Dear Teroxx Community,

This week we saw a digital asset market which experienced major setbacks in line with (most) global financial markets.

Weekly overview

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


Digital Asset News

Bitcoin can further establish the new record high for mining difficulty and the next record is already beckoning in the next 12 days. Bitcoin’s (BTC) blockchain network has set a new record high for mining difficulty, which stands at a value of 26.643 trillion and an average hashrate of 190.71 exahashes per second (EH/s). Clear evidence that the market-leading cryptocurrency still enjoys the trust of the community despite the current downturn. The “Difficulty” for mining Bitcoin is determined by the available computing power in the network, because the difficulty determines how costly mining or confirming transactions is. The mining pool F2Pool, which has contributed the lion’s share with 88 Bitcoin blocks in the last four days, has played a significant role in the climb. Poolin comes in second with 76 blocks. Meanwhile, the average transaction fee is $1.58, which is downright minimal compared to the April 2021 peak, when an astronomical $62.78 was called for a transaction.

SEC also rejects Skybridge’s “direct” bitcoin ETF – In its rejection of Skybridge’s “direct” bitcoin ETF, the SEC cites similar reasons as in the VanEck and WisdomTree cases.
SkyBridge’s original application for a “direct” bitcoin ETF on the NYSE was filed in March 2021. However, the SEC postponed its decision twice, giving itself longer review periods to take a close look at the application. This week, a decision has finally been made.

The SEC further justifies its rejection with reference to the NYSE, which in its view does not guarantee the requirements for the listing of a corresponding financial product. Thus, exchanges that want to run a bitcoin index fund would have to submit “a fully comprehensive surveillance agreement with a sufficiently large bitcoin market.” So far, the SEC has not waved through an index fund that directly buys related bitcoin assets. Only bitcoin futures-based ETFs have been approved in the U.S. so far. This would be an important and large market catalyst in the future.

NFT marketplace Autograph, co-founded by football star Tom Brady among others, has raised $170 million in investment capital in a new round of funding.
The non-funbible tokens (NFTs) trading platform announced this week that the $170 million funding round was led by notable venture capitalists Andreessen Horowitz (a16z) and Kleiner Perki. Also participating were Katie Haun’s investment firm, Nicole Quinn of Lightspeed Venture Partners and San Francisco-based investment firm 01A. Since its founding in August 2021, Autograph has worked with some of the biggest organizations and stars in sports and entertainment, mostly to launch NFT collections for them. For example, co-founder Brady, the quarterback of the reigning Super Bowl champion Tampa Bay Buccaneers, released several NFTs through the platform in December representing pivotal moments from his football career.
The adaptation of digital art, barter items or virtual objects thus continues to take shape.

Technical term of the week

Bearish market: Describes a situation in which an entire market (e.g. the entire market of digital assets, entire indices or generally entire market structures) runs negatively. Thus, not only individual shares, but almost all values run negative. This occurs much less frequently than positive or sideways running markets, but the effects are usually greater.

Crypto Market

Last week we saw market moves that caused the market to lose key support levels.

Bitcoin and almost all other digital assets, as well as previously very highly traded tech stocks, experienced major setbacks and sell-offs on a weekly basis. Chart-wise, Bitcoin and other digital assets lost key support regions (for Bitcoin ~$40,000) and failed to launch bullish counter-moves. As a result, the market cap ranks nearly 20% lower this week. Fundamentally, the market remains strong in terms of hash rate, transactions and adoption. Only the announcements of the central banks that interest rates are to be increased (in several steps) and that monetary policy is to be significantly more conservative in the coming years currently depresses the willingness to invest and leads to sell-offs in many markets.

BTC/USDT, 60

Bullish outlook: $36,000 seems to be the first minor resistance towards $40,000, should this be broken the market could resume a bullish base tendency.

Bearish outlook: It is still true that global sell-offs also lead to negative developments in the digital assets. Accordingly, a holistic view of the markets should be taken to assess the next movements.