Analytical material on cryptocurrencies 15.05.2023
News
1. Ethereum Developers Fix Bugs
Ethereum developers have released updates for Prysm and Teku clients in response to recent block finalisation issues. Last week, the Ethereum blockchain faced similar technical problems twice.
The timely response of the Ethereum community is certainly a good sign, but at the same time, such situations are a reminder that the Ethereum blockchain is still under development.
2. American Crypto Firms are Moving to Bermuda
As the regulatory environment in the United States becomes increasingly tough, American crypto companies are eyeing new jurisdictions.
Bermuda has already licensed companies such as Block and Circle. The offshore company has spent the last five years creating and refining its digital asset system and adopting appropriate legislation.
3. Zimbabwe has started selling gold-backed digital tokens
On May 12, the Central Bank of Zimbabwe announced that it had received 135 applications totaling 14.07 billion Zimbabwean dollars ($39 million) for the purchase of a gold-backed cryptocurrency.
The tokens were sold at a minimum price of $10 for individuals and $5,000 for organizations. The minimum period of token ownership is 180 days.
It is reported that this step is part of efforts to stabilize the country's economy and the ongoing depreciation of the local currency against the US dollar.
The International Monetary Fund opposed such a plan by an African country and advised Zimbabwe to liberalize its own foreign exchange market.
Crypto Market Statistics
The current capitalization of the crypto market is $1.19 trillion
Trading volume for the last day is $31.5 billion
BTC dominance is 44.6% (declining, in the first half of the month this figure exceeded 45%)
Fear and greed index (0 is extreme fear, and 100 is extreme greed):
- today 50, yesterday 48, a week ago 51
Leaders of growth and decline. In the TOP 100 cryptocurrencies for the last day:
- the largest growth is shown by: CFX (+12.3%), SUI (+10.8%), KAS (+8.1%), TON (+6.6%), RPL (+5.9%)
- the strongest drop is: PEPE (-8.8%), KLAY (-6.7%)
Bitcoin
The US government continues to control about 206 thousand BTC, which it received as a result of seizures in the Silk Road case and the hacking of the Bitfinex exchange. The next rumors about the sale of these BTC have not been confirmed.
The fall in the price of bitcoin in 2022 led to an increase in the number of addresses that own more than 1 BTC — they reached one million:
And although bitcoin strives for decentralization, the distribution of wealth in the network is quite concentrated:
- less than one BTC on the balance sheet contains 46.5 million addresses. These addresses account for 7% of the total coin supply (1.356 million BTC worth $36.4 billion);
- the remaining 93% of the supply (18 million BTC worth $482.7 billion) are distributed to one million addresses that own a full BTC or more.
Thus, addresses containing more than 1 BTC account for about 2.1% of all non-zero bitcoin addresses.
CoinGlass data shows that today only 1.89 million BTC ($50.7 billion) are placed on crypto exchanges, which is about a tenth of the total coin supply.
Today we will consider such an indicator as MVRV Z-Score - this is a long-term trend indicator that is used to determine periods when BTC is extremely overbought or undervalued.
This indicator was able to pick up the market maximum of each cycle with an accuracy of up to two weeks.
Pink block - indicates the top of the market cycles. This is always a good time to take profits and exit the market.
Green block - indicates when the market value of BTC is much lower than the realized value. Buying bitcoin during these periods has historically brought huge profits.
Current MVRV Z-Score = 0.7
According to this indicator, the current BTC price is still close to the block, which has historically been excellent for buying the first cryptocurrency in the long term.
