Sebastian Sinclair


<p>Bitcoin bled 4.7% to dip below $26,000 over the past 24 hours, immediately following revelations the SEC would be delaying several filings for a US spot ETF until October.</p>



<p>Blaming insufficient time to evaluate, the SEC has stayed applications from <a href="https://blockworks.co/news/sec-delay-decision-bitcoin-etf-blackrock">Blackrock</a>, WisdomTree, Fidelity, Bitwise, VanEck, <a href="https://blockworks.co/news/sec-delay-bitcoin-etf-decision-wisdomtree-valkyrie">Valkyrie and Invesco</a>, Blockworks reported.</p>



<p>The market shuddered Thursday, sending bitcoin (<a href="https://blockworks.co/price/btc">BTC</a>) sharply lower for the second time in two weeks. The asset had climbed significantly Tuesday, sparked by a sharp drop in US bond yields alongside a <a href="https://blockworks.co/news/grayscale-sec-decision-bitcoin-etf">small win</a> in Grayscale’s fight against the SEC.</p>



<p>That move had marked bitcoin’s single biggest daily rally in five and a half months. Now, it appears those buying into the ETF hype are back on the defensive.</p>



<p>Rich Rosenblum, co-founder and president of GSR told Blockworks this week represented a game of “ETF approval probability ping pong.”&nbsp;</p>



<p>“When an ETF gets approved, it’s a game changer for the industry, so it’s no surprise people are buying the news,” he said “But in the short term it also opens up a lot of liquidity to exit, that would otherwise be locked up in GBTC.”</p>



<p>Total long liquidations for bitcoin’s move down, while mild in comparison to the mid-August rout where more than <a href="https://blockworks.co/news/price-dip-long-liquidation">$855 million</a> was wiped in a single day, still amounted to over $100 million, according to <a href="https://www.coinglass.com/LiquidationData">Coinglass</a>.</p>



<p>The majority of those liquidations appear to have occurred over a 12-hour period, primarily across OKX at $45 million and Binance with a total of $37 million as of 4:00 am ET, data shows.</p>



<p>The price reversal for BTC is a function of the still negative sentiment, a hangover from 2022, exacerbated by a “stubborn” SEC, Mark Connors 3IQ’s head of research told Blockworks.</p>



<p>“This is a &#8216;show me&#8217; market. And in the case of US spot BTC ETF, it needs finality,” he said. “I don’t think it is in reaction to changes in opinion or failed expectations on awarding a blanket ETF approval.”</p>



<p>Instead, the research head pointed to several positive upcoming factors including the asset’s ability to deliver outsized gains compared to its potential for loss, dubbed “positive skew.”</p>



<p>A looming halving event — just shy of eight months away — bitcoin’s energy efficiency and rising fees showcasing activity were all contributing to <a href="https://blockworks.co/news/bitcoin-hodlers-market-volatility">positive sentiment</a>, Connors said. As a result, price action has remained flat on the week.</p>



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Bitcoin drops 5% on ETF decision delay to close out August


<p>A Bahamas securities regulator on Thursday froze the assets of the local subsidiary of beleaguered cryptocurrency exchange FTX.&nbsp;</p>



<p>The Securities Commission of The Bahamas also took the first step into forcing the local subsidiary, FTX Digital Markets (FDM) into what’s known as provisional liquidation — where assets will be safeguarded for the time being, as opposed to distributing the company’s assets to creditors.&nbsp;</p>



<p>FDM’s registration — which permits the business unit to operate in The Bahamas — has been canceled by the regulator in a bid to “proactively” deal with the fast-developing situation, according to a <a href="https://www.scb.gov.bs/wp-content/uploads/2022/11/Securities-Commission-Statement-on-FTX-101122-Final.pdf" target="_blank" rel="noreferrer noopener">statement</a> from the regulator.&nbsp;</p>



<p>FDM is the Bahamian subsidiary of parent FTX Trading Ltd., owner and operator of FTX writ-large. FTX and its subsidiaries do not account for the US arm of CEO Sam Bankman-Fried&#8217;s businesses, FTX.US. </p>



<p>The move follows reporting demonstrating that FTX and sister trading firm Alameda Research had been commingling assets — namely the exchange’s native FTT token — to prop up Alameda’s balance sheet. Industry participants and regulators since have been parsing whether FTX has been improperly trading customer funds via Alameda.&nbsp;</p>



<p>“The commission is aware of public statements suggesting that clients’ assets were mishandled, mismanaged and/or transferred to Alameda Research,” the statement said.&nbsp;</p>



<p>Based on the commission’s preliminary findings, it appears the arrangement, without client consent, could be potentially illegal, the watchdog said.&nbsp; As such, the regulator appointed <a href="https://www.lennoxpaton.com/people/brian-simms-qc/" target="_blank" rel="noreferrer noopener">Brian Simms</a>, senior partner and head of litigation and insolvency at law firm LennoxPaton, to oversee its inquiry.&nbsp;</p>



<p>FDM’s executives, including Bankman-Fried, have been stripped of their operational powers, while assets belonging to both FTX and its clients are not allowed to be moved without Simms’ prior approval.&nbsp;</p>



<p>“The commission determined that the prudent course of action was to put FDM into provisional liquidation to preserve assets and stabilize the company,” the statement said. “The commission is committed to working with the provisional liquidator to endeavor to obtain the best possible outcome for the customers and other stakeholders of FTX.”</p>


Bahamas Regulator Freezes FTX Assets

David Canellis

<div id="highlights-block_62bc317680c8a" class="highlights">
        <ul>
                <li>Three Arrows Capital must now formally liquidate assets tied to its British Virgin Islands company, according to Sky News</li>
                <li>It&#8217;s not immediately clear what assets Three Arrows Capital still has or what this means for its creditors</li>
            </ul>
    
</div>



<p>Three Arrows Capital (3AC), the crippled cryptocurrency hedge fund firm, has been ordered into liquidation by a British Virgin Islands (BVI) court, reports <a href="https://news.sky.com/story/crypto-hedge-fund-three-arrows-capital-plunges-into-liquidation-12642402">Sky News</a> citing a source familiar with the matter.</p>



<p>A BVI court reportedly ordered 3AC to liquidate its assets on Monday. Partners from global consulting firm Teneo Restructuring were said to be managing 3AC’s insolvency. 3AC is headquartered in Singapore but incorporated in BVI.</p>



<p>In these circumstances, restructuring units such as Teneo mainly focus on protecting the assets of the liquidated company, as well as determining who its creditors are.</p>



<p>Two Teneo operatives have been appointed to lead 3AC&#8217;s liquidation process, Blockworks has learned. Teneo will now set up a website via which creditors can make claims against 3AC, according to one source familiar with the matter.</p>



<p>The firm was founded in 2012 by cryptocurrency investors Su Zhu and Kyle Davies. 3AC operated crypto hedge funds as well as serving as venture capitalists across the digital asset space.</p>



<p>3AC has been dogged by insolvency rumors over the past few weeks, including that it suffered upwards of $400 million in liquidations as cryptocurrency markets collapsed between May and June.</p>



<p>Blockchain project Kyber Network, in which 3AC had invested, later <a href="https://thedefiant.io/kyber-ghosted-three-arrows/" target="_blank" rel="noreferrer noopener">detailed</a> the firm&#8217;s treasury management services, which involved entrusting a portion of its capital with 3AC for potential profit. Those funds are still unaccounted for.</p>



<p>Blockworks <a href="https://cms.blockworks.co/three-arrows-backed-protocol-says-major-chunk-of-treasury-is-unaccounted-for/" target="_blank" rel="noreferrer noopener">reported</a> similar instances affecting decentralized protocols across the cryptocurrency sector. 3AC offered its backed startups 8% annualized yield on treasury assets it managed.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">We are in the process of communicating with relevant parties and fully committed to working this out</p>&mdash; Zhu Su 🔺 (@zhusu) <a href="https://twitter.com/zhusu/status/1536876343815983104?ref_src=twsrc%5Etfw">June 15, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>Around the same time, the chief executive of trading outfit 8 Blocks Capital alleged 3AC had misappropriated $1 million of its funds.</p>



<p>But the full extent of 3AC&#8217;s financial strife was confirmed last week when digital asset manager Voyager Digital revealed 3AC had failed to make payments on loans made up of $350 million in USDC and 15,250 BTC ($306 million).</p>



<p>Voyager Digital <a href="https://cms.blockworks.co/voyager-digital-issues-3ac-notice-of-default-on-around-665-million-loan/" target="_blank" rel="noreferrer noopener">issued</a> 3AC a notice of default on Monday &#8212; the same day a BVI court ordered the firm into liquidation.</p>



<p><em>Additional reporting by Sebastian Sinclair</em>.<em> </em></p>



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Three Arrows Capital Ordered Into Liquidation by BVI Court: Report

Macauley Peterson

<div id="highlights-block_62afc95119535" class="highlights">
        <ul>
                <li>Solend Labs ponders emergency powers, in challenge for decentralized governance ideal</li>
                <li>Should the price of SOL have dropped below $22.30 before a vote was made, chaos would have ensued Solend Labs said in a post</li>
            </ul>
    
</div>



<p>Users of the Solana-based lending and borrowing protocol Solend granted emergency power to the platform&#8217;s steward in order to mitigate liquidation risks presented by Solend&#8217;s biggest bagholder.</p>



<p>Those powers, gifted via the Solend-based decentralized autonomous organization&#8217;s (DAO) first <a href="https://realms.today/dao/7sf3tcWm58vhtkJMwuw2P3T6UBX7UE5VKxPMnXJUZ1Hn/proposal/HuaL6cDtuNtfnJgvwMnYiZDHVCoLAuDtVFgJD8kYChJ4" target="_blank" rel="noreferrer noopener">governance proposal</a>, allow Solend Labs to take over the whale&#8217;s account in order to execute an over-the-counter trade should the price of Solana&#8217;s native token SOL drop below $22.30.</p>



<p>But, after public outcry, a <a href="https://realms.today/dao/7sf3tcWm58vhtkJMwuw2P3T6UBX7UE5VKxPMnXJUZ1Hn/proposal/3geE5P3D7VJRaNNDVfZciGsXgwGiao1hSNpRM6jWNa5A" target="_blank" rel="noreferrer noopener">second signalling proposal</a> sought to walk back the first.</p>



<p>The first proposal gave developers a green light to implement special margin requirements for large whales borrowing more than 20% from the protocol&#8217;s primary pool, with a 35% liquidation threshold now in place.</p>



<p>More than 1.15 million votes were cast in favor of authorizing the special powers or roughly 97.5%, versus 30,101 against (2.5%). However, a single account, representing 1% of the total users participating, cast more than 1 million votes in the affirmative, Solana-based Realms <a href="https://realms.today/dao/7sf3tcWm58vhtkJMwuw2P3T6UBX7UE5VKxPMnXJUZ1Hn/proposal/HuaL6cDtuNtfnJgvwMnYiZDHVCoLAuDtVFgJD8kYChJ4/explore" target="_blank" rel="noreferrer noopener">data shows</a>, revealing a stark centralization in the decision-making process.</p>



<p>The whale <a href="https://solend.fi/dashboard?wallet=3oSE9CtGMQeAdtkm2U3ENhEpkFMfvrckJMA8QwVsuRbE" target="_blank" rel="noreferrer noopener">account</a> in question presents a systemic risk to the protocol, Solana&#8217;s network and its users, due to the account holding &#8220;an extremely large margin position&#8221; close to liquidation, Solend said in a <a href="https://blog.solend.fi/slnd1-mitigate-risk-from-whale-1504285ab4d2" target="_blank" rel="noreferrer noopener">post</a> ahead of the vote on Sunday. </p>



