Get The Litepaper

Another Day, Another Beat Down For Crypto

It’s looking a little shaky out there for bulls. Bitcoin ($BTC.X) and altcoins faced renewed selling pressure throughout the day. 

Many analysts and veteran crypto traders are comparing the current technical and fundamental environment to November and December of 2018 – when Bitcoin collapsed from the $6,000 value area to $3,000. 

But not everything is all doom and gloom. Part of today’s Litepaper goes over some interesting on-chain analyses for Bitcoin. 

Overall, it’s been a red day for crypt – the one exception on our list is Tron ($TRX.X) – which barely edged out a small gain. 

Here’s how the market looked at the end of the trading day:

Tron (TRX)
$0.05
0.17%
Monero (XMR) $141.89 -0.64%
Bitcoin (BTC) $16,882 -0.84%
Ethereum (ETH)
$1,232
-1.32%
Uniswap (UNI)
$6.02
-1.39%
Bitcoin Cash (BCH) $108.97 -1.48%
Litecoin (LTC) $77.07 -1.49%
Shiba Inu (SHIB) 0.00000911 -1.62%
Stellar (XLM) $0.08 -1.74%
XRP (XRP)
$0.38
-1.76%
Altcoin Market Cap
$472 Billion
-2.04%
Total Market Cap $796 Billion -1.82%

Final week to secure your chance to win $100. 💰

Answer a short survey to be entered into a random drawing to win one of five $100 American Express e-gift cards.

Your response will help improve the newsletter experience. You have until Friday, December 9th, at 11 am ET, to complete the survey. There is only one entry per participant. Good luck, and thank you for your participation!

Enter To Win


Interesting On-Chain Activity For Bitcoin Featured Image

Have you ever wondered what percentage of people holding Bitcoin is in the red or the green? Wondering if people are still interested in crypto and Bitcoin? One of the secret weapons of cryptocurrencies is on-chain analytics. On-chain analysis gives normal people like you and me access to the same information that the bigwigs have. 

It’s like having the ability to see dark pools in the stock market. Let’s take a look at some of this on-chain data now. 

In The Money/Out Of The Money

According to IntoTheBlock’s metrics, 49% of all addresses holding BTC are out of the money. On the other hand, 46.26% are in the money. In other words, more people are in the red than sitting positive.

Wallets With 10 Or More BTC

The image below shows Bitcoin’s price action( white line) and the number of BTC addresses that have 10 or more Bitcoin (blue line). 

BTC addresses with 10 or more Bitcoin

While prices have continued to decline throughout 2022, the number of wallets holding 10 or more BTC increased. 

In Flows And Out Flows

When we talk about inflows, we’re talking about BTC going to an exchange.

For outflows, we’re talking about BTC moving off an exchange. 

Analysts interpret the inflows of BTC as a bearish sign because transactional history shows that the BTC heading to an exchange is sold back in U.S. Dollars. 

On the other hand, analysts view outflows as bullish because that means BTC is moving away from a place to be sold and (usually) into a wallet to hodl. 

Notice the 7-Day and 30-Day change for inflows below:

Inflows

Now compare those to the outflows chart below:

Outflows

A significant difference between the drop in inflow vs. the growth in outflows. 

Putting It All Together

Despite prices for Bitcoin and the broader crypto market continuing to fall, there are clear signs that individuals and bigger entities are accumulating more Bitcoin as some analysts interpret the data. 

In addition, there are signs that the selling pressure has diminished somewhat. But that doesn’t mean it is finished – it just slowed down. 


Grayscale Sued Featured Image

Hedge fund Fir Tree Capital Management filed a lawsuit against Grayscale Investments over “potential mismanagement and conflicts of interest,” according to a Bloomberg report. 

At the core of the lawsuit, filed in Deleware, is for Grayscale to lower its fees, begin redemptions, and hand over documents dealing with Grayscale’s relationship with the Digital Currency Group. 

Digital Currency Group has several big-name crypto subsidiaries: Genesis Global Trading, Grayscale Investments, Foundry, Luno, and CoinDesk. 

Another demand from Fir Tree Capital is that Grayscale terminate its attempts to convert the Bitcoin trust ($GBTC) into an ETF. 

Fir Tree fears the continued attempts to convert the trust into an ETF will be long, costly, and would likely benefit Grayscale because they would continue to collect their fees. 

A Grayscale spokesperson spoke to the cryptocurrency news outlet, Cointelegraph, and said, “We remain 100% committed to converting GBTC to an ETF, as we strongly believe this is the best long-term product structure for GBTC and its shareholders.”

Grayscale’s most recent attempt to convert into an ETF failed, resulting in Grayscale suing the SEC in October. 

The GBTC Discount to NAV remains near historical all-time lows, currently at -43.61%

GBTC has traded lower since the news came out about the lawsuit. In combination with the selling pressure in crypto, the result has been a nearly -7% drop for GBTC.


Happening Now In Crypto includes relevant and important updates for multiple cryptocurrencies such as: governance decisions , voting, forks, changes to rewards, upgrades, and other important changes. 

Synthix ($SNX.X) – Voting has started on a proposal to update cross-asset swaps on the 1inch ($1INCH.X) integration address. Voting on this proposal will end on Dec. 14, 2022. See Messari’s Governor Proposal page for more info. 🤖

PancakeSwap ($CAKE.X) – The PancakeSwap team has relaunched new stable pools for the previously impacted pools. The new farms launched on Dec. 6, 2022. Liquidity providers must move their liquidity to the new pools to continue earning rewards. More from PancakeSwap’s Medium page. 🍰

Ankr Network ($ANKR.X) – The Ankr team announced it would mint ankrBNB in line with the aBNBc and aBNBb token holders snapshot as of Dec. 2, 2022, at 00:43 UTC (Block number: 23545403). The Ankr team still needs to deploy the ankrBNB token and has not scheduled a release date. See Ankr’s official Twitter post for more.

Polygon ($MATIC.X) – The Polygon team shared Heimdall mainnet update v0.3.0 on Dec. 6, 2022. This release includes a new CLI in Bor and changes how Bor and Heimdall are deployed to follow DevOps best practices. The upgrade is backward incompatible. The hard fork is scheduled for today (Dec. 7, 2022). 💠


Bullets

Bullets From The Day:

📻 So Winamp is still a thing – they announced via their official Twitter channel they’re diving into the NFT space. The new 5.9.1 version for the desktop version of Winamp allows users to play the music NFTS. Users will need to link their MetaMask wallet. Winamp is compatible with Ethereum and Polygon’s networks. Current support is limited to ERC-71 and ERC-1155 audio and video files. More from their official Twitter post.

🐒 Staking Yugo Labs’ ApeCoin ($APE.X) began Monday and has already attracted over $30 million in ApeCoin for staking. A good sized amount considering U.S. hodlers are not able to participate. The DAO that ‘runs’ ApeCoin, The Ape Foundation, voted to restrict U.S. Bored Ape holders citing a poor regulatory environment. CoinDesk has more.

🪙 A new stablecoin arrives on the Tron ($TRON.X) ecosystem: an offshore Chinese Yuan (CHNT). Tether Operations Limited, the same entity that controls the stablecoin, Tether ($USDT.X), announced the deployment of CHNT first to the controversial derivatives and spot exchange, Bitfinex. CNHT is already available on as an ERC-20 token. More from tether.to.


Credits & Feedback

Today’s Litepaper was written by Jon Morgan. Let him know how he did: