Dear Teroxx Community,
This week we saw a digital asset market that saw mixed movements on a weekly basis.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
The prospective federal government is striving for a common European crypto-regulation, with which the traffic light could even set international standards. The traffic light coalition of SPD, FDP and Greens wants to create a “level playing field” between traditional finance and “innovative business models” such as crypto companies by taking over the government. The plans are a small accolade for the industry around Bitcoin (BTC) and Blockchain.
The “Alliance for Freedom, Justice and Sustainability” explicitly refers to cryptocurrencies in the 177-page coalition agreement under the title “Dare more progress” and even dedicates a separate section to them. In it, the coalition declares that it needs a “new dynamic towards the opportunities and risks arising from new financial innovations, cryptoassets and business models”. At the same time, it is important to “make use of the opportunities associated with new technologies, such as blockchain”.
Bitcoin (BTC) whales are transferring large sums of cryptocurrencies to exchanges, while outflows are also very high, according to recent data.
According to the so-called “exchange whale ratio” indicator from on-chain analytics firm CryptoQuant, large transactions accounted for over 90 percent of recent exchange deposits. “Whales are depositing BTC on exchanges,” as summarised by CryptoQuant CEO Ki Young Ju.
“$BTC exchange whale ratio (72-hour average) has increased to 91 percent. This means that the top ten deposits on the hourly chart account for 91 percent of the deposit volume across all exchanges.”
Responses to Ki’s tweet noted that mass outflows from exchanges also continue and reserves remain at their lowest level since mid-2018.
The aggregate of all bitcoin investment funds is seeing the steepest decline since July, whereas altcoin investment products are slowly catching up. Bitcoin (BTC) has now earned its status as a popular hedge against inflation, but as new data shows, the crypto market leader is getting more competition from Ethereum (ETH) and other altcoins for investors’ favour.
An important indicator of this is the Assets Under Management (AUM) metric, which shows the total assets invested in a financial product. In November, the AUM of bitcoin investment funds has now slipped by 9.5 % to a value of 48.7 billion US dollars, which corresponds to the largest decline since July. Meanwhile, AUM in altcoin mutual funds (e.g. ETH) increased by 5.4% to $16.6 billion.
Technical term of the week
Metaverse: Represents a virtual world similar to the real world. An interactive world is planned there via decentralised applications and representations, through which people can communicate with each other and in some projects are rewarded for their participation in the form of tokens with a play-to-earn model.
Bullish outlook: $60,000 as resistance to support would be a bullish market event and would confirm the positive market.
Bearish outlook: If global lockdowns and restrictions occur again, causing the global markets to experience negative days, digital assets could also correct.