Overview
- Bitcoin On-Chain Metrics reveal exciting developments.
- Markets: Are the buyers exhausted?
- Interlay releases Bitcoin-backed stablecoin
- Emerging details in the Celsius debacle.
Good morning Banter Fam,
Coinage released the Do Kwon interview today.
After months of silence, the Luna CEO unleashed some interesting remarks. What did he have to say? Did the embattled CEO take the blame for the Terra events? Find out below in Banter’s Take.
On another note, Glassnode released its weekly Insight newsletter, which reveals some exciting developments in bitcoin on-chain metrics.
Feel free to read the full report.
On-Chain metrics suggest significant accumulation by “smart money.”
The Glassnode report was one of the more interesting ones in the previous weeks as it
focused on the significant transfer of wealth after the widespread capitulation and opposite accumulation.
The report began by showcasing the Bitcoin: Percent of Supply Last Active 1+ Years Ago, which sits at all-time highs of 65.5%. The chart highlights when HODLing becomes the “primary dynamic,” a trait often seen during bear markets, aka accumulation cycles.
The Bitcoin: HODL Waves chart shows the expansion of coins in the 1-2 year age band, which shows the cohort that refuses to sell despite the fall in price.
Short-term holders in a downtrend market capitulated aggressively since levels last seen in July 2020 during the overall market meltdown. (Spikes with red circles).
Conclusion:
- True hodlers possess a large percentage of BTC, a cohort unlikely to sell at these levels.
- There’s been a significant transfer of wealth into “smart money” hands.
- There’s a strong suggestion of increased hodling behavior and accumulation with a substantial increase in short-term holders (wealth transfer).
- The question remains, can the abundance of new short-term holders turn into long-term holders?
Market update 🌍
DXY/USD 1D
The US stock market continued to steam forward after the Nasdaq and S&P 500 gapped resistance levels last week. Since July 14th, Nasdaq and S&P 500 climbed 26% and 13.3%, respectively. But trouble may be brewing in the form of the US dollar index (DXY). DXY, which previously broke below its uptrend support (green), has again jumped above the level, showing that the flight to safety may not be over.
High-resolution chart
BTC/USD 1D
The price action of DXY translated into a halt to the run in crypto. Bitcoin (BTC) continues to battle the 24K resistance. The large wicks in price action the previous three days show continued signs of sellers gaining the upper hand. If the selling continues, keep an eye on the supportive uptrend (green). A break at this level could showcase further downside. BTC completed the daily candle down -0.87% to $24,904.
High-resolution chart
| US markets close | Gain/Loss |
| S&P 500 | +0.40% |
| Nasdaq | +0.80% |
| Dow | -1.05% |
| VIX | +2.15% |
Notable Gainers (24h):
| Protocol (Coin) | Price ($) | Gain (%) |
| Chiliz (CHZ) | 0.19 | +5.4 |
| STEPN (GMT) | 1.05 | +4.7 |
| LEO Token (LEO) | 5.40 | +4.6 |
| DAO Maker (DAO) | 2.15 | +10.6 |
| Ergo (ERG) | 3.34 | +8.2 |
| IoTeX (IOTX) | 0.040 | +8.1 |
| Optimism (OP) | 1.54 | +5.5 |
| Bitcoin Fear and Greed Index | 44 Fear |
| “Crypto” Google Trends 90d | 38 |
| “Bitcoin” Google Trends 90d | 27 |
Newswatch 📰
Bitcoin-backed stablecoin. Crypto firm Interlay has released a wrapped BTC asset named interBitcoin (iBTC) on the Acala and Moonbeam Polkadot parachains. The firm additionally plans to launch the product on Ethereum, Solana, Cosmos, and Avalanche. InterBTC is fully collateralized, insured, and 100% redeemable with Bitcoin.
Celsius’ (unbalanced) balance sheet. A recently released bankruptcy document signed by Celsius CEO Alex Mashinsky shows the firm held $4.3 billion in assets versus $5.5 billion in liabilities, a $1.2 deficit. But a report released on Sunday shows the actual debt stands at $2.85 billion. According to the report, Celsius would exhaust its cash holding to run the company by October 2022.
Coin Center to challenge Tornado Cash sanctions. The policy advocacy group, Coin Center, noted its intention to challenge the sanctions by claiming the OFAC overstepped its legal authority after naming Tornado Cash and various wallets in a list of Specially Designated Nationals. The report said, “By treating autonomous code as a “person” OFAC exceeds its statutory authority.”
News tidbits:
- The largest investment bank in Latin America, BTG Pactual, launches a crypto exchange.
- a16z is investing $350m into Flow.
- StarkNet Roundup #29.
- Acala passes referendum to burn 1.3b erronously printed aUSD.
NFT & metaverse update 🐵
- Kucoin Labs announces incubation program with Univers network for further Metaverse exploration.
Banter’s take
Do Kwon’s comments in his interview with Coinage’s Zach seemed limited by legality issues, and partially rehearsed too. Some may even say unconvincing. Ultimately, the footage failed to reveal any new insights. Although, Do took full responsibility for leaving an inherent weakness in the project that led to its eventual collapse after he stated, “I, and I alone, am responsible for any weaknesses that could have been presented for a short seller to start to take profit.”
Do plans to keep his daughter’s name (Luna) despite the events, claiming “it’s an important part of the family’s history”. Courageous, to say the least, and a testament to his continued conviction.
Feel free to watch the full interview.
Gabri
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Disclaimer
Good Morning crypto (issued by Crypto Banter) is a newsletter for entertainment purposes only.
All opinions expressed by the publisher, writers, and chartists should not be construed as financial advice and do not necessarily reflect the views of Crypto Banter. The publisher, writers, and chartists may hold positions in the tokens and assets discussed. Readers are encouraged to do their own research.
