Cryptocurrency Market Overview 23.10.2023
News block
1. Tether Reserves in real time
In 2024, Tether will start reporting on USDT reserves in real time
In an interview with Bloomberg, the recently appointed CEO of Tether, Paolo Ardoino, shared his plans for the development of the USDT issuer for 2024. They include the publication of data on the provision of a "stable coin", increased investment in technology, negotiations with regulators and the development of renewable energy sources.
At the end of the second quarter, Tether reported $850 million in net profit. According to the document, 85% of the USDT collateral is accounted for by cash and cash equivalents. In September, the company became the 22nd largest buyer of U.S. Treasury bonds with their reserves of $72.5 billion.
Earlier, Ardoino stated that the high profitability of the issuer makes it possible to consider new business directions. After that, the company invested $1 billion in a BTC mining project in El Salvador, and also spent $420 million to buy 10,000 H100 chips from Nvidia.
2. Google Trends: Peak interest in Bitcoin ETFs
According to the Google Trends analytics service, the number of requests for the keyword "spot bitcoin etf" in Google's international search has reached peak values, which indicates the maximum interest in this topic from ordinary users.
Information about the frequency of requests shows that people are increasingly looking for information about bitcoin ETFs on the Internet. They are also interested in what impact the expected approval of such funds by the U.S. Securities and Exchange Commission (SEC) may have on the first cryptocurrency.
3. Binance will stop serving Visa cards in Europe
The Binance cryptocurrency exchange has announced the termination of issuing and servicing a Visa debit card in the European Economic Area.
Owners of physical or virtual Binance Visa will be able to use them until December 20, 2023.
As an alternative, the company offers Binance Pay.
Overview of the crypto market
🔸 The current capitalization of the crypto market is $1.212 trillion
🔸 Trading volume for the last day is $46.90 billion
🔸 BTC dominance 49.6%
🔸 Fear and greed index:
- today 53, yesterday 53, a week ago 52
where 0 is extreme fear (may be a sign that investors are too scared - often it's a good time to buy), and 100 is extreme greed (the market needs correction).
Today, the BTC price has risen to a two-month high. The first cryptocurrency is trading at $30,800. At the same time, a number of altcoins (SOL, LINK, APT) show a double-digit percentage of growth over the past day.
Keith Alan, co-founder of the Material Indicators monitoring resource, noted that fixing the price above the 100-week moving average (MA) at $28,627 was of particular importance.
"Some may consider this confirmation of a bullish breakout, but this market is known for squizzes and false outs, so I'm looking for more confirmations. In my opinion, the BTC price also needs to overcome the previous resistances at the levels of $30,500, $31,500 and $33,000 to call the bullish breakout confirmed."
The positive about the "mass adoption" of bitcoin ETFs continues to fuel the market.
Chainlink: 3-month peak activity
This weekend, Chainlink (LINK) was at the peak of popularity: the network saw 3-month highs in the number of whale transactions, unique interacting addresses and trading volume:
However, it should be borne in mind that LINK is already significantly overheated. History shows that the last three times when the MVRV 30D indicator exceeded 20%, LINK underwent a sharp correction. And now the MVRV 30D value for LINK has again exceeded 20%:
Behavior of short-term BTC holders
The behavior of short—term holders is one of the most important parameters that should be monitored. The analysis of this indicator is one of the best methods for assessing the long—term prospects of bitcoin.
Usually, the bottom of the BTC price is formed with a significant reduction in assets owned by short-term holders. These holders often sell a significant portion of their assets in response to bearish market pressure. And vice versa — short-term holders tend to significantly increase their BTC reserves at peak market values.
At the bottom of the market in 2015, short-term holders controlled 11% of the realized capitalization of BTC. In 2018-2019, this percentage decreased to 8.6%, and currently stands at only 6% in 2023.
This indicates that in the price cycle of 2023, the level of confidence and hopes among new investors to buy and hold BTC has significantly decreased:
