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Crypto News: A Weekly Review

On Nov. 29, the Bitcoin price showed a few optimistic signs, prompting investors to weigh in on why BTC should end November beyond $60,000. The cryptocurrency market gained momentum as the price of Bitcoin (BTC) surpassed $58,000 in a long-awaited event that encouraged traders who had been waiting for the upswing to commence.

 

Although Bitcoin’s unexpected rise above $58,000 took some traders off surprise, the independent market expert believes the current price movement is proceeding as predicted. Here are just a few interesting examples of what sparked the cryptocurrency market:



Cardano Active Addresses Shoots To New Highs Amid Downtrend

Activity on Cardano has gone up significantly in just the past few weeks, showing an inversely correlated pattern with the price of the digital asset. The number of active addresses had hit its highest point back in October when the number of active Cardano addresses broke towards 250,000. Over 100,000 new wallet addresses were added to the Cardano network in the month of November, eventually peaking at approximately $2.



Finding Fibonacci: Is Bitcoin Beginning A “Golden” Recovery?

 

The Bitcoin daily bounced precisely at the 0.618 Fibonacci retracement level on November 23. Friday’s post-Thanksgiving selloff paused exactly at the same level, as did the following Saturday’s close. A recovery started to close out the weekly candle more than $3,000 higher. Drawing Fibonacci levels is done from the swing high to swing low, or vice versa. The Golden Ratio of 1.618 has acted as the over the mid-cycle bottom the past three bull cycles. It is from this level that the final stages of the bull run unfold.



Report Shows Institutional Investors Are Abandoning Bitcoin For Altcoins

 

Institutional interest in Bitcoin had dropped significantly in the month of November. Total BTC AUM ( Assets Under Management) fell 9.5% to $48 billion this month. Across the market, total digital asset AUM had also dropped 5.5%. This makes it one of the largest pullback months for 2021. Trading volumes for all digital assets had dropped 13% to an average of $732 million per day.

 

However, altcoins had maintained momentum and secured the most gains for investors. Etheruem’s AUM grew 5.4% for the month of November to $16.6 billion.

 

El Salvador Buys Bitcoin Dip As Omicron Variant Ravages Market

 

President Nayib Bukele announced on Twitter that the country had bought an additional 100 BTC at a discount. The country’s total Bitcoin holdings now stand at 1,120 BTC. El Salvador’s President Nayib Bukele has responded to the Bank of England’s concerns over the country’s decision to accept Bitcoin as legal tender. In a sarcastic response, the president said that the bank’s interest in the well-being of El Salvador was genuine.

 

Hackers Are Now Using Compromised Cloud Accounts To Mine Crypto

 

Crypto mining is a computationally intensive activity. Hackers are exploiting poorly configured cloud accounts to mine crypto, Google warned users in a recent report. The company analyzed 50 compromised Google Cloud accounts and found 86% were related to crypto mining. Users can see the report titled “Threat Horizons” here. A North Korean-backed group posed as Samsung recruiters, sending fake job offers to Google Cloud users.

 

Hackers attached a malicious link to malware stored in Google Drive. Black Matter ransomware group announced it was shutting down earlier this month but Google still sees them as a risk.

 

Solana Could Become The Next Bitcoin, According To FTX’s Sam Bankman-Fried

 

The 29-year old crypto founder has a net worth of $22.5 billion, making him the youngest person to enter the Forbes rich list after Mark Zuckerberg. Bankman-Fried believes projects with loyal followers and important use-cases are more likely to survive in a crash. Solana is one of the few blockchains that have a plausible roadmap to scale millions of transactions per second, according to Bankman-Fried. Subsequently, many have dubbed the network “ethereum killer” Solana could potentially be the base for more DeFi applications in the future.

 

Australian Super Rest Retirement Fund To Invest In Cryptocurrencies

 

The Australia Rest Super will be the first of its type to invest in crypto investment. The company’s Chief Investment Officer acknowledged the volatility of such crypto investments. But he said that their allocation to the investment is a part of diversifying their portfolio. With about 1.8M members, Rest Super’s assets under management (AUM) are worth $46.8 billion. However, superannuation is mandatory for all Australian employees.

 

The Australian Rest Super. Paul Schroder, the Chief Executive of the $167 billion funds, stated that crypto is not an investment option for their members. Queensland Investment Corporation (QIC), an investment fund owned by the state, is considering embracing cryptocurrency. Also, the Commonwealth Bank of Australia (CBA) intends to offer cryptocurrency trading earlier in the month. The Head of Currency at QIC, Stuart Simmons, said he wants superannuation funds to embrace cryptocurrency.

 

Whales Fill Up On Bitcoin While Broader Market Panics

 

Whales have always been known to gobble up the bitcoins that small-time investors unload during periods of panic. In one week alone, these whale wallets have accumulated about $3.3 billion worth of bitcoin, which amounts to an additional 0.29% of the circulating supply. The index had remained in greed territory for the better part of last month. The Fear & Greed Index score continued to drop, hitting a new two-month low after dropping to 32 on Thursday. This puts the market in full panic mode leading to more sell-offs in the market.



