The Week In Crypto In Five Graphs (11/3/19)
For those who love both crypto and graphs that tell a compelling story
For those who love both crypto and graphs that tell a compelling story
#1 Monthly Bitcoin Outlook Provides Treasure Trove Of Data & Graphs
Via Delphi Digital , Kevin Kelly & Yan Liberman, Nov. 1
The 26 page report was packed with great data and charts. It started with a review of Bitcoin trading volume during 2019, and how it correlated with price. Volume was very low in Q1 as price sat idle (purple region). Rapidly growing as price took off in Q2 (yellow). Peaking with price at the end of June (green). Falling off heavily post peak, then slowly declining while price held on through consolidation (blue). Finally price caught up to weak volumes through the drop to $8,000 (red). Return to an accumulation phase, as most participants looked for the best possible entry, with volumes (on a rolling 7 day basis) dropping down to levels from late April/early May before Bitcoin broke above $6k. (purple) Rallying once again as Bitcoin finds a likely bottom (indicated by the green region at the end). The entire report is worth a read.
#2 Demand For Bitcoin Is Soaring In Economically Volatile Regions
Via The Coinbase Blog
In Venezuela, Argentina, and Hong Kong, three regions that experienced high economic volatility this year, peer-to-peer BTC exchange LocalBitcoins.com experienced premium prices and surging volume. While most people around the world don’t see a need for bitcoin, in places where monetary breakdowns have occurred, regular folks can easily appreciate the value of bitcoin. It turns out if people have a need, the education part takes care of itself.
#3 The Rise Of Staking
via Binance Research, Oct. 28
It’s interesting to put the total volume staked across Proof of Stake (PoS) networks in context via total value locked across DeFi (e.g. MakerDAO)
While it’s informative to see that more than 50% of tokens are staked in aggregate across PoS, it’s surprising that 43% of holders still don’t stake and get diluted over time. It will be interesting to see how the % staked changes over time.
With Ethereum’s impending transition to PoS, staking is going to gain mindshare in the ecosystem and this report is a great primer and resource for anyone interested in the space.
#4 GBTC Premium Over Net Asset Value Is A Useful Indicator Of Future Bitcoin Price
Via Canacord Genuity, Michael Graham, Oct. 31
The monthly Bitcoin report Canacord publishes is always an informative read. The graphs above relate to the Grayscale Bitcoin Trust (symbol GBTC on the OTCXIt is, arguably, the easiest way to buy bitcoin for those who have brokerage accounts, as its a publicly listed entity that only holds bitcoin. As a result, it has always traded at a premium to net asset value (NAV). And that premium has been pretty volatile over time. GBTC currently holds $1.62 billion of Bitcoin (NAV), and trades at $1.96 billion, a 21% premium to its NAV. Notably, per the charts above, the NAV premium tends to bottom before a rally, and peak before a drop.
#5 Crypto Futures Trading Platform Deribit Encountered Issues With Its BTC Index Calculation Causing A Flash Crash on October 31
Via CoinDesk
Per Derebit, the problem was caused by “one BTC index constituent providing incorrect prices that should have been removed as an outlier in the index calculation. This caused our liquidation engine to initiate erroneous liquidations.” Deribit will reimburse over $1.3 million in losses that resulted from the BTC index calculation data issue.
Coinbase Pro was also affected by the erroneous BTC index as price dropped from $9,260 to $9,055, prompting the exchange to go offline for one hour.
This issue highlights the critical roles that oracles perform and the risks inherent in any decentralized app that leverages an oracle.
Bonus Graph: Extreme Volatility Triggers Use Of Bakkt Bitcoin Futures
H/T Ikigai
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