Dear Teroxx Community,
This week we saw a digital asset market that saw stabilisation and only minor volatility.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
While the current bear market is characterised by great uncertainty, the on-chain data indicate that the majority of Bitcoin investors have been following the simple strategy of holding for a long time.
According to analytics platform TipRanks, the on-chain data accordingly shows that 62% of all Bitcoin wallets have held their BTC for at least a year or more. 32% of wallets have held for at least one month to one year, bringing the relative number of investors who have held for less than one month to a measly 6%.
In addition to the data on holding behaviour, the data service also analyses the profitability of this strategy. According to this, 48 % of the current holders are in profit, the amount of holders with a loss is also 48 %. The remaining 4 % make neither a profit nor a loss.
Although Bitcoin (BTC) has suffered several major downturns in recent weeks, just under a quarter of the available amount in circulation is still in wallets. On 18 August, this showed that a whopping 24% of BTC in circulation had not moved for at least five years, suggesting that long-term investors are not so quick to sell even in a prolonged bear market.
The blockchain company behind Cardano (ADA) has secured a top spot for the crypto industry in marketing agency MBLM’s new Brand Intimacy Rankings. In it, Cardano makes it to 26th place out of 600 brands, which is also the strongest representative from the crypto sector.
As the report on the ranking explains, “brand intimacy” refers to the degree of emotional connection that a brand has built up with its users or customers. MBLM uses Artificial Intelligence (AI) and Big Data to quantify customer loyalty for some of the biggest brands in the world, including Disney, Tesla and Apple.
Among the 19 industries considered, the crypto industry is in the top 10, with Cardano considered the strongest crypto brand (ranked 26th). Market leader Bitcoin is close behind in 30th place.
Bitcoin (BTC) is back below the psychologically important US$20,000 mark after plans for a price cap on Russian gas brought new turmoil to the global economy.
The market-leading cryptocurrency is thus failing to finally establish the important 20,000 US dollar mark as a firm support, which is why the mood on the crypto market is correspondingly gloomy. The stock market ended a difficult week, with the S&P 500 down 2.7% overall, while the Nasdaq Composite Index suffered a loss of 3.25%.
According to CoinMarketCap, BTC’s dominance stands at just 39%, its worst showing since June 2018.
TradingView, on the other hand, shows 39.88%, which would nevertheless equal an eight-month low. Previously, Cointelegraph reported that the total market capitalisation is defending its 200-week moving average (MA), which is a positive sign for the market as such.
Technical term of the week
Market share: Describes how much of the total market an individual project / company or another selected observation group has. The lower the share, the smaller the relative share and the smaller the impact on the overall market.
This is one of the reasons why developments in Bitcoin often have an impact on the entire market – market share of ~40%.
Digital Asset Markt
There were market movements last week that stabilised the market.
The general news last week was not particularly positive. Because of this, global financial markets declined and ended the week on a negative note. Digital assets also failed to gain a boost from this market sentiment, but also managed to avoid major price losses, making this week stabilising but not particularly positive.
Bullish outlook: If $20,000 is confirmed as a support region, the next minor bounce could take it towards $22,000.
Bearish outlook: If the global markets fail to provide relief over the week, further sell-offs could be the result and ~$18,500 could be the next price target.