Kaspersky Experts Assess The Biggest Cyberthreats In Crypto For 2022

 

Kaspersky released its annual “Cyberthreats to financial organizations” paper. The cybersecurity experts and antivirus manufacturers predict both cybercriminals and state-sponsored actors will target cryptocurrencies. Kaspersky: Cryptocurrency is attractive because it’s a digital asset and all transactions occur online. Cybersecurity company Kaspersky has released a report on the “Cyberthreats to financial organizations”. They predict “an exponential growth in infostealers,” and a rise in ransomware from “small regionally derived groups”. Plus, data breaches in Open Banking, Mobile Banking Trojans, and remote workers using company equipment for entertainment.

 

Over 1 Million ETH Has Been Burned Since Ethereum EIP-1559

 

ETH Burned Clocks 1 million on Wednesday. The total amount of ETH burned comes out to over $4.2 billion. Prior to EIP-1559, the volume would have gone into circulation, increasing the amount of circulating ETH, contributing to the inflationary nature of ETH. ETH being put into circulation per mined block has reduced significantly. Net issuance on the network is currently sitting at 490,400 at the time of this writing. Analysts have put the digital asset at $5,000 by year-end, propelled by the growth of DeFi.

 

Why Hillary Clinton Warns Biden Administration To Regulate Crypto Market

 

Hillary Clinton has called on the Biden administration to regulate cryptocurrencies. The former Secretary of State believes state and nonstate actors manipulate the role of the U.S. dollar. Is the U.S. Marching Towards More Crypto Hostility? Hillary Clinton believes the “interesting and somewhat exotic effort” of crypto mining can undermine the role of the dollar. Jerome Powell has been warry around cryptocurrencies, but he would not opt for a ban, but regulatory controls.

 

Shiba Inu Continues To Struggle As Price Declines 17% In Past Week

 

Memecoin Shiba Inu has continued to struggle this week. The crypto has lost 17% in value over the past seven days. DOGE has also seen losses recently, but they have been lesser than what SHIB has experienced. Currently, SHIB is the number twelve crypto in terms of market cap. Shiba Inu seems to be building a significant lead over Dogecoin in terms of market cap.

 

The reason behind the coin’s recent downtrend may be that whales have started to sell. Whale transactions involve transfers that involve values greater than $100k and $1M

 

JPMorgan Lists Ethereum As A Better Investment Than Bitcoin

 

Analysts at JPMorgan recently released a report on cryptocurrencies and their potential. The report outlined how Etheruem could prove to be the better bet compared to Bitcoin in the long wrong. As interest and inflation rates rise, more investors will flock towards decentralized finance (DeFi) protocols. JPMorgan says that the DeFi, gaming, and stable coins portion of the market makes it a “safer bet” than Bitcoin. The digital asset has consistently outperformed Bitcoin year-over-year. In five years,  Ethereum has grown to about half the total market cap of Bitcoin.

 

How Do Crypto Profits Impact The Housing Market? An Informal Report

 

Rick Palacios Jr. conducted an informal survey on the impact of cryptocurrencies on the housing market. The results are surprising, to say the least. 20% of respondents said they used profits from crypto and/or NFTs to help with the down payment on a home. The percentage of home buyers documenting crypto accounts during mortgage underwriting has gone from almost 0% one year ago to between 5% and 10% today. Most lenders and builders estimate the percentage at about 5% or less, but 10% to 15% in some communities.

 

Collins Dictionary Picks “NFT” As 2021’s Word Of The Year

 

“NFT” is one of three tech-based words to make Collins’ longer list of ten words of the year, which includes seven words brand new to CollinsDiction.com. NFTs is the abbreviation of ‘non-fungible token’, the unique digital identifier that records ownership of a digital asset. The WOTY has been declared a Word Of The Year since 1990. This year it was “Covid,” and in 2021 the tech world took back the throne with “NFT”. And what’s really captured the public’s imagination around NFTs is the use of this technology to sell art.  

 

Ripple Partners With Republic Of Palau To Develop National Digital Currency

 

Digital payment network Ripple has partnered with the Republic of Palau to develop its own digital currency. Like El Salvador, the country does not have its own fiat currency or even a Central Bank. Its legal tender, instead, is the U.S. dollar. Ripple plans to implement the national stablecoin in the first half of 2022. Palau chose to create its digital currency on XRP Ledger (XRPL) as an alternative to central bank digital currencies (CBDCs). Being carbon-neutral and 120,000x more energy-efficient than proof-of-work blockchains is an added advantage.

 

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Any opinions, news, research, analyses, prices or other information discussed in this presentation or linked to from this presentation are provided as general market commentary and do not constitute investment advice.

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