Author: BTCLFGTEAM
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Alameda wallets sell multiple tokens for Bitcoin
- Alameda Research addresses sent millions worth of tokens to decentralised exchanges and crypto mixers on Wednesday.
- According to on-chain data, the tokens were swapped into USDT before being converted into Bitcoin.
- The Alameda wallets sprung into life a few days after FTX co-founder Sam Bankman-Fried was released on a $250 million bail.
Crypto wallets linked to Alameda Research, the quant trading arm of collapsed cryptocurrency exchange FTX, were massively active on Wednesday, on-chain data shows.
The Alameda addresses, as data shared online showed, actively sold several small cap cryptocurrencies, swapping these for Bitcoin and in some cases Ethereum.
Alameda sells millions worth of tokens
According to details shared on Twitter by Martin Lee, a data journalist at blockchain analytics platform Nansen, there were multiple odd transactions that seemed to swap tokens in Alameda wallets for Ethereum and Tether stablecoin USDT.
The funds were then sent to new wallets via decentralised exchanges (DEXs), including ChangeNow and FixedFloat.
Elsewhere, on-chain data shared by blockchain research firm Arkham Intelligence pointed to Alameda wallets offloading over $1.7 million in various tokens.
In total, Alameda-related wallets have mixed:
270.5Eth through ChangeNOW (~$325k)
800k USDT through Fixedfloat
200k through Curve SynthSwap (to native BTC)
200k through Airswap
200k through other crypto-mixing servicesreaching a total of $1.7M that has been taken.
— Arkham | Crypto Intelligence (@ArkhamIntel) December 28, 2022
According to the platform, the sales happened on the open market – a scenario that likely was behind the sharp drop in prices for several tokens. The Ethereum-based cryptocurrencies the wallets sold include Ether (ETH), Curve (CRV), USD Coin (USDC), Dai (DAI), and convex (CVX).
The tokens were sent to two wallets, swapped for USDT and then converted into BTC, blockchain sleuth ZachXBT tweeted on Wednesday.
The Alameda wallets came alive after weeks of dormancy, with these transactions intensifying as former FTX CEO Sam Bankman-Fried settled at home following released from jail on a $250 million bail. The sale of multiple tokens also coincided with a sharp price decline for Solana (SOL).
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Bitcoin holds $16K as markets edged towards 2022 close
- Bitcoin was changing hands near $16,600 on Wednesday, about 1% down in the past 24 hours.
- The cryptocurrency is heading for its worst yearly returns since 2018.
- Stocks have also hit a brutal patch in 2022, with major US indexes headed for their worst annual returns since 2008.
Bitcoin remained uncharacteristically uneventful on Wednesday, trading around $16,600 as investors weighed an end to a brutal 2022.
The benchmark cryptocurrency was just in the red during early afternoon trading (2:10 pm ET) as Wall Street also turned negative amid fading optimism over China’s reopening.
Markets to end 2022 lower
In crypto, Bitcoin volatility has been at its 2022 low this week, with the surge towards $17,000 cooling off to leave the cryptocurrency 67% down in the past year.
In fact, 2022 is shaping as the year with the second-worst returns for BTC since 2010. The digital gold’s performance during this markedly bear year has the asset on track for a worst return since the 73% drawdown in 2018.
In the 2014 bear market, Bitcoin price fell 58%, with other years with lower returns being +35% in 2015 and +66% in 2021 – indeed Bitcoin is more than 75% down since its all-time high in 2021.
As Bitcoin struggles to hold onto gains above $16k, the picture across the stock market is similar for the major US indexes. The S&P 500 is down 4.1% this month and over 20% year-to-date, while the Dow and the Nasdaq are -2.5% and -7.1% over the past 30 days respectively.
The historically bullish season for equities has been largely negative, with ongoing investor jitters around inflation and rate hikes, and the overall outlook for the global economy, adding to the downward pressure that has persisted for most of the year.
As such, while Bitcoin is set to see its worst yearly performance since 2018, US stocks are poised for their worst annual returns since 2008.
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MicroStrategy buys another $56.4 million worth of Bitcoin
- MicroStrategy reportedly bought approximately 2,500 BTC between 1 November and 24 December, 2022.
- The company now holds 132,500 BTC acquired for approximately $4.03 billion.
- MicroStrategy did however sell 704 BTC for $11.8 million on 22 December for what it termed as tax benefits.
