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2023-03-12 17:41:43
Market situation
Yesterday, US stocks continued to be a gaining session. The Dow Jones rose 1.6%, the S&P 500 gained 1.49% and the Nasdaq gained 1.54%. Stock futures also rose slightly. Gold is at 1825 USD/ounce. Oil is around 78 USD/barrel.
Bitcoin is still around $16,800. Altcoins do not have much change in price.
According to the National Association of Realtors, existing home sales fell 7.7% in November from October as interest rates continued to be very high. The seasonally adjusted annual rate is 4.09 million units. This was lower than the 4.17 million units that housing analysts had predicted, and it was a much deeper drop than the usual monthly drop.
Sales fell 35.4% year-on-year, marking the tenth consecutive month of decline. This is the weakest pace since November 2010, excluding May 2020, when sales fell sharply, albeit briefly, in the early days of the Covid pandemic.
Although home sales and sales have slowed significantly due to high interest rates, home prices have not fallen much. This can be explained by the number of homes available for sale on the market not increasing. One factor that can cause house prices to plummet is the rising unemployment rate. However, when unemployment rises sharply, the Fed will adjust to lower interest rates to stimulate the economy.
Update on FTX
FTX founder Sam Bankman-Fried accepted extradition and flew to New York Wednesday night after a series of chaotic and controversial courtroom hearings in the Bahamas. His attorney, Jerone Roberts, read from an affidavit signed on December 20 that told the court that Bankman-Fried agreed to extradition in part out of a “desire to deal with the full range of clients who have relate to”. Therefore, the SBF’s previous trial’s refusal to extradite may be a strategy from the attorney to give him a negotiating advantage with the New York law enforcement department.
The PAC Senate majority plans to return donations from Sam Bankman-Fried and the company’s former chief technical officer, Nishad Singh. According to Federal Election Commission filings, the super PAC received $2 million in donations from Singh and $1 million from the SBF during the 2022 election cycle. Other Democratic-affiliated groups said they will return donations from FTX executives.
“We will send the funds in question wherever the authorities direct us,” said House Majority PAC spokesman CJ Warnke. Bankman-Fried donated $6 million to the PAC in April, according to an FEC filing.
Two other individuals, FTX co-founder Gary Wang and former Alameda Research co-CEO Caroline Ellison, have both pleaded guilty to federal charges in the Southern District of New York. At the same time, both the CFTC and the SEC have brought civil claims against them.
Elon Musk is looking for a new CEO for Twitter
Yesterday, Elon Musk announced on Twitter that he is looking for a suitable person to replace him as CEO for this social network. He will then focus on Twitter’s software and services.
Twitter is a hugely influential social networking platform. At the same time, they are also having a crypto expansion strategy. Currently, Twitter also has certain applications such as NFT, crypto tips, …
Twitter shareholders are also delighted that Elon Musk has made this decision. Because since he owns Twitter, it has confused investors’ information. In addition, he spent too much time on this social networking platform, which negatively affected Tesla stock. Shares of Tesla fell similar to other electric vehicle company stocks like Rivian, but fell more than other established car companies like Ford and slightly less than technology stocks.
Coinbase Report on Crypto in 2023
Yesterday, Coinbase shared study as well as their outlook on the crypto market next year. The Coinbase report mainly revolves around the current crypto market landscape.
In its report, Coinbase shared three big predictions about the state of the crypto market in 2023.
First, Coinbase says that investment companies and funds will continue to invest in the crypto market. Coinbase has conducted a survey on the thoughts of investors and institutions with the crypto market in the near future. The results show that 53.6% of participants think that the price of BTC next year will fluctuate around a certain price range, neither higher nor lower than it is now; 29.3% think prices will go lower, 7.9% say prices next year will be higher; the remaining 9.3% have no thoughts or judgments about next year’s prices. In summary, the majority of investment firms believe that the price of BTC will fluctuate around a certain price range. At the same time, the investment trend of investors will still focus on big coins like BTC, ETH.
As for the current selling, Coinbase said that, if the market does not have an unexpected black swan event, the selling force will mainly come from miners. They statistic that the average mining companies are having difficulty, they are selling their mining volume and the average BTC reserve is 130% of the BTC they are mining daily. However, this year, a number of BTC mining companies have filed for bankruptcy such as Core Scientific, Compute North or Argo Blockchain company is on the verge, … There are also companies with good financial projections or no debt. still profitable when mining BTC like Northern Data.
For cryptocurrencies in particular, the insolvency and debt relief events of 2022 have led to a crisis of confidence that Coinbase believes can extend the bear cycle for at least a few more months. Liquidity constraints can also disrupt normal market operations in the short term as many institutions assume assets are locked up in FTX bankruptcy proceedings.
In addition to macro events such as interest rates, inflation, the risk of economic recession, etc., Coinbase also mentioned the big crypto event that needs attention, the exchange of Mt. Gox will return funds to victims of the 2017 hack.
Second, Coinbase says, new innovations will continue to create new opportunities in 2023. They emphasized that NFT will continue to grow. It is not just simple shapes that can be used as intellectual property or have many other uses.
Ultimately, Coinbase says next year will be the purification for the market. Weak companies or bad projects will be eliminated. And good companies and projects will continue to develop. Similarly, investors with confidence will also continue to stay in the market.
Russia tests the use of international payments in crypto
The Central Bank of Russia plans to use cryptocurrencies for cross-border payments in trials with private companies. The trial will be conducted under a special regulatory regime currently under development. In the context of sanctions, Russia wants to use crypto as a solution for international payments.
In parallel, Russian government institutions will have to work to expand the regulatory framework for digital financial assets to include decentralized cryptocurrencies. The central bank of Russia has been strongly opposed to the legalization of crypto as a means of payment. They fear that people will use crypto will cause money to leave the country. Therefore, they are considering and will provide more detailed information about their law.
Not only Russia, the big collapse of FTX will also promote more countries, especially the United States, which will need to make laws soon to manage the market. The US state of Alaska will have licensing regulations for companies dealing in cryptocurrencies to have a license to operate in their state.
Coinbase shares its thoughts and looks back on an eventful year for the crypto market. They also share the hope that next year will be the beginning of a new foundation for the growth of the crypto market.
Other information:
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A year-end report from Accenture has revealed that consumers are still holding onto cryptocurrency — and for the long haul. According to Accenture’s Global Consumer Payments 2022 report, 1 in 5 consumers surveyed owns cryptocurrency. For crypto holders, 28% said their choice to get into crypto is due to a long-term investment. This is followed by 22% of consumers saying that their choice to enter crypto is “curiosity” about the market.
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Although the ongoing SEC lawsuit leads to uncertainty about XRP’s outlook, whales are likely to bet on the asset in the long run. As of December 21, XRP whale and shark addresses holding between 1 million and 10 million tokens increased to 1,617 in the last month of 2022. Notably, the XRP holdings of whales held at 7.23%, Santiment data.
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A $5 million Ankr protocol hack on December 1 was investigated and reported by this project. The former employee carried out a “supply chain attack” by including malicious code in a package of future updates to the group’s internal software. Once the software was updated, the malware created a security hole that allowed attackers to steal the team’s deployment key from the company’s servers.
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