December 28, 2022

2022: The Year Crypto Said F U To You

Like the stonk market, crypto is facing another red day on top of another red day. 🟥

This time of year is typically slow and meandering, with little participation – but that doesn’t mean the volatility can’t be nuts.

The fewer the number participating, the easier it is to move markets – theoretically.

In today’s Litepaper, we’re going to look at just how low Bitcoin is, whale accumulation, and Solana’s slow death.

The only bright spot today was $TRX.X – which is, so far, the best major market cap performer for 2022. YTD, it’s down -28.96%; the next best is $XMR.X at -41.75%. Yup.

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

TRON (TRX)	$0.054	1.31%
Monero (XMR)	$146.12	0.27%
Bitcoin (BTC)	$16,597	-0.39%
Atom (COSMOS)	$9.18	-0.67%
BNB (BNB)	$243.79	-0.68%
Litecoin (LTC)	$67.29	-1.07%
Ethereum (ETH)	$1,193	-1.28%
Uniswap (UNI)	$5.06	-1.54%
Shiba Inu (SHIB)	$0.00000797	-2.32%
Polygon (MATIC)	$0.79	-2.44%
Altcoin Market Cap	$439 Billion	-1.52%
Total Market Cap	$758 Billion	-1.15%

Crypto

Holy All Time Lows Batman

A look at $BTC.X‘s price chart only shows part of a picture that describes how beaten down it is. Other perspectives show how really beaten down it is.

Monthly Relative Strength Index (RSI)

In a nutshell, the RSI is a momentum indicator used by analysts and traders to interpret how over-bought or over-sold an instrument is.

On Bitcoin’s monthly chart, the RSI value isn’t as important as what the current monthly RSI value represents: an all-time low. This is the lowest Bitcoin’s monthly RSI has ever been.

Big Gaps

In the image below, the only thing you need to focus on is the space between the bodies of the candlesticks and the Tenkan-Sen. A gray/black blob represents the space to focus on.

Gaps between the bodies of candlesticks and the Tenkan-Sen don’t last long and often correct within four to five periods.

The current stretch of seven candlesticks of significant gaps is a record for Bitcoin. 🤯

Crypto

Whales Keep Accumulating

MicroStrategy Founder and Chairman Michael Saylor took to Twitter this morning to announce that $MSTR picked up another 2,500 more Bitcoin to bring MSTR’s total to 132,500. 🪙

MicroStrategy has increased its #Bitcoin Holdings by ~2,500 #BTC. As of 12/27/22 @MicroStrategy holds ~132,500 bitcoin acquired for ~$4.03 billion at an average price of ~$30,397 per bitcoin. $MSTR https://t.co/lcMeULcGQk

— Michael Saylor