Francis Yue
hello! Welcome to Distributed Ledger, a weekly crypto newsletter that arrives in your inbox every Thursday. I’m Francis Yue, a crypto reporter for MarketWatch. Introducing the latest information on this bear market.
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Crypt with snap
Bitcoin has risen 13.4% over the past seven days, trading at around $ 22,844 on Thursday, according to CoinDesk data. Ether rose 32% in seven days to about $ 1,534. The meme token Dogecoin has risen 12.8%, while another dog-themed token, the Shiba Inu, has risen 10% from seven days ago.
Cryptographic metrics
Biggest Gainers Price %7-day return
Ethereum Classic $24.21 68.1%
Lido DAO $1.46 56.4%
cETH $29.88 37.9%
Lido Staked Ether $1,461 36.4%
Polygon $0.86 35.5%
Source: CoinGecko as of July 21
Biggest Decliners Price %7-day return
PAX Gold $1,701.34 -2.2%
Tether Gold $1,706.93 -1.2%
LEO Token $5.23 -1.1%
cDAI $0.02 -0.6%
Neutrino USD $0.99 -0.5%
Source: CoinGecko as of July 21
What drives the crypto cycle?
The general story is that the crypto market cycle tends to match half of Bitcoin. This is a process in which the block reward given to crypto miners is cut in half every time 210,000 blocks are mined, or approximately every four years.
According to historical patterns, a Bitcoin halving event is often followed by a one-year bull market, a one-year bear market, and a two-year recovery.
However, according to Matt Hougan, Chief Investment Officer of Bitwise Asset Management, half of Bitcoin may not be enough to explain the crypto cycle.
Half of Bitcoin is not always in sync with the big price fluctuations of cryptocurrencies, Hougan said. Hougan also said that the decline in Bitcoin supply wasn’t enough to drive large-scale price volatility, and investors knew the timing, so half the event should have already been priced. Insisted.
Instead, it was a useful innovation in this area that was driving the market cycle, Hougan said in an interview with MarketWatch.
According to Hougan, Bitcoin’s early 2011 and 2013 rallies were driven by an increase in crypto exchange. For example, Coinbase was founded in 2012.
While the launch of Ethereum in 2015 and the rise of the first coin offering frenzy that followed contributed to the crypto boom in 2017, the bull market in 2021 was primarily decentralized finance and non-fungible token growth and the US SEC’s. Hougan, a futures ETF promoted by Bitcoin approval, pointed out.
The crypto market could remain volatile for the rest of the year, according to Hugan. “We are still at the end of the de-leveraging process,” says Hougan. “We are also dealing with some short-term regulatory headwinds, including those that were expected to be like a turbulent fall of cryptocurrencies from a regulatory perspective.”
However, he expects the cryptocurrency market to begin to take hold in 2023, despite the looming recession. “As we enter the next technology cycle of cryptocurrencies, I think some long-term trends that drive cryptocurrency growth will overwhelm macro trends,” said Hougan.
Tesla Bitcoin Sale
Tesla disposed of 75% of Bitcoin for $ 936 million in the second quarter as cryptocurrency prices plummeted, according to an electric vehicle marker earnings report released Wednesday.
At a phone call, CEO Elon Musk said the sale was made because he was “uncertain” about when the COVID-related blockade in China would diminish and tried to maximize Tesla’s cash position. Stated.
Following Tesla’s results, Musk told analysts that “increasing Bitcoin holdings in the future is certainly open and should not be considered a Bitcoin verdict.” ..
“The shutdown in China was only a concern for the company’s overall liquidity,” Musk added, adding that the company did not sell Dogecoin.
Tesla (TSLA) bought about $ 1.5 billion worth of Bitcoin in early 2021, when cryptocurrencies were trading over $ 30,000, but it is a mobile executive characterized as evidence of liquidity. We sold 10% of the total immediately. According to Chief Financial Officer Zachary Kirkhorn, Tesla’s decline in Bitcoin’s remaining bitcoin resulted in more than $ 100 million in quarterly impairment.
MarketWatch’s Claudia Assis and Jeremy C. Owens have written more about Tesla here.
Cryptographic companies, funds
Coinbase Global Inc. (COIN)’s share price fell 4.4% to $ 72.00 on Thursday, down 5.7% in the last five trading sessions. Michael Saylor’s MicroStrategy Inc. (MSTR) fell 1.8% on Thursday to $ 283.60, but has risen 39% in the last five days.
Mining firm Riot Blockchain Inc. (RIOT)’s share price rose 6.1% on Thursday to $ 5.23, up 61% in the last five days. Marathon Digital Holdings Inc. (MARA)’s share price rose 3% to $ 12.86, up 60.9% in the last five days. Another miner, Ebang International Holdings Inc. (EBON), fell 6.5% to $ 0.56 on Thursday, but has risen 0.3% in the last five days.
Overstock.com Inc. (OSTK)’s share price fell 1.5% to $ 28.65. Stocks increased 13.5% over a five-session period.
Block Inc. (SQ), formerly known as Square, fell 1.2% to $ 73.90, but that week’s share rose 18.5%. Tesla Inc.’s (TSLA) share price rose 10.4% to $ 819.3, up 14.6% in the last five sessions.
PayPal Holdings Inc. (PYPL) was up 2.4% to $ 82.20, up 18.2% in five sessions. Nvidia Corp. (NVDA) shares have risen 17% in the last five days of trading and rose 1% to $ 179.90.
Advanced Micro Devices Inc. (AMD) share price rose 1.4% to $ 90.69 on Thursday, up 15.4% from five trading days ago.
Among crypto funds, ProShares Bitcoin Strategic ETFs (BITOs) were down 3% to $ 14.20 on Thursday, while Short Bitcoin Strategic ETFs (BITIs) were up 3% to $ 34.77. The Valkyrie Bitcoin Strategy ETF (BTF) was down 3.2% to $ 8.84, while the VanEck Bitcoin Strategy ETF (XBTF) was down 3.6% to $ 22.26.
Grayscale Bitcoin Trust (GBTC) was down 3.9% to $ 14.97.
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-Francis Yue
(End) Dow Jones News Wire
07-23-22 1519ET
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