<p>After repeated attempts to contact the whale, Solend said it was put to a vote to take premptive action over the account. The move raises questions regarding the principles and spirit of decentralized finance, which aims to remove middlemen and empower financial self-sovereignty. </p>



<p>Roughly $108 million worth of USDC and USDT is being borrowed by the whale, against $170 million worth of SOL deposited as collateral in the protocol&#8217;s main pool. That represents roughly 88% of USDC borrows and 95% of SOL deposits for the lending platform.</p>



<p>Should the price of SOL drop below $22.30 the whale’s account could be liquidated for up to 20% of their borrowings, estimated to be worth $21 million, Solend said. SOL was last seen changing hands for around $32.60 after bouncing from a 24-hour low of $29, <a href="https://www.blockworksresearch.com/assets/sol/" target="_blank" rel="noreferrer noopener">Blockworks Research</a> data shows.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p><strong>&#8220;It&#8217;d be difficult for the market to absorb such an impact since liquidators generally market sell on DEXes,&#8221; Solend said in its post. &#8220;In the worst case, Solend could end up with bad debt. This could cause chaos, putting a strain on the Solana network.&#8221;</strong></p></blockquote>



<p>Following concerns about the potential risk, users have begun withdrawing assets en masse, forcing USDC and USDT utilization in the protocol&#8217;s primary pool to spike to 100%, Solend confirmed in its post. The result leaves remaining depositors unable to withdraw. What&#8217;s worse, any positions collateralized by deposits of the two stablecoins are unable to be liquidated.</p>



<p>&#8220;Letting a liquidation of this size to happen on-chain is extremely risky.&nbsp;DEX liquidity isn’t deep enough to handle a sale of this size and could cause cascading effects,&#8221; Solend said.</p>



<p>The governance move has roiled DeFi proponents, who see it as a tacit admission that not only Solend&#8217;s design choices failed, but the Solana Ventures-backed protocol is centralized — a DAO in name only.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Sqlana&#39;s Solend leverage platform just spun up a fake vote as cover to control a whale&#39;s account so that it wouldn&#39;t get liquidated &amp; crash the <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SOL</a> server again.<br><br>Solend is an official portfolio company of Solana.<br><br>Insider deals. Central servers.<br><br>This is the definition of CeFi. <a href="https://t.co/AZ5N3eJmaB">https://t.co/AZ5N3eJmaB</a></p>&mdash; Evan Van Ness 🦇🔊 (@evan_van_ness) <a href="https://twitter.com/evan_van_ness/status/1538610017573773318?ref_src=twsrc%5Etfw">June 19, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>It&#8217;s unclear what the next steps are following the second vaguely-worded proposal meant to placate critics of the first. The proposal, which was approved by a similarly overwhelming majority of SLND — the protocol&#8217;s governance token — ostensibly &#8220;invalidates&#8221; the first, and lengthens the duration of governance votes from a comically short six hours to a full day.</p>



<p>The team also pledges to &#8220;work on a new proposal that does not involve emergency powers to take over an account.&#8221;</p>



<p>The conundrum marks another headache for the budding Solana ecosystem, whose network has experienced <a href="https://cms.blockworks.co/solana-price-dips-after-another-network-outage/" target="_blank" rel="noreferrer noopener">several outages</a> this year, shaking faith in the stability and resiliency to maintain consistent uptime in the face of intense market activity.</p>



<p>Solana has a history of downtime caused specifically by on-chain liquidations, though this instance represents a 100 times greater impact to the network and ecosystem, Solend <a href="https://twitter.com/solendprotocol/status/1538553657158881280?s=20&amp;t=gL7a9q79nlz9kBdM8WbYaA" target="_blank" rel="noreferrer noopener">tweeted</a> Sunday. </p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p><strong>&#8220;It&#8217;s extremely risky for everyone involved.&#8221;</strong></p></blockquote>



<p>Fears of market contagion continue to plague the confidence and resolve of the crypto market which is still reeling from the aftereffects of Luna&#8217;s implosion in May and lender Celsius halting <a href="https://cms.blockworks.co/celsius-lending-platform-suspends-withdrawals-and-transfers/" target="_blank" rel="noreferrer noopener">withdrawals and transfers</a> a week ago.</p>



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Solana Lending Protocol Faces Governance Conundrum

<div id="highlights-block_62abc7a59ea65" class="highlights">
        <ul>
                <li>BlockFi said it was exercising &#8220;best business judgement&#8221; when it joined in other lenders to liquidate a &#8220;large client&#8221;</li>
                <li>Reports point to Three Arrows Capital as the unnamed client and follows the hedge fund firm&#8217;s rumoured $400 million liquidation</li>
            </ul>
    
</div>



<p>Crypto lender BlockFi confirmed Thursday it has liquidated a &#8220;large client&#8221; and acted &#8220;decisively&#8221; to mitigate risks in accordance with its contracts with specific counterparties.</p>



<p>While the lender has not explicitly named the client, it comes amid reports claiming crypto hedge fund and venture capital firm Three Arrows Capital (3AC) was the counterparty involved, according to the <a href="https://www.ft.com/content/126d8b02-f06a-4fd9-a57b-9f4ceab3de71" target="_blank" rel="noreferrer noopener">Financial Times</a>.</p>



<p>&#8220;BlockFi can confirm that we exercised our best business judgment recently with a large client that failed to meet its obligations on an overcollateralized margin loan,&#8221; BlockFi CEO Zac Prince <a href="https://twitter.com/BlockFiZac/status/1537499455007645696?s=20&amp;t=B0FtA-9rIjq6dflywxmRFA" target="_blank" rel="noreferrer noopener">tweeted</a> late Thursday. &#8220;We fully accelerated the loan and fully liquidated or hedged all the associated collateral.&#8221;</p>



<p>A shaken market continues to cause headaches for some of the industry&#8217;s household names including interest yield-earning platform Celsius, which moved to restrict user <a href="https://cms.blockworks.co/celsius-lending-platform-suspends-withdrawals-and-transfers/" target="_blank" rel="noreferrer noopener">withdrawals and transfers</a>, citing extreme market conditions. A liquidity crisis is staring down some crypto firms that are struggling to meet their obligations to lenders.</p>



<p>&#8220;Some investors have lost confidence and trust in crypto in general. People who are involved in [decentralized finance] fear more similar bank-run events, thus continuing to sell off and reduce leverage,&#8221; Youwei Yang, director of financial analytics at financial services firm StoneX, told Blockworks in an email. &#8220;Ripple effects or lingering causes resulting from <a href="https://cms.blockworks.co/tag/terra/" target="_blank" rel="noreferrer noopener">Terra&#8217;s crash</a> also continue.&#8221;</p>



<p>Client funds remain unaffected as BlockFi was one of the first to take action with the unnamed counterparty, Prince added in <a href="https://twitter.com/BlockFiZac/status/1537499456349798406" target="_blank" rel="noreferrer noopener">a follow-up tweet</a>. Blockworks attempted to contact BlockFi but did not receive a response by press time.</p>



<p>Embattled firm 3AC is rumored to be <a href="https://cms.blockworks.co/crypto-fund-three-arrows-capital-facing-potential-insolvency-report/" target="_blank" rel="noreferrer noopener">facing insolvency</a> following a $400 million liquidation by top-tier lenders. 3AC is said to have maintained limited contact with involved counterparties. Blockworks attempted to contact 3AC but also received no response.</p>



<p>The firm is reported to have been underwater from its involvement in the now-defunct Terra ecosystem and illiquid investment in staked ether (stETH) via the Lido Finance protocol, with some speculating 3AC dumped large amounts of stETH at a discount to finance its debts. While fully backed by ether in the Beacon Chain, stETH is not redeemable for ether on a 1:1 basis until withdrawals are enabled after blockchains&#8217; <a href="https://cms.blockworks.co/?s=The+Merge" target="_blank" rel="noreferrer noopener">Merge</a>. StETH is trading for around 0.93 ETH as of Friday at 5 am ET.</p>



<p>As the Dubai-based firm failed to meet obligations on its margin calls from borrowed collateral, 3AC attempted to cover its debts by selling other assets at a loss, leading to hundreds of millions in liquidations, <a href="https://www.theblock.co/linked/152092/after-facing-hundreds-of-millions-of-dollars-in-liquidations-three-arrows-capitals-future-is-uncertain" target="_blank" rel="noreferrer noopener">The Block</a>&nbsp;reported Wednesday.</p>



<p>Crypto yield generator <a href="https://cms.blockworks.co/finblox-imposes-withdrawal-limit-amid-3acs-uncertainty/" target="_blank" rel="noreferrer noopener">Finblox</a> became the latest firm entangled in 3AC&#8217;s troubles, imposing a $1,500 monthly withdrawal limit and pausing reward distribution on Thursday as a result of contagion risk.</p>



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BlockFi Says It Liquidated a ‘Large Client’ Amid 3AC’s Margin Calls

Sam Martin

<div id="highlights-block_617725d07bf3f" class="highlights">
        <ul>
                <li>Less accommodative Federal Reserve policy brings bearish price action to BTC</li>
                <li>Market participants are now pricing in a high chance of three to four rate hikes in 2022</li>
            </ul>
    
</div>



<p>The market is now pricing in a good chance of three or four rate hikes in 2022.</p>



<p>Yields on government bonds have been soaring higher as the market expects a less accommodative US Federal Reserve.</p>



<p>The US dollar has shown strength over the past few months, a headwind for digital assets.</p>



<h3 class="wp-block-heading"><strong>Latest in Macro:</strong></h3>



<ul><li>S&amp;P 500: 4,670, -0.14%</li><li>NASDAQ: 14,942, -0.05%</li><li>Gold: $1,801, +0.36%</li><li>WTI Crude Oil: $78.43, -0.60%</li><li>10-Year Treasury: 1.755%, -0.014%</li></ul>



<h3 class="wp-block-heading"><strong>Latest in Crypto:</strong></h3>



<ul><li>BTC: $41,737, -1.80%</li><li>ETH: $3,076, -3.80%</li><li>ETH/BTC: 0.0737, -1.98%</li><li>BTC.D: 40.91%, +1.36%</li></ul>



<h3 class="wp-block-heading">Tighter fiscal and monetary policy </h3>



<p>Volatility has been in full force as of late with the market expecting three to four rate hikes by the end of 2022 and fewer <a href="https://cms.blockworks.co/fed-minutes-show-supply-chain-woes-inflation-will-drag-on/" target="_blank" rel="noreferrer noopener">asset purchases by the Fed</a> in the face of higher inflation, which in theory would lead to less dollar liquidity. </p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="834" height="407" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rate-hikes.png" alt="" class="wp-image-13695" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rate-hikes.png?w=834 834w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rate-hikes.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rate-hikes.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rate-hikes.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rate-hikes.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rate-hikes.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rate-hikes.png?w=80 80w" sizes="(max-width: 834px) 100vw, 834px" /><figcaption>Source: Bianco Research</figcaption></figure>



<p>The US 10-year <a href="https://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm" target="_blank" rel="noreferrer noopener">TIPS</a> yield surged last week, which could be bond market participants waking up to the reality that the Fed may be less accommodative in 2022.</p>



<p>Jim Bianco, President of Bianco Research, <a href="https://twitter.com/biancoresearch/status/1480245556819677188?s=20" target="_blank" rel="noreferrer noopener">wrote</a>, &#8220;Simply put, the bond market saw one of its worst weeks in history because bond market players finally &#8216;got it&#8217; that the Fed is going to end liquidity. This kicked off a big the scramble to get out and not be the &#8216;bond bag holder&#8217; when the Fed printer is turned off.&#8221;</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="768" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/tips-1024x768.jpg" alt="" class="wp-image-13696" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/tips-1024x768.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/tips-1024x768.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/tips-1024x768.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/tips-1024x768.jpg?w=343 343w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/tips-1024x768.jpg?w=348 348w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/tips-1024x768.jpg?w=292 292w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/tips-1024x768.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/tips-1024x768.jpg?w=1200 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Bianco Research</figcaption></figure>



<p>&#8220;Meanwhile, growing expectations for higher rates + tighter liquidity conditions (coupled with a relatively strong economic outlook in the US vs. other regions) has helped breathe life back into the US dollar,&#8221; <a href="https://twitter.com/Kevin_Kelly_II/status/1480604636193116161?s=20" target="_blank" rel="noreferrer noopener">wrote</a> Kevin Kelly, Co-Founder of Delphi Digital.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="515" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rates-and-dxy-1024x515.jpg" alt="" class="wp-image-13697" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rates-and-dxy-1024x515.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rates-and-dxy-1024x515.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rates-and-dxy-1024x515.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rates-and-dxy-1024x515.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rates-and-dxy-1024x515.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rates-and-dxy-1024x515.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rates-and-dxy-1024x515.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/rates-and-dxy-1024x515.jpg?w=1045 1045w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Delphi Digital</figcaption></figure>



<h3 class="wp-block-heading">BTC note</h3>



<p>BTC dropped as low as $39,692 earlier today, according to data from <a href="https://www.coingecko.com/en/coins/bitcoin" target="_blank" rel="noreferrer noopener">CoinGecko</a>. The aforementioned expectations of &#8220;tightening&#8221; by the Fed in conjunction with the inherent amount of leverage used in digital asset markets are likely to blame for the bearish price action.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="961" height="486" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-3.51.29-PM.png" alt="" class="wp-image-13698" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-3.51.29-PM.png?w=961 961w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-3.51.29-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-3.51.29-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-3.51.29-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-3.51.29-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-3.51.29-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-3.51.29-PM.png?w=80 80w" sizes="(max-width: 961px) 100vw, 961px" /><figcaption>Source: Delphi Digital</figcaption></figure></div>



<p>Billions of dollars of long positions have been liquidated since the December 4th crash, according to data from <a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noreferrer noopener">Coinglass</a>. </p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="412" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bybt_chart-7-2-1024x412.png" alt="" class="wp-image-13699" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bybt_chart-7-2-1024x412.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bybt_chart-7-2-1024x412.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bybt_chart-7-2-1024x412.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bybt_chart-7-2-1024x412.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bybt_chart-7-2-1024x412.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bybt_chart-7-2-1024x412.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bybt_chart-7-2-1024x412.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bybt_chart-7-2-1024x412.png?w=1242 1242w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: coinglass.com </figcaption></figure>



<h3 class="wp-block-heading">NFTs</h3>



<p>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found below:</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="341" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-4.59.47-PM-1024x341.png" alt="" class="wp-image-13700" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-4.59.47-PM-1024x341.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-4.59.47-PM-1024x341.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-4.59.47-PM-1024x341.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-4.59.47-PM-1024x341.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-4.59.47-PM-1024x341.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-4.59.47-PM-1024x341.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-4.59.47-PM-1024x341.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-4.59.47-PM-1024x341.png?w=1218 1218w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="351" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-5.00.00-PM-1024x351.png" alt="" class="wp-image-13701" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-5.00.00-PM-1024x351.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-5.00.00-PM-1024x351.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-5.00.00-PM-1024x351.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-5.00.00-PM-1024x351.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-5.00.00-PM-1024x351.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-5.00.00-PM-1024x351.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-5.00.00-PM-1024x351.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/Screen-Shot-2022-01-10-at-5.00.00-PM-1024x351.png?w=1188 1188w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p>If you made it this far, thanks for reading! I am looking forward to catching up tomorrow.</p>



<hr class="wp-block-separator"/>



<p><strong>Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.</strong></p>



<hr class="wp-block-separator"/>


BTC Hovers Near Critical Support: Markets Wrap

<div id="highlights-block_617725d07bf3f" class="highlights">
        <ul>
                <li>Daily exchange volumes are down from the highs seen in May of 2021</li>
                <li>Activity on the Bitcoin network has been flat to down throughout 2021</li>
            </ul>
    
</div>



<p><meta charset="utf-8">The number of BTC wallet addresses holding 10 or more BTC has been in a downtrend since the end of 2020.</p>



<p>Daily exchange volume has yet to return to levels seen earlier in 2021 as they hover in the $25 billion to $50 billion range.</p>



<p>Active addresses on the Bitcoin network are down from 1.2 million at the beginning of 2021 to 995,000 today.</p>



<p>$120.87 million of long positions have been liquidated over the last 24 hours as a result of today&#8217;s BTC price action.</p>



<h3 class="wp-block-heading"><strong>Latest in Macro:</strong></h3>



<ul><li>S&amp;P 500: 4,786, -0.10%</li><li>NASDAQ: 15,781, -0.56%</li><li>Gold: $1,805, -0.36%</li><li>WTI Crude Oil: $75.99, +0.56%</li><li>10-Year Treasury: 1.482%, +0.001%</li></ul>



<h3 class="wp-block-heading"><strong>Latest in Crypto:</strong></h3>



<ul><li>BTC: $47,844, -6.70%</li><li>ETH: $3,831, -6.40%</li><li>ETH/BTC: 0.0800, +0.73%</li><li>BTC.D: 39.95%, -0.27%</li></ul>



<h3 class="wp-block-heading">Declining exchange volume</h3>



<p>Daily exchange volume has yet to return to levels seen earlier in 2021 as they hover in the $25 billion to $50 billion range, according to data from <a href="https://www.theblockcrypto.com/data/crypto-markets/spot" target="_blank" rel="noreferrer noopener">The Block</a>.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="911" height="391" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM.png" alt="" class="wp-image-13248" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM.png?w=911 911w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM.png?w=80 80w" sizes="(max-width: 911px) 100vw, 911px" /><figcaption>Source: The Block</figcaption></figure></div>



