Last week was an extremely volatile week for the market. See the Crypto market weekly report 51th below.
WEEK in REVIEW AROUND THE WORLD
- Our newest structured product, the Bitcoin Discount Note, is now available and is perfect for investors who have a stable to somewhat positive view on the cryptocurrency. It allows investors to take a long position in Bitcoin at a price below market value under certain expiry conditions. *Only for wholesale investors.
By 2030, the global market for blockchain gaming is anticipated to grow to $600 billion. - The US SEC rejects Coinbase’s “unwarranted” quest for cryptocurrency laws.
- Blockchain will be used by the Chinese government to verify identities.
- Bitcoin inscriptions are included to the US national vulnerability database’s records.
- In a landmark NYSC lawsuit, KuCoin consents to a $22 million settlement and a ban on NY users.
- Solana phone sales SAGA rise as buyers look for the airdrop of BONK tokens.
- FOMC: US inflation slows to 3.1% annual rate in November; Federal Reserve keeps rates unchanged but is open to discussing rate decreases soon; Chair Powell cites “signs of economy normalizing.”
- The European Central Bank lowers its inflation prediction while holding rates steady.
- October’s m/m GDP data for the UK indicates that the economy shrank once more; rates were maintained at 5.25% after the publishing of the policy summary, and 2% inflation is still the goal.
Market Overview – Crypto market weekly report 51th
1.1 Bitcoin Overview
- The week ended with BTC and ETH down 5.60 and 6.5% on the cryptocurrency market, while US equities set record highs last week accompanied by a dovish Fed. As everyone takes a well-earned vacation, expect gaps inside the range as we approach the lower liquidity Christmas period.
- A sustained higher trend in stocks might be advantageous for the cryptocurrency market, especially if additional spot Bitcoin ETFs follow the one that was unveiled in January. As we approach Q1, 2024, the impending halving ought to start to feature in the story.
- However, as of right now, there is no rolling spot correlation between cryptocurrencies and stocks.
Alternatives and Protocols
- Dec. 14 marked the beginning of an eventful week for DeFi. Because a malevolent actor took advantage of a weakness in the connector library of the Ledger hardware wallet, the entire ecosystem of decentralised applications (DApps) was at serious risk. Prominent DApps like as SushiSwap and MetaMask, along with on-chain researchers, advised users to avoid wallet interactions. In a few of hours, Ledger addressed and contained the issue with a fix.
- This raises the question of asset security in the DeFi domain once more. Watch out for more improvements from MPC custodians, as their connected security tendencies to surpass that of native cold hardware wallet solutions.
- On December 14, a significant week in DeFi’s history began to take shape. The entire ecosystem of decentralised applications (DApps) was at danger when a malevolent actor took advantage of a weakness in the connector library of the Ledger hardware wallet. Prominent DApps like SushiSwap and MetaMask, along with on-chain researchers, advised users against interacting with wallets. Ledger addressed and contained the vulnerability quickly, providing a patch in a matter of hours.
- This raises the asset security concern in the DeFi domain once more. In terms of connectivity security, MPC custodians are generally more innovative than native cold hardware wallet solutions, so keep an eye out for this trend.
Crypto (Digital Assets) compared with global equity
This study provides a thorough analysis contrasting the performance of shares on international capital markets, as represented by the Dow Jones Global W1Dow index, with digital assets, as denoted by the NWST1100 index. The comparison covers a range of time periods and provides information on past, present, and possible future trends.
Let’s examine the main findings and ramifications:
Comparing historical performance:
- 25 months ago With a record high quotient between the two indexes, digital assets, represented by the NWST1100 index, were beating shares on capital markets, represented by the W1Dow index. At this point, the performance trajectory of digital assets was noticeably better than that of equities on international capital markets.
- One year ago: When we go back a year, digital assets were clearly superior to shares, surpassing them by 76.7%. The performance data highlights the higher returns that digital assets provide compared to equities over the given time frame.
Recent Performance Shift:
- The performance of digital assets has significantly improved in the last year, according to study. They have outperformed equities by a substantial 89.1% on international capital markets. The performance data highlights the higher returns that digital assets provide compared to equities over the given time frame.
Mean Reversion Opportunity:
- The average quotient price over the past 143 working days is plotted as a blue dashed curve (5.78). Currently, this average sits below its long-run mean, hovering around 7.47. However, the spot price is 7.71.
- The mean reversion theory suggests that asset prices, over time, tend to revert to their historical average returns. The current average quotient price at the long-run mean could imply that digital assets are currently valued compared to historical trends.
Comparison of Returns:
- During the previous 12 months, the chart also shows the returns obtained with the stock by purchasing one point of the corresponding index every day.
- The NWST1100 Crypto Index saw a 95.44% increase in value compared to the same time last year. An investor’s stock would have increased by 48.9% relative to the index’s current price if they had invested in it on a daily basis.
The DJW, which represents global capital market shares, increased by 11.96% last year in contrast to the crypto index. A daily purchasing approach, however, would have produced a 6.0% gain. - With the verified favorable relationship between digital assets and global capital market shares, expectations are high right now. As we move through this bullish phase, digital assets that were bought over the previous year at an average price of 2726 points appear ready to provide amplified profits in comparison to equities.
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