Dear Teroxx Community,
This week we saw a market in digital assets that now experienced major setbacks after the upswings of the past weeks.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
More and more Bitcoin investors are opting for long-term holding. As Glassnode’s data accordingly confirms, the proportion of BTC in circulation that has not moved for at least five years has reached a new record high.
Thus, the share of bitcoin in circulation that has been in the same wallet for at least five years has reached a new peak of 24.351% (as of 18 August). So just under a quarter of the available 19.12 million BTC has not been in the market since 2017 or earlier. Another key figure that confirms this development is the so-called “liveliness” of Bitcoin. This also measures investor behaviour and this week it reached its lowest level since early 2021.
Liveliness, created by Bitcoin developer Tamas Blummer, is mapped as a value between 0 and 1 depending on how hard investors sell.
“It is obvious that Liveliness increases (and HODL decreases) when the price climbs, while investors prefer to hold during periods of sideways movement,” as Blummer explains in reference to his metric.
After talks with the main creditor Claret Capital Partners and potential interested parties, insolvency administrator Jesko Stark is confident that the business model can be continued by the German crypto bank Nuri. According to Stark, Nuri’s turnover in 2021 was twelve million euros. But contrary to what Nuri CEO Kristina Walcker-Mayer claimed in April, the number of customers is not 500,000, but only 200,000.
Nuri had come under pressure in the context of the current crypto crisis. The bankruptcy of the American lending service provider Celsius accelerated the decline. The restructuring measures introduced shortly before the insolvency and the dismissal of 20 percent of the workforce could not avert the difficult situation at Nuri.
When breaking down the revenues, one sees that FTX’s operating profit increased by 1,842.85 percent from 14 million US dollars to 272 million US dollars within one year. FTX was one of the many crypto exchanges that witnessed the crypto hype of 2021 first-hand, when Bitcoin (BTC) and other cryptocurrencies reached all-time highs. Due to massive client growth, partnerships, sponsorships and other factors, FTX’s revenue is expected to have increased by 1000 per cent by 2021, internal documents show.
According to CNBC, audited financial reports for the 2020/2021 financial years show that FTX has seen a 1000 per cent increase in revenue, with an increase from $90 million in 2020 to $1.2 billion in 2021.
Bitcoin (BTC) starts a new week fresh from a new multi-week low amid a return of highly nervous sentiment.
After dipping below $21,000 over the weekend, the largest cryptocurrency is consolidating around 10% lower than a week ago, and the fear across crypto markets is clearly visible. The United States Federal Reserve’s annual Jackson Hole symposium is due this week, while September is already due to form something of a showdown when it comes to inflation and associated macro price triggers.
That could mean fresh volatility across risk assets both during and prior, something weary investors will no doubt not welcome after last week’s escapades on BTC/USD.
The United States Federal Reserve is once again in the driving seat this week when it comes to potential macro price triggers for risk assets.
Fresh from last week’s Federal Open Markets Committee (FOMC) meeting, Fed officials, together with banking figures from around the world, will meet for the annual Jackson Hole symposium on Aug. 25-27.
This year’s gathering comes at a critical time for markets in the U.S. and further afield. Inflation under the Fed’s jurisdiction appears to have begun cooling, while elsewhere, the opposite story remains true.
“They are so focused on doing this partly just because they screwed up last year with the whole ‘transitory’ thing, and they realize that the one thing they can do now is tighten policy, and that will slow inflation,” Kevin Cummins, chief U.S. economist at NatWest Markets in Stamford, Connecticut, told Bloomberg.
Technical term of the week
Hodl: This expression is used to make clear that digital assets are held and not sold, regardless of the short-term price trend. Hodl comes from a spelling mistake, actually it means hold – English for “to hold”.
Digital asset market
Bullish outlook: If a swift support retracement takes place, $23,000 could be the next price target to test resistance at ~$25,000 sequentially.
Bearish outlook: Weakening markets could lead to sell-offs towards ~$20,000.