MicroStrategy, a publicly traded company that’s the world’s largest corporate holder of Bitcoin, has reported buying more of the flagship cryptocurrency even as the market hit turbulence beginning early November.
As per the filing submitted on 28 December to the US Securities and Exchange Commission (SEC), MicroStrategy says it purchased an additional 2,500 bitcoins between 1 November and 24 December, 2022.
Altogether, the software analytics and business intelligence firm purchased Bitcoin worth approximately $56.4 million in nearly two months and $4.03 billion in total.
MicroStrategy now holds 132, 500 bitcoins
As crypto navigated the turmoil caused by FTX’s collapse that had crypto price tapping new multi-year lows, MicroStrategy saw an opportunity to buy Bitcoin. In short, the company added 2,395 bitcoins worth $42.8 million to its holdings between 1 November and 21 December, 2022.
The total BTC acquisition in this period cost the firm $42.8 million at an average purchase price of $17,871 per coin.
On 22 December, 2022, MicroStrategy sold 704 bitcoins for $11.8 million. According to the company, the sale was at an average price of $16,776 per coin. Although the sale was at a loss, the company plans to offset the capital losses against capital gains made earlier.
Despite the BTC sale, MicroStrategy went to the market again on 24 December 2022. It bought another 810 bitcoins at an average price of $16,845 and for a total outlay of $13.6 million. By 27 December 2022, the company had added 2,500 bitcoins at a total cost of $56.4 million.
As of this report, MicroStrategy had increased its Bitcoin holdings from 130,000 BTC at the end of October to 132,500 bitcoins by 27 December, 2022.
The recent purchases means MicroStrategy has spent $4.03 billion on acquiring BTC since its first purchase in 2020. The coins’ average purchase price currently stands at $30,397 per bitcoin.
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Which is a better buy in 2023?
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Bitcoin price outperformed Tesla in 2022.
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The two assets faced numerous challenges during the year.
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Bitcoin seems like a better investment in 2023.
Bitcoin price has had a terrible performance in 2022. It has crashed by 64% this year, making it one of its worst year on record. Tesla is doing much worse. Down by 74% in 2022, the company is having its worst year and quarter ever. Bitcoin’s market cap has crashed to about $320 billion while Tesla has moved from over $1 trillion to about $344 billion.
Bitcoin vs Tesla
Tesla and Bitcoin are two significantly different financial assets. Bitcoin is a cryptocurrency that wants to replace fiat currencies while Tesla is an automotive disruptor that wants to end internal combustion engines (ICE).
Yet the two assets have a lot of similarities. They are both disruptors in their respective industries and have a lot of fans internationally. Elon Musk loves the two assets.
Further, they are both emblematic of what happens when interest rates are left low for so long. After the Global Financial Crisis (GFC), central banks, led by the Federal Reserve, embraced an easy-money policy in a bid to support the economy. But rates remained so low for so long, leading to an era of irrational exuberance, as we wrote here.
Another similarity between Bitcoin and Tesla is that they are both facing significant competition. There are now over 20,000 cryptocurrencies seeking to dethrone BTC. Similarly, the number of EV startups is growing remarkably, with most traditional EV companies shifting to the EV model.
Why BTC and Tesla collapsed
Bitcoin price collapsed because of high-interest rates and the challenges in the crypto industry. The biggest scandals in the industry were the collapse of Terra, which helped fuel the bankruptcy of Voyager Digital, FTX, and Celsius.
Tesla, on the other hand, is facing serious competition while its CEO has been disrupted by his acquisition of Twitter. Analysts believe that his divided attention has played a significant role in the collapse of his net worth by more than $120 billion.
Further, Tesla is facing significant competition while demand for its cars has declined significantly in the past few months. Soaring inflation has made car sales drop.
Better buy between TSLA and BTC in 2023
So, which is a better buy between Tesla and Bitcoin in 2023? As the economy faces a triple whammy of high-interest rates, slow growth, and elevated inflation, the two will likely struggle in 2023. However, because of valuation metrics and market share, I think Bitcoin is a better investment than Tesla.
As Tesla moves from a growth company to a value stock, it will need to be priced much lower. For one, companies like General Motors and Ford are valued at under $50 billion. Bitcoin, on the other hand, has proven to be a market leader in its industry despite facing significant competition.
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