This shakeout isn’t done yet – there will be more crypto casualties
The week in review
with Jason Deane
It’s been another week of contagion and chaos as the FTX fallout continues, driving all crypto prices lower as confidence continues to be shaken. This is not over yet, there will be more casualties.
But, this is also a moment of opportunity. We all knew the market was a complete mess with exchanges operating outside regulation on a “trust me bro” basis, but I’m not sure many of us really knew quite how bad it actually was, something I discussed with Christine Lee on Coindesk TV earlier this week.
To me, this shakeout is very reminiscent of the dot com bust of the early noughties when over eager (and sometimes completely scandalous) innovation had led to some truly terrible ideas gaining investment. While it was a horrible mess for a long time and investors collectively lost billions, it did ultimately lead to the emergence of the big players and a stable platform on which growth could thrive. I can’t help but think this is what we may see happen here.
Interestingly, gold has continued to flounder and is still some 15% off its previous all-time high. Such is the time we live in, that even in what we would usually consider to be perfect text book conditions for a flight to safety, it hasn’t really happened. The old rules are dead.
None of this, of course, affects Bitcoin itself and those focussed on developments and adoption continue as normal. President Bukele of El Salvador announced he is “buying a Bitcoin a day” even as the “Adopting Bitcoin ” conference takes place in the country’s capital, thereby publicly confirming his long-term confidence in the currency’s future. Miners may be struggling as the prolonged downturn continues (as can be seen from both Hut8 and Bitfarms reports this week), but in all cases, long term confidence remains extremely high.
Meanwhile, world events continue to unfold. UK inflation hit 11.1%, the highest for 41 years, and standards of living are dropping fast. In the US, the Republicans (finally) managed to secure a small victory in the lower house possibly slowing some of Biden’s policy deployment, but the predicted “red wave” never happened.
The Russians, ever eager to put their “creative” spin on things, announced that the strategic withdrawal of the troops from Kherson was deliberately delayed so as not to “affect the elections” bringing the country to a new level of self-delusion. Watching how this has been covered on Russian state TV is a compelling – if not disturbing – watch.
It’s worth noting that many of the links I provide in these articles come from reputable sources on Twitter, but it’s now clear that Elon Musk’s takeover of the company has not gone well, even to the point of threatening its very existence. He’s a smart lad with an impressive track record, but this does feel like this has gone too far too quickly.
Some big names have even gone so far as deleting their accounts, including Stephen Fry who enjoyed the company of 12 million followers. Twitter is a major influence on modern communication so what happens next will be relevant to millions of people.
Finally, if you enjoy my weekly updates, I’m pleased to announce that I’ll be delivering the Thursday opening keynote at the Crypto AM Summit and Awards next week, discussing global events and the macro-economic situation. If you’re attending, don’t forget to come and say hi!
Have a great weekend!
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Yesterday’s Crypto AM Daily in association with Luno
In the markets
The Bitcoin economy
*Data can be found at https://terminal.bytetree.com/
Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $833.910 billion.
What Bitcoin did yesterday
We closed yesterday – November 17 2022 – at a price of $16,687.52. The daily high yesterday was $16,726.44, and the daily low was $16,460.68.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $321.41 billion. To put it into context, the market cap of gold is $11.641 trillion and Tesla is $569.84 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $28.762 billion. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.
Volatility
The price volatility of Bitcoin over the last 30 days is 53.55%.
Fear and Greed Index
Market sentiment today is 23, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 40.61. Its lowest ever recorded dominance was 37.09 on January 1 2018.
Relative Strength Index (RSI)
The daily RSI is currently 32.13. Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price – an RSI reading of 30 or below indicates an oversold or undervalued condition.
Convince your Nan: Soundbite of the day
“Bitcoin has achieved a level of computing that no single nation state can overthrow it through computation alone.”
Andreas M. Antonopoulos, Author
What they said yesterday
HODLing ftw…
Fast and efficient…
Watch this space…
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Crypto AM: Editor’s picks
Three-in-four wealth managers are gearing up for more cryptocurrency exposure
Crypto.com granted FCA licence to operate in UK
Q&A with Duncan Coutts, Principal Technical Architect at IO Global
Jamie Bartlett – on the trail of the missing ‘Cryptoqueen’
MPs are falling silent over potential of cryptocurrency
Erica’s ‘Crypto Wars’ handed honours in Business Book Awards
‘Let people invest’: Matt Hancock makes case for liberal crypto rules
Explained: Why the Treasury is so sold on stablecoins
Fears crypto is used to avoid sanctions ‘misplaced,’ says Matt Hancock
The cryptocurrency fundraisers behind Ukraine’s military effort
Crypto crazy couple name baby after favourite digital asset
Crypto AM: Features
Crypto AM: Founders Series
Crypto AM: Industry Voices
Crypto AM: Contributors
Crypto AM: In Conversation with James Bowater
Crypto AM: Tomorrow’s Money with Gavin S Brown
Crypto AM: Mixing in the Metaverse with Dr Chris Kacher
Crypto AM: Visions of the Future, Past & Present with Alex Lightman
Crypto AM: Tiptoe through the Crypto with Monty Munford
Crypto AM: Taking a Byte out of Digital Assets with Jonny Fry
Crypto on the catwalk
Crypto AM: Events
For those of you who missed the Crypto AM DeFi & Digital Inclusion online summit 2021 – you can now watch the event in two parts via YouTube
Part One
https://www.youtube.com/watch?v=dvqNMNZTIDE
Part Two
https://www.youtube.com/watch?v=WXhX_-Tr5j0
Cautionary Notes
It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. City PM, Crypto AM and Luno always advise you to obtain your own independent financial advice before investing or trading in cryptocurrency.
All information is correct as of 08:00 BST