<h3 class="wp-block-heading">Stagnant activity on the Bitcoin network</h3>



<p>Active addresses on the Bitcoin network are down from 1.2 million at the beginning of 2021 to 995,000 today, according to data from <a href="https://studio.glassnode.com/metrics?a=BTC&amp;category=Network%20Stats&amp;m=addresses.ActiveCount&amp;s=1609179676&amp;u=1640649600&amp;zoom=" target="_blank" rel="noreferrer noopener">Glassnode</a>.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1024x576.png" alt="" class="wp-image-13252" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1024x576.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1024x576.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1024x576.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1024x576.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1024x576.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1024x576.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1024x576.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1024x576.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1024x576.png?w=1800 1800w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Glassnode</figcaption></figure></div>



<p>While institutional interest was a common narrative over 2021, the number of BTC wallet addresses holding 10 or more BTC has been in a downtrend since the end of 2020, according to data from <a href="https://studio.glassnode.com/metrics?a=BTC&amp;category=Addresses&amp;m=addresses.Min10Count&amp;s=1582131388&amp;u=1640649600&amp;zoom=" target="_blank" rel="noreferrer noopener">Glassnode</a>, as smart money took profits into price strength. </p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1024x576.png" alt="" class="wp-image-13253" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1024x576.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1024x576.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1024x576.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1024x576.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1024x576.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1024x576.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1024x576.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1024x576.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1024x576.png?w=1800 1800w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Glassnode</figcaption></figure>



<p>&#8220;&#8230;We are still digesting a large loss of active wallets from China and non-China growth, therefore, [the addition of new wallets needs to be greater than the loss of active wallets from China] to exceed that loss of accounts for the network to re-grow too. Likely a matter of time,&#8221; <a href="https://twitter.com/RaoulGMI/status/1475874111616335872?s=20" target="_blank" rel="noreferrer noopener">wrote</a> Raoul Pal, founder of Global Macro Investor. &#8220;Additionally, I didn’t mention that institutional rebalancing, tax-related selling and hedgies squaring books has also added to year-end weakness. This is more temporary, most likely&#8221;.</p>



<h3 class="wp-block-heading">Liquidations</h3>



<p>$120.87 million of long positions have been liquidated over the last 24 hours as a result of today&#8217;s BTC price action, according to data from <a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noreferrer noopener">Coinglass</a>.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="410" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-5-1024x410.png" alt="" class="wp-image-13263" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-5-1024x410.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-5-1024x410.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-5-1024x410.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-5-1024x410.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-5-1024x410.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-5-1024x410.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-5-1024x410.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-5-1024x410.png?w=1248 1248w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Coinglass</figcaption></figure></div>



<p>BTC futures open interest sits at $19.22 billion, according to <a href="https://www.coinglass.com/BitcoinOpenInterest" target="_blank" rel="noreferrer noopener">Coinglass</a>, so there are plenty of long side positions that are yet to be liquidated.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="420" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-6-1024x420.png" alt="" class="wp-image-13264" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-6-1024x420.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-6-1024x420.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-6-1024x420.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-6-1024x420.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-6-1024x420.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-6-1024x420.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-6-1024x420.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-6-1024x420.png?w=1218 1218w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Coinglass</figcaption></figure></div>



<h3 class="wp-block-heading">NFTs</h3>



<p>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found below:</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="336" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-1024x336.png" alt="" class="wp-image-13266" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-1024x336.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-1024x336.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-1024x336.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-1024x336.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-1024x336.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-1024x336.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-1024x336.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-1024x336.png?w=1228 1228w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="350" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-1024x350.png" alt="" class="wp-image-13267" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-1024x350.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-1024x350.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-1024x350.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-1024x350.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-1024x350.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-1024x350.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-1024x350.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-1024x350.png?w=1198 1198w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



<p>If you made it this far, thanks for reading! I am looking forward to catching up tomorrow.</p>



<hr class="wp-block-separator"/>



<p><strong>Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.</strong></p>



<hr class="wp-block-separator"/>


BTC Retreats as Digital Assets Sell Off: Markets Wrap

<div id="highlights-block_617725d07bf3f" class="highlights">
        <ul>
                <li>The ETH-to-BTC ratio has been trending upwards as ETH gains momentum</li>
                <li>ETH market structure implies bullish price action could be nearing</li>
            </ul>
    
</div>



<p>ETH continues to outperform BTC as the digital asset market recovers from last weekend&#8217;s sell-off.</p>



<p>ETH issuance continues to decline post-EIP-1559 implementation.</p>



<p>92% of all Ethereum addresses are in a state of profit.</p>



<p>Perpetual funding rates show relatively neutral sentiment among traders, except for Bitmex where traders are getting aggressive.</p>



<p>A look into the latest prices for top NFT collections.</p>



<h3 class="wp-block-heading"><strong>Latest in Macro:</strong></h3>



<ul><li>S&amp;P 500: 4,701, +0.31%</li><li>NASDAQ: 15,786, +0.64%</li><li>Gold: $1,783, -0.04%</li><li>WTI Crude Oil: $72.65, +0.83%</li><li>10-Year Treasury: 1.528%, +0.048%</li></ul>



<h3 class="wp-block-heading"><strong>Latest in Crypto:</strong></h3>



<ul><li>BTC: $50,174, -0.39%</li><li>ETH: $4,384, +2.42%</li><li>ETH/BTC: 0.0874, +2.63%</li><li>BTC.D: 40.56%, -1.42%</li></ul>



<h3 class="wp-block-heading">Ethereum</h3>



<p>ETH continues to outperform BTC as the digital asset market recovers from last weekend&#8217;s sell-off. The ETH/BTC ratio has broken out of a multi-month range after firmly breaking out over the .08 level on Dec. 4. The trend has continued and is running toward levels not seen since early 2018. </p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="601" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png" alt="" class="wp-image-12356" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=445 445w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=373 373w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ETHBTC_2021-12-08_17-47-25-1024x601.png?w=80 80w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Trading View</figcaption></figure></div>



