Category: NEWS
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Bitcoin is among top 10 assets per investor interest in 2022
- Bitcoin sits 8th on Yahoo Finance’s list of top quotes as measured by total page views in 2022.
- According to the platform, BTC/USD has accumulated more than 157 million quote views, with Tesla topping the list.
- Ethereum ranks 25th while the Coinbase (COIN) stock currently sits in 30th spot.
Cryptocurrencies have remained deep within an unforgiving crypto winter for all of 2022. That’s it.
And December is not offering much relief to traders so far, not with heavy duty contagion amid a spike in the number of crypto projects falling into distress.
It’s thus surprising to say that interest in Bitcoin, the world’s largest cryptocurrency by market cap, soared throughout the year. But then it has.
Bitcoin among top 10 assets per investor interest
The price of Bitcoin fell below $16,000 after FTX’s implosion, but as CoinJournal recently reported, large investors appear to have used that as an opportunity to buy more. That is interest that has reflected throughout the year as prices nosedived from last year’s peak above $69,000.
According to an in-house metric Yahoo Finance uses to measure investor interest across the markets, BTC has seen a laser-like focus from investors even as prices plunged to lows last seen in 2020.
A report the company published on Thursday showed that the BTC/USD quote has so far accumulated over 157 million views in 2022. Ranked alongside other top assets, the flagship cryptocurrency falls within the top 10. Indeed, as of Thursday, bitcoin ranked 8th on the platform’s list of top 10 trending tickers.
Looking at the list, Tesla Inc. (TSLA) stock quote ranks first with more than 398 million views, followed by the three major US indices (the Dow Jones Industrial Average, the S&P 500 and Nasdaq). Tech giant Apple Inc. (AAPL) sits 5th with more than 249 million page views while Amazon (AMZN) comes next with 199 million views so far.
Ethereum (ETH) is 25th on the list in terms of investor interest as measured by 63.8 million page views so far. Elsewhere, Coinbase (COIN) has also been on top of investors’ list of interesting assets, with the crypto stock ranked 30th after more than 57 million quote views.
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Most of the Bitcoin supply is now loss-making
Key Takeaways
- Bitcoin was the best performing asset class between 2011 and 2021, but the year 2022 has brought nothing but pain
- After rising 14X from its pandemic low in March 2020 to its all-time high in November 2021 of $68,739, Bitcoin has struggled amid risk-off environment
- Pullback has been so severe that majority of the supply is in loss-making position
What a ride it has been for Bitcoin.
But as we close the chapter that is 2022, the party has turned into a nightmare for most. Literally, most. Because the majority of the Bitcoin supply, which as I write this is 19.24 million bitcoins, is in a loss-making position.
I have written before about this trend, and as the chart above shows, we have seen greater than 50% of the supply in a loss-making position before. But after a respite, the market has again careened downward after a certain Mr Bankman-Fried was exposed.
But it is quite the sobering statistic when considering that in the decade between 2011 and 2021, Bitcoin was the best performing asset class in the world. Exploding from fractions of a penny to near $69,000 last year, it made a lot of people very, very rich.
But for anybody who bought in during the pandemic, the story is likely very different. In extending out the above graph back over the course of the decade, the ups and downs are evident.
Macro environment unprecedented for Bitcoin
The one thing that is glaring is that for the first time in Bitcoin’s history, it is now experiencing a bear market in the wider economy.
Launched in 2009, Bitcoin had, until 2022, enjoyed one of the longest and most explosive bull markets in financial history. Risk assets across the board went sky-high, with the S&P 500 printing a 7X return from its low point amid the Great Financial Crash to its level at the start of 2022.
“The scandals and idiosyncratic risk in the cryptocurrency space have been many this year. Nonetheless, despite the torrid happenings in the crypto industry which have undoubtedly made things a lot worse, Bitcoin has plummeted due to the wider macro environment, which has made a mockery of any thought that Bitcoin is not a high-risk asset”, said Max Coupland, director of CoinJournal, when assessing Bitcoin’s 2022 price action.
On this note, when plotting Bitcoin’s price level against the S&P 500, all looks healthy. Only thing is, I cut the chart off at the start of 2022.
The below chart then does the same – plots the S&P 500 against Bitcoin. Only this time, it focuses on 2022, showing that both the stock market and Bitcoin have plunged.
“Bitcoin is uncorrelated” narrative killed
Of course, the narrative that Bitcoin is uncorrelated is completely dead. Not only that, but the misguided thinking that led some to conclude that Bitcoin is an inflation hedge has been proven foolish.
There is no other way to put it – Bitcoin has traded like a high risk asset.
In fact, it has traded like such a high risk asset that not only was it the best performing asset of the decade between 2011 and 2021, when markets surged up and all these risk assets printed meteoric gains, but now that we are experiencing the flipside, it has performed worse than nearly anything.
It has pulled back so severely that those gains which saw it claim that best performing asset title are now not enough to prevent the fact that most of the supply is held by investors in loss making positions.
If you use our data, then we would appreciate a link back to https://coinjournal.net. Crediting our work with a link helps us to keep providing you with data analysis research.
Research Methodology
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On-chain data sourced via Glassnode
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S&P 500 and Bitcoin price data sourced via Yahoo Finance
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Bitcoin the “best performing asset class of 2011-2021” sourced via Yahoo Finance
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Is PancakeSwap (CAKE/USD) bullish market over?
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PancakeSwap was bullish up to November, doubling in price
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PancakeSwap token has been weighed by the risk contingencies of the FTX sage
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The cryptocurrency remains on a downtrend and risks a lower low
It seems that PancakeSwap (CAKE/USD) will have to end 2022 on a low note. CAKE was among a handful of cryptocurrencies that looked strong in the face of a bear market. However, it couldn’t last beyond November. The aftermath of the FTX collapse has taken a toll on the cryptocurrency. Why has this so yet tokens of decentralised exchange or DEX surged post-FTX saga?
The decline in CAKE happens potentially due to its connection with Binance. The cryptocurrency is based on the Binance Smart Chain. Thus, the confidence crisis facing centralised exchanges, including Binance, may have infiltrated PancakeSwap. It does not necessarily mean that is the case, though, as the bear market is also ravaging crypto markets.
With CAKE touching a crucial resistance at $5.0 in early November, investors could have exited positions. That, of course, was inspired by the FTX collapse that sent most crypto tokens tumbling. Investors would not have risked the profits they had made since CAKE had already doubled in value since the June lows. Based on these, CAKE’s bullish market is over, at least in the meantime.
CAKE’s technical outlook is bearish as price retests resistance
A technical outlook shows CAKE retesting a resistance at $3.5. The price has stalled since touching the level, suggesting a possibility of a correction to the downside.
The MACD indicator is very bearish for cryptocurrency. The RSI reading has slightly improved since touching oversold conditions as the CAKE price fell to $3.1. The reading remains below the midpoint, indicating that bears are in control.
What is the likely next price of CAKE?
CAKE price will stay bearish unless bulls recover above the $3.5 level. The next potential price level for the cryptocurrency lies at $2.8 and $2.6. Investors should keep off until the bearish movement subsides and should buy CAKE on a bullish reversal confirmation.
Where to buy CAKE
Binance
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
Swapzone
Swapzone is a crypto exchange aggregator that operates as a gateway between the cryptocurrency community and exchange services. Swapzone aims to provide a convenient interface, safe user flow, and crystal-clear data for users to find the best exchange rates among the whole cryptocurrency market.
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Tron token making slow but sure gains amid plan to empower “elite” startups
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Tron token rose by 1.72% on Wednesday.
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TRX gains come amid news that Tron was supporting startup blockchains.
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TRX could continue to surge up to a descending trendline.
Tron (TRX/USD) is emerging from the ruins of a bearish breakout that sent the token spiralling to $0.045. The cryptocurrency recorded intraday gains of 1.72% and traded at $0.055. The token has printed a short-term bullish trendline that could now interest buyers.
The slight recoveries in TRX come even as the Tron DAO continues to power startup blockchains. According to the latest announcement, Tron DAO Ventures, or TDV, will support elite startups. TDV will support projects within the Tron ecosystem and beyond. Tron says this is part of the DAO’s objective to grow decentralisation. TDV will also support outstanding projects that synergistically bridge with the Tron ecosystem.
The latest cryptocurrency news is positive for TRX, looking at the intraday price recovery. It is, nonetheless, less important in the long-term recovery of the cryptocurrency unless we escape the bear market. In the technical analysis below, we show potential levels to watch.
TRX price outlook and analysis
A clear breakout of TRX happened at $0.06, and the price crashed to $0.045. The recent recoveries have, however, been encouraging. Bulls would aim for a higher price, although this is likely at the descending trendline.
The MACD indicator is also giving some hope. The indicator is crossing from the bear zone and currently lies at the neutral level. This is the clearest bullish signal, but we need to confirm it by the price movement. That’s especially because the momentum is not very strong from the indicator.
What to do with TRX?
Although we are still in a bear market, TRX buyers can aim for a price that coincides with the descending trendline. Still, buyers should watch over price as the bullish strength is still mild.
If bears counter the upside, TRX price could crash back to the $0.045 support zone. The level around $0.052 could also offer support on the downside.
Where to buy TRX
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Binance
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
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The Sandbox (SAND/USD) falls further, but you would want to buy based on this Santiment data
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The Sandbox token trades at the lowest level in the year
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Santiment data indicates SAND is at “opportunity zones”
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We expect the Sandbox token price to sink further until the bear market subsides
It continues to be lonely in the metaverse. With few fundamentals and developments coming up, investors are still dumping the metaverse-related tokens. In the past week, the token of the popular metaverse platform, The Sandbox (SAND/USD), has lost almost a quarter of its value. Take into account that this cryptocurrency was already trading at exceedingly depressed levels. SAND now trades at $0.44, although Santiment data gave an “opportunity” signal. Would you take it?
Santiment is a crypto analytics firm known for data feeds and updates. According to the firm, tokens of metaverse platforms, including SAND, are trading at “opportunity zones.” The analytics firm uses the market-value-to-realised value or MVRV to make the judgement. MVRV relates an asset market cap and compares it with the realised capitalization. The resulting ratio is used to identify overbought and oversold conditions.
Using MVRV, Santiment says the Sandbox token, in addition to Decentraland’s MANA, is at historical pain points. These are underbought and semi-underbought zones where big bounces occur. A technical outlook shows RSI flushing overbought conditions on a clear downtrend.
SAND on a downtrend as it touches a new low in the year
From the technical outlook, SAND trades at the lowest level in the year. The bottom price was last reached in July 2021. The cryptocurrency is currently oversold, with the RSI reading now at 30. SAND maintains a clear downtrend.
Is a rebound likely for SAND?
It could be too soon to think of buying SAND. Despite the Santiment data and RSI pointing to underbought and oversold conditions, respectively, the price is bearish.
Again, the market sentiment remains bearish. Since SAND trades alongside the broader market, it could be too early to make a bull call. SAND could find support next at $0.36.
Where to buy SAND
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
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