Wow, Mother Wow, What’s Up, Satoshi? We are in the fourteenth article of the series. “This week, many investors across the market sold at a loss for various reasons. We hope you have no loss. “Let’s start by saying.
In this week’s article, we will talk about the market, the news from China on Friday, Vitalik Buterin’s statements and a new partnership established in Switzerland.
Talking about the market, we will try to evaluate the reason for the decline rather than how it happened, in what ways people responded to this decline.
Institutional investors did not miss the bottom opportunity
As anyone who follows the market more or less will know, it was bought and sold on Monday for $ 46,500. Bitcoinfell as low as $ 30,000 on Wednesday. It was traded at over $ 40,000 on Thursdays and Fridays, after the news from China it fell again.
Glassnode ekibinden Will Clemente’in to compilations Different investor groups reacted in different ways during this mobility. This week, especially for short-term investors, this is the first time since March 2020. sale at a loss We talked about what he did.
Clemente stated in the report published yesterday that the sales transactions in the market may have been mostly made by “young whales”. This claim Average Spent Output Lifespan it is based on the metric moving down. In other words, Average age of Bitcoins put up for sale in the market started
Getting a slightly more specific date thanks to the Spent Output Age Bands metric and greatly improving sales in the market “Investors who bought Bitcoin in the past few months” say it was made by possible.
While some of the investors are selling, in your wallet Between 10,000 and 100,000 Investors with a large amount of Bitcoin, started buying was observed.
Glassnode’s founders shared a different metric that could support this analysis. Apparently, transactions from OTC (over the counter) platforms’ wallets started to proliferate. This data is “Institutions buy from the bottom heavily.” shaped commented on.
Although it is daring to make an inference based on these data alone, it may be possible to comment as follows with cautious statements: This week, many short-term investors who recently bought Bitcoin have risked selling, even at a loss; Investors presumed to be institutional, on the other hand, saw the decline as an opportunity to buy. ‘can’.
Vitalik Buterin: “The cryptocurrency market is in the bubble”
Ethereum founder Vitalik Buterin, this week CNN Business’a In an interview, he said that the crypto money market, as it is today, is in a bubble. Buterin said that “it is difficult to predict” when such bubbles will burst. a few months stated that it could take.
Whitepaper written by Buterin in 2013 EthereumCame to life in 2015. For the first time as of this year billionaire Buterin, who has reached the title, so far in the crypto money market “En the 3 wheel balloon” explained that it was formed and “Balloons are usually not yet technology is not enough because there was an incident that revealed (explodes) “ said.
Among the topics Buterin emphasized Elon Musk There is also a BTC-ETH relationship with. Musk; social media posts, comments on Saturday Night Live and in general Mobilizing the market with a single tweet became famous with. Buterin said that the market will start to act more consciously on this issue, “Elon’s effect won’t last forever.” said.
Apart from its impact on the market, Musk and Buterin seem to agree at least on Bitcoin’s environmental impact. Saying that bitcoin miners “consume huge amounts of resources”, the name empathizes with those who are concerned about its impact on the environment.
According to Buterin, Bitcoin does not solve this energy problem and “if it continues to use what it is today’s technology,” “With the risk of falling behind” will face.
Ethereum is preparing to switch from the proof-of-work algorithm to the proof-of-stake algorithm. In this way, while an interruption of between 1,000 and 10,000 times is expected in energy consumption, Buterin explained it as follows:
“We will start to consume as much energy as a town, not as much as a mid-sized country.”
News from China may not be FUD this time
There is a phrase called “China / Chinese FUD” that has been common in the crypto money market for years. The cryptocurrency market has either begun to rise or has already risen, a negative news comes from China about cryptocurrencies, at least in the short term, prices start to fall, and people blame the news from China. Examples of this happened in 2013, in 2017.
The reason why these reports are called ‘FUD’ is that they are usually about statements made by a low-middle-ranking government official, or a statement from an institution that does not have the power to regulate alone, or in this way, something different. In short, a news that will not have a direct effect in terms of practices in the sector spreads all over the world. Of course, decisions taken in 2013 and 2017 are exceptions. But, for example, the statement made by three organizations in China this week that cryptocurrency transactions are prohibited was interpreted by many as “FUD”.
Yesterday, Chinese Deputy Prime Minister Liu He on Bitcoin mining and trading “Strict measures will be taken” explained. The first reflex of some fanatics was to equate this news with others. But this time the news may differ from the previous ones. Why is that?
- Messari Product Manager, Qiao Wang, openly said FUD to the news from 3 establishments in China this week. For yesterday’s news says the following: “The news this time feels different because I don’t remember any serious breakthrough in China before to take drastic action against mining. … China will take strict measures against only mining and trade, not against on-chain transactions and owning (cryptocurrency). I think this is an important distinction. ”
- Here are the first comments from Dovey Wan, co-founder of Primitive Crypto: “This news is more serious than the ordinary Chinese FUD because it can have tangible consequences. The order comes directly from the state department and is announced by the Deputy Prime Minister. The effects of a policy in China depend on who the order comes from and who declares the decision. “
Although he said these, both names bullish in the long run is that It should be noted. According to Wang, if China bans cryptocurrency mining completely, people will no longer “control Bitcoin by China.” “Most of the Bitcoin mining is done with coal in China.” they will be able to say.
In such a case, in the mining industry, so to speak, ‘cards can be redistributed’. Dovey Wan said that Bitcoin mining could thus become “much more decentralized” and that this would be bullish on behalf of the market. says.
More than 65% of the hash rate in Bitcoin is in China, according to the Cambridge Center for Alternative Finance.
Digital asset integration to banking software
Two companies in Switzerland, Temenos and Taurus, formed a partnership earlier this week. Purpose to banks all kinds of cryptocurrencies, tokenized assets and digital money to offer the possibility to integrate easily.
Taurus, a blockchain company, recently received a license from the Financial Markets Supervisory Authority (FINMA) in Switzerland. There are many different digital assets on the platform established by the company, including DeFi products. Temenos, a banking software company, will be able to access this platform thanks to the partnership.
Why it matters: Taurus has different products such as CAPITAL (tokenization), PROTECT (hot / cold solutions for the storage of digital assets), EXPLORER (API-based connection with more than 10 blockchain protocols). Banks that are customers of Temenos will be able to access these products through Temenos MarketPlace and use them for their own services. They will be able to integrate. In this way, customers will be able to offer custody services for digital assets, manage tokenized assets and use them themselves. they will be able to create.