<p>Ethereum issuance has fallen since the implementation of <a href="https://www.cnbc.com/2021/08/04/what-to-know-about-the-ethereum-london-hard-fork-eip-1559-upgrade.html" target="_blank" rel="noreferrer noopener">EIP-1559 back in August</a>. 1.147 million ETH has been burned over that period, leading to a net reduction of 68.35%, according to data from <a href="https://watchtheburn.com" target="_blank" rel="noreferrer noopener">watchtheburn.com</a>. </p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="588" height="760" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png" alt="" class="wp-image-12341" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png?w=588 588w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png?w=232 232w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png?w=199 199w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png?w=202 202w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png?w=169 169w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-4.30.09-PM.png?w=62 62w" sizes="(max-width: 588px) 100vw, 588px" /><figcaption>Source: watchtheburn.com</figcaption></figure></div>



<p>61.52 million addresses holding ETH, or 92% of all addresses, are in a state of profit according to data from <a href="https://app.intotheblock.com/coin/ETH/deep-dive?group=all&amp;chart=all" target="_blank" rel="noreferrer noopener">intotheblock.com</a>.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="683" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png" alt="" class="wp-image-12350" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=392 392w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=329 329w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/ITB_eth_historical_in_out_of_the_money_2021-12-08T21_44_32.021Z-1024x683.png?w=1200 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Intotheblock.com</figcaption></figure>



<p>Perpetual funding rates for ETH hold a slightly positive bias across all exchanges, except for Bitmex where traders are getting a bit aggressive according to data from <a href="https://app.laevitas.ch/dashboard/eth/derivs/overview" target="_blank" rel="noreferrer noopener">laevitas.ch</a>. The higher the funding rate, the more expensive it is for longs to keep positions open.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="365" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png" alt="" class="wp-image-12353" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.44.47-PM-1024x365.png?w=2048 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Laevitas.ch</figcaption></figure></div>



<p>A <a href="https://genesistrading.com/wp-content/uploads/2021/12/Genesis-Market-Monthly-November-2021-1.pdf" target="_blank" rel="noreferrer noopener">Genesis report</a> noted some layer-2 developments over the month of November include:</p>



<ul><li>Metis, an Optimism fork that allows data to be stored on IPFS, launched a $100 million ecosystem fund at the beginning of the month22.</li><li>And StarkWare, which relies on a different layer-2 technology (ZK rollups), raised $50 million at a $2 billion valuation23&nbsp;to accelerate expansion of the network.</li></ul>



<h3 class="wp-block-heading">Non-Fungible Tokens (NFTs)</h3>



<p>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found below:</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="330" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png" alt="" class="wp-image-12354" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.43-PM-1024x330.png?w=2048 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="280" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png" alt="" class="wp-image-12355" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-08-at-5.47.52-PM-1024x280.png?w=80 80w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



<p>If you made it this far, thanks for reading! I am looking forward to catching up on tomorrow.</p>



<hr class="wp-block-separator"/>



<p><strong>Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.</strong></p>



<hr class="wp-block-separator"/>


ETH Outperforms BTC as the Market Attempts Recovery: Markets Wrap

<div id="highlights-block_109da663053894bbbda91adbce4f10da" class="highlights">
        <ul>
                <li>BTC searches for direction in the midst of mixed sentiment among market participants</li>
                <li>Ubisoft, a large traditional game developer, announces in-game NFT integration</li>
            </ul>
    
</div>



<p>Minor liquidations have taken place since bitcoin&#8217;s (<a href="https://blockworks.co/price/btc">BTC</a>) price topped out earlier today near $52,000.</p>



<p>BTC could be a beneficiary of lower bond yields as we enter into the new year.</p>



<p>PlanB&#8217;s BTC stock-to-flow model appears to be invalidated.</p>



<p>Bitcoin&#8217;s hash rate has made a full recovery since China banned mining earlier in 2021. </p>



<p>Three Arrow Capital purchased $400 million in <a href="https://blockworks.co/price/eth">ETH</a>.</p>



<p>Ubisoft became the first major game studio to implement in-game NFTs.</p>



<p>First Trust filed for a metaverse ETF.</p>



<h3 class="wp-block-heading"><strong>Latest in Macro:</strong></h3>



<ul>
<li>S&amp;P 500: 4,686, +2.07%</li>



<li>NASDAQ: 15,686, +3.03%</li>



<li>Gold: $1,784, +0.20%</li>



<li>WTI Crude Oil: $72.03, +3.98%</li>



<li>10-Year Treasury: 1.468%, +0.085%</li>
</ul>



<h3 class="wp-block-heading"><strong>Latest in Crypto:</strong></h3>



<ul>
<li><a href="https://blockworks.co/price/btc">BTC</a>: $50,657, +0.54%</li>



<li><a href="https://blockworks.co/price/eth">ETH</a>: $4,316, -0.51%</li>



<li>ETH/BTC: 0.0850, -1.32%</li>



<li>BTC.D: 41.16%, +0.42%</li>
</ul>



<h3 class="wp-block-heading">BTC</h3>



<p>BTC continues to hover near $50,000 as it tries to find direction. The rally up to $52,000 was short lived, as levered longs have been liquidated in recent hours — albeit small numbers when zooming out. </p>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="374" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-2-1024x374.png" alt="" class="wp-image-12299" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-2-1024x374.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-2-1024x374.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-2-1024x374.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-2-1024x374.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-2-1024x374.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-2-1024x374.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-2-1024x374.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-2-1024x374.png?w=1370 1370w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Source: Coinglass</figcaption></figure></div>


<p>While macro uncertainty has digital asset investors nervous, some traditional financial analysts seem to think that the next year could be bright for crypto despite the backdrop of tightening monetary policy. </p>



