The broader crypto market broke out last week, with bitcoin hitting a 6-week high. Propelling the market higher were growing expectations of a shift towards a less aggressive tightening policy.
At the time of writing, bitcoin is trading at around US$20,878. Ethereum outperformed bitcoin for the week, up 24.96% vs bitcoin’s 8.99%.
Bitcoin’s market cap is up to US$401.3B, with the total crypto market rising to US$1.03T. Bitcoin’s market dominance fell to 38.85%.
| Price | High | Low | Change from previous week | |
| BTC (in US$) | $20,878 | $20,998 | $19,124 | 8.99% |
| ETH (in US$) | $1,634 | $1,652 | $1,302 | 24.96% |
Source: CoinMarketCap. As at 30 October 2022. Past performance is not indicative of future performance. Performance is shown in US dollars and does not take into account any USD/AUD currency movements.
Source: Glassnode. Past performance is not indicative of future performance.
Crypto news we’re watching
Visa’s new trademark applications
Financial services company Visa has filed two trademark applications covering products and services across crypto, NFTs and the metaverse. Visa has been getting more involved in the crypto and blockchain space over the last couple of years. The applications cover providing virtual environments, a collectible series of NFTs, and a cryptocurrency wallet.
Mike Kondoudis, a USPTO-licensed trademark attorney, tweeted: “Visa has filed 2 trademark applications claiming plans for managing digital, virtual, and cryptocurrency transactions, digital currency + cryptocurrency wallets, NFTs + virtual goods, providing virtual environments … and more.”1
Bitcoin miner on the brink
Core Scientific, the largest publicly traded bitcoin miner, could file for bankruptcy if its financial situation does not improve. Projections have Core Scientific possibly running out of cash by the end of 2022. After the news broke last week, shares fell to US$0.26 from $1.02 the day before, and now trade at just $0.20. Negatively impacting the performance of the miner are the current bitcoin bear market, the rise in energy costs and increased competition.
Core Scientific entered Nasdaq earlier this year through a US$4.3 billion merger with Power & Digital Infrastructure Acquisition Corporation. Last month Core Scientific owned 1,051 BTC and US$29.5 million in cash, but that has dwindled down to just 24 BTC and about US$26.6 million in cash. The company is seeking alternatives to raise additional capital and has hired a team to help with its current problems.2
TASE to launch crypto exchange
The Tel Aviv Stock Exchange (TASE) plans to set-up a blockchain-based digital asset trading platform. The exchange has set out a strategic plan to implement within five years. Other goals within the plan are to explore the use of distributed ledger technology and promote the implementation of innovative technologies.
Regulators and lawmakers in Israel are supporting regulated crypto activity. Earlier this year the first licences for crypto service providers were handed out and a blockchain-based digital state bond is currently being worked on by the Ministry of Finance and TASE.3
On-chain metrics
Bitcoin (BTC): Purpose Bitcoin ETF Holdings
This metric looks at the number of bitcoin in the Purpose Bitcoin ETF. This can be viewed as one proxy for institutional fund flows.
According to data from Glassnode, sourced from Purpose Investments, since its peak back in June 2022 of 47,818 bitcoin, spot holdings have shown a lack of investor demand at the institutional level. Bitcoin holdings are down to 23,460 and in recent months have seen little activity despite a small bump and retrace back in August.
Source: Glassnode. Past performance is not indicative of future performance.
Ethereum (ETH): Burned Supply
This metric shows the total amount of ETH burned since the London Fork (EIP-1559) which made Ethereum a deflationary asset.
According to the data on Glassnode, more than 2.6 million ETH have been burned, meaning these tokens have indefinitely been removed from circulation, reducing its supply.
Source: Glassnode. Past performance is not indicative of future performance.
Altcoin news
In altcoin news, Dogecoin (DOGE) shot up in price after Elon Musk posted a video on Twitter of him entering Twitter headquarters on 27 October. Musk finalised the deal to officially acquire Twitter the day after, and DOGE continued to shoot higher, returning over 126% over the last 7 days to 30 October, placing it back in the top 10 largest cryptocurrencies with a market cap of $17.7B.
Musk has been a vocal supporter of Doge in the past and has admitted to owning Dogecoin in his personal portfolio. Historically, the meme coin has tended to rise in price whenever Musk has done something of significance with any of his companies.4
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Investing in crypto assets or companies servicing crypto-asset markets should be considered very high risk. Exposure to crypto assets involves substantially higher risk when compared to traditional investments due to their speculative nature and the very high volatility of crypto-asset markets. Investing in crypto assets or crypto-focused companies is not suitable for all investors and should only be considered by investors who (i) fully understand their features and risks or after consulting a professional financial adviser, and (ii) who have a very high tolerance for risk and the capacity to absorb a rapid loss of some or all of their investment. Any investment in crypto assets or crypto- focused companies should only be considered as a very small component of an investor’s overall portfolio. |
1. https://news.bitcoin.com/visa-files-trademark-applications-covering-a-range-of-cryptocurrency-products-including-crypto-wallet/
2. https://www.coindesk.com/business/2022/10/27/core-scientific-to-suspend-payments-as-cash-dwindles/
3. https://www.coindesk.com/business/2022/10/24/tel-aviv-stock-exchange-to-set-up-platform-for-digital-assets/?fbclid=IwAR1jPp_WvSt2SANbCZYydWhNYCFsHxPcyMMaqS9dvsPqkEJ2t_rjgqWl_Dc
4. https://cryptopotato.com/dogecoin-skyrockets-22-as-elon-musk-visited-twitter-hq-ahead-of-purchase/
Off the Chain is published every Tuesday. It provides the latest news on bitcoin and the rest of the crypto market, along with analysis and insights into the world of crypto.
It provides general information only and is not a recommendation to invest in any crypto asset, crypto-focused company or investment product.
Written by
Justin Arzadon
Director, Adviser Services & Head of Digital Assets.
C4 Certified Bitcoin Professional (CBP) and Blockchain Council Certified Bitcoin Expert™ with over 18 years’ experience in the ETF market. Passionate about the future of money.
Read more from Justin.