developments.The digital asset market continues to be in a narrow trend channel without significant volatility. Price swings were not particularly pronounced last week either. After the production price index was published, which was not particularly positively received by market participants, the new inflation figures from the U.S. and the accompanying adjustment of key interest rates are due this week. All eyes are on these events and only then will volume (if the figures are interpreted positively) flow into the markets. A sharply decreasing inflation and thus a minimal key rate adjustment could provide for a “Christmas rally”, although most experts are still cautious.
Bitcoin thus continues to hover between ~$17,500 – $16,500. Volatility is expected on Tuesday and Wednesday, however, which should result in price changes.

BTC/USDT, 60

Bullish outlook: Positive inflation figures and a low increase in key interest rates in the U.S. could provide a temporary but larger upswing.

Bearish outlook: If inflation turns out to be higher than expected, almost all asset classes will see sell-offs.