Triaconta Weekly #185
The following topics will be addressed in this weekly.
- Bundle performance
- Winners and losers
- Market overview
October is generally a great month for Bitcoin and the rest of the market. This week is clearly Bitcoin week and not Altcoin week. New money does enter the market and that mainly goes to number 1. Money that is in other currencies also shifts to Bitcoin. The consensus is that investors are anticipating approval next week for one of the US Bitcoin ETF applications by the SEC. See also the agenda at the bottom of the market overview.
1 Month: +16.35% | 7D: +3.52% | 24H: +1.94%
1 Month: -4.70% | 7D: -4.21% | 24H: -2.20%
1 Month: -8.16% | 7D: -7.48% | 24H: -2.41%
1 Month: -2.47% | 7D: -9.07% | 24H: -2.47%
Winners and Losers
Parachains give Polkadot (+19%) the most profit this week. Number 2 is Bitcoin (+10%), which we can’t often mention here. Furthermore, Waves (+9%), Binance coin (+9%) are also doing fine. There were losers all over the market as a lot of value went to the growth of #1 Bitcoin. Quarkchain (-32%) is correcting after last week’s rally. DeFi hasn’t been doing too well this past week with Terra (-18%), Avalanche (-14%) and Reserve Rights (-14%).
According to the latest Bitcoin mining data from Cambridge University, America has doubled its share of the Bitcoin hashrate in the past year and is now the largest provider of computing power for Bitcoin in the world at 35.4%. Followed by Kazakhstan, Russia and Canada, the role of China seems to have been completely taken over. However, remember that most Bitcoin mining equipment still comes from China and China has great economic influence in Kazakhstan. So news from this country will still continue to influence the Bitcoin price.
5 years after revealing their vision in the Polkadot Whitepaper, the first parachains can be launched from November 11. Parachains are so incredibly important because they provide a solution to one of the biggest problems of many cryptocurrencies; Scaling – in other words the processing of increasingly larger numbers of transactions. In most blockchains, transactions still have to be processed one at a time. This results in congestion and transaction costs skyrocket when it is busy. Parachains allow the processing of multiple transactions at the same time and can have specific properties appropriate to the purpose of the parachain. The result of this is that the entire system becomes many times faster. This while safety is guaranteed because a central safety system still exists.
Litecoin turned 10 this week and this primal crypto coin has been in the Top 30 since the beginning of Triaconta, currently number 15. The reason the coin is holding up so well is its ease of use and transparency from the start ( no pre-mine). The blockchain is fast enough to verify payments in minutes and transaction costs are always low. Worldwide, Bitcoin is one of the most accepted cryptocurrencies.
Ripple announces it has joined the Digital Pound Foundation, an organization focused on developing and implementing a digital pound in the UK. Joining the Foundation continues their work to support global central banks on technical and policy issues related to central bank digital currencies (CBDCs), according to Ripple. Ripple is already working with the government of Bhutan on a CDBC for this country and a new report from the French central bank also states that Ripple’s payment platform and the XRP cryptocurrency are much more suitable for a CDBC than Bitcoin or Ethereum.
The International Monetary Fund (IMF) has concluded that crypto now has the potential to put pressure on the banking sector. In a new report, the IMF says technological innovation is changing financial services. The report notes that the banking sector will lose market share as the crypto ecosystem grows into a mainstream alternative to bank deposits or lending options. Last week, researchers at the US Federal Reserve also said something similar, namely that digital assets could pose a threat to the supremacy of the US dollar.
Fund managers believe that an ETF with Bitcoin futures is more likely than an ETF with real Bitcoin, because the futures market is already regulated. Whether investors are waiting for a derivative of a derivative of Bitcoin remains to be seen. In the coming week, the planned SEC Bitcoin ETF decisions will set the news.
October 18 Proshares Bitcoin Futures ETF
October 19 Invesco Bitcoin Futures ETF
October 25 Valkyrie Bitcoin Futures ETF
October 25 VanEck Bitcoin Futures ETF