Bitcoin and the broader crypto market were essentially flat over the last seven days.
At the time of writing, bitcoin is trading at US$17,178. Ethereum outperformed bitcoin for the week, up 1.23% vs bitcoin’s 0.97%.
Bitcoin’s market capitalisation is at US$330.4B, with the total crypto market sitting at US$857.2B. Bitcoin’s market dominance is at 38.5%.
| Price | High | Low | Change from previous week | |
| BTC (in US$) | $17,178 | $17,378 | $16,750 | 0.97% |
| ETH (in US$) | $1,274 | $1,302 | $1,224 | 1.23% |
Source: CoinMarketCap. As at 11th Dec. 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
GS looking to spend “tens of millions” on crypto firms
The FTX collapse has not scared investment banking giant Goldman Sachs Group away from crypto. On the contrary, according to an interview with Reuters, global head of digital assets, Mathew McDermott, said the firm is planning to “invest tens of millions of dollars in cryptocurrency companies.” He also said that there is an opportunity for big banks to pick up business given the need for trustworthy and regulated cryptocurrency players in a market where both investor interest and valuations have been hurt, but the underlying technology continues to perform. “We do see some really interesting opportunities, priced much more sensibly,” McDermott said in an interview.1
SEC advises US-listed companies to disclose risks due to crypto
US publicly listed companies are being told to disclose to investors any potential impact from the crypto industry’s recent chaotic events. The US Securities and Exchange Commission (SEC) issued letters to companies, with sample questions asking if they face any risks to their businesses “due to excessive redemptions, withdrawals or a suspension of redemptions or withdrawals, of crypto assets.”
The SEC’s disclosures arm, the Division of Corporation Finance, advised US public companies: “Companies may have disclosure obligations under the federal securities laws related to the direct or indirect impact that these events and collateral events have had or may have on their business.”2
Insto investors continue to show interest in crypto
Institutional registrations on the crypto trading platform Bitstamp were up 57% in November from October, despite the FTX debacle and one of the worst months of the year. Also up in November versus the previous month was total revenue, up 45%, with revenue from institutions up by 34% and from retail traders up 72%. Global retail users also were higher by 43% in the same period, with US based users up by 18%.3
On-chain metrics
Bitcoin (BTC): Realised Price
This metric is the value of all bitcoins at the price they were bought, divided by the number of bitcoins in circulation. This metric reflects the average cost base of the network.
According to data from Glassnode, the market price is currently sitting 14.5% below the realised price. In the last five years, a price discount to realised price hasn’t been this deep or lasted as long since the bear market of 2019.
Source: Glassnode. Past performance is not indicative of future performance.
Bitcoin (BTC): Mining Difficulty
This metric shows the current estimated number of hashes required to mine a block.
According to the data on Glassnode, on 5 December 2022, Bitcoin’s mining difficulty adjustment dropped 7.32% lower, making it the largest difficulty reduction in 2022. The current difficulty will remain at this point for the next two weeks or 2,016 blocks. Bitcoin’s difficulty retarget has dropped, which makes it a bit easier for bitcoin miners to mine a block than it was during the two weeks prior.
Source: Glassnode. Past performance is not indicative of future performance.
Altcoin news
Blockchain gaming token Axie Infinity (AXS), which has had a fall from grace over the last year, managed to be one of the better performers amongst top altcoins, returning more than 21% over the last seven days. Helping push the token higher was an announcement of the ‘Axie Contributor Initiative’ which includes the advancement of its progressive decentralisation strategy with the Axie community.4
According to the Axie Infinity website: “Axie Infinity Shards (AXS) are an ERC 20 governance token for the Axie universe. Holders will shape the future of Axie Infinity by signalling their support for upgrades to the ecosystem and directing usage of a Community Treasury.”
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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://www.reuters.com/technology/goldman-sachs-hunt-bargain-crypto-firms-after-ftx-fiasco-2022-12-06/
2. https://www.coindesk.com/policy/2022/12/08/sec-tells-us-listed-companies-theyd-better-disclose-crypto-damage/
3. https://cointelegraph.com/news/institutional-investors-still-eye-crypto-despite-the-ftx-collapse
4. https://coingape.com/axie-infinity-axs-price-skyrockets-by-28-will-it-breach-10/
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.
2 comments on this
Thanks Justin!
This is an incredibly helpful article for anyone looking to learn more about cryptocurrency. It does an excellent job of breaking down some of the more complex terms in simple terms, making it easier for someone with no prior knowledge to understand. Great work!