<p>&#8220;Bitcoin will face initial headwinds if the stock market drops, but to the extent that declining equity prices pressure bond yields and incentivize more central-bank liquidity, the crypto may come out a primary beneficiary,&#8221; reads <a href="https://assets.bbhub.io/professional/sites/10/1489771_Crypto-Dev2021Outlook.pdf" target="_blank" rel="noreferrer noopener">Bloomberg&#8217;s 2022 Crypto Outlook</a> report. &#8220;Our graphic depicts U.S. yields potentially on a trajectory to follow Japan and Europe into negative territory. The upcoming digital reserve asset may be a top standout to benefit.&#8221;</p>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="693" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.02.10-PM-1024x693.png" alt="" class="wp-image-12300" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.02.10-PM-1024x693.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.02.10-PM-1024x693.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.02.10-PM-1024x693.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.02.10-PM-1024x693.png?w=380 380w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.02.10-PM-1024x693.png?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.02.10-PM-1024x693.png?w=324 324w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.02.10-PM-1024x693.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.02.10-PM-1024x693.png?w=1182 1182w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Source: Bloomberg</figcaption></figure></div>


<p>The crypto fear and greed index is currently sitting at 25, <a href="https://alternative.me/crypto/fear-and-greed-index/" target="_blank" rel="noreferrer noopener">according</a> to data from alternative.me. A lower number indicates fear and a higher number indicates greed on a 100 point scale.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="722" height="640" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.08.59-PM.png" alt="" class="wp-image-12301" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.08.59-PM.png?w=722 722w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.08.59-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.08.59-PM.png?w=290 290w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.08.59-PM.png?w=294 294w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.08.59-PM.png?w=247 247w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-6.08.59-PM.png?w=80 80w" sizes="(max-width: 722px) 100vw, 722px" /></figure></div>


<h3 class="wp-block-heading">Stock-to-flow model looks to be invalidated</h3>



<p><a href="https://planbtc.com" target="_blank" rel="noreferrer noopener">PlanB&#8217;s</a> renowned stock-to-flow model is looking more invalidated. On Oct. 31, PlanB took to <a href="https://twitter.com/100trillionUSD/status/1454962054297788417?s=20" target="_blank" rel="noreferrer noopener">Twitter</a> calling for $98,000 by the end of November and $135,000 by the end of December. BTC would need to have a remarkable end of year run to give his famous model a chance of survival. </p>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="464" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-3-1024x464.png" alt="" class="wp-image-12302" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-3-1024x464.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-3-1024x464.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-3-1024x464.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-3-1024x464.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-3-1024x464.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-3-1024x464.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-3-1024x464.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/bybt_chart-6-3-1024x464.png?w=1104 1104w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Source: Coinglass</figcaption></figure></div>


<h3 class="wp-block-heading">Bitcoin network hash rate</h3>



<p>The Bitcoin network&#8217;s hash rate has almost fully recovered since the <a href="https://www.aljazeera.com/economy/2021/5/24/china-crackdown-forces-crypto-mining-operators-to-end-operations" target="_blank" rel="noreferrer noopener">China mining</a> ban earlier this year. The recent strength of the world&#8217;s largest digital asset&#8217;s hash rate could be viewed as a sign of the network&#8217;s health.</p>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/@Guzmanpintos-1024x495.jpg" alt="" class="wp-image-12303" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/@Guzmanpintos-1024x495.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/@Guzmanpintos-1024x495.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/@Guzmanpintos-1024x495.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/@Guzmanpintos-1024x495.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/@Guzmanpintos-1024x495.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/@Guzmanpintos-1024x495.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/@Guzmanpintos-1024x495.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/@Guzmanpintos-1024x495.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/@Guzmanpintos-1024x495.jpg?w=80 80w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Source: @Guzmanpintos</figcaption></figure></div>


<h3 class="wp-block-heading">Three Arrow Capital loading up on ETH</h3>



<p>Roughly 92K ETH were purchased on FTX, Binance and Coinbase and sent to wallets marked as Three Arrow Capital (3ac) by <a href="https://www.nansen.ai" target="_blank" rel="noreferrer noopener">Nansen</a>, according to <a href="https://twitter.com/WuBlockchain/status/1468159951780532228?s=20" target="_blank" rel="noreferrer noopener">Wu Blockchain</a>. </p>



<p>The wallet address of 3ac can be found <a href="https://etherscan.io/address/0x4862733b5fddfd35f35ea8ccf08f5045e57388b3" target="_blank" rel="noreferrer noopener">here</a> on Etherscan.</p>



<p>The move comes as a surprise to many digital asset investors. Zhu Su, CEO and CIO at 3ac, wrote recently on Twitter: &#8220;Yes I have abandoned Ethereum despite supporting it in the past. Yes Ethereum has abandoned its users despite supporting them in the past.&#8221;</p>



<h3 class="wp-block-heading">Non-Fungible Tokens (NFTs)</h3>



<p>Ubisoft, the game developer behind the popular Tom Clancy series, will become the first major game studio to incorporate NFTs in-game, <a href="https://decrypt.co/87752/ubisoft-first-major-gaming-company-launch-in-game-nfts" target="_blank" rel="noreferrer noopener">according</a> to a Decrypt report.</p>



<p>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found below:</p>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="334" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.21-PM-1024x334.png" alt="" class="wp-image-12297" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.21-PM-1024x334.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.21-PM-1024x334.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.21-PM-1024x334.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.21-PM-1024x334.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.21-PM-1024x334.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.21-PM-1024x334.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.21-PM-1024x334.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.21-PM-1024x334.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.21-PM-1024x334.png?w=2048 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Top Ethereum Projects</figcaption></figure></div>

<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="284" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.28-PM-1024x284.png" alt="" class="wp-image-12298" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.28-PM-1024x284.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.28-PM-1024x284.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.28-PM-1024x284.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.28-PM-1024x284.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.28-PM-1024x284.png?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.28-PM-1024x284.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.28-PM-1024x284.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.28-PM-1024x284.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-07-at-5.33.28-PM-1024x284.png?w=80 80w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Top Solana Projects </figcaption></figure></div>


<p>If you made it this far, thanks for reading! I am looking forward to catching up on tomorrow.</p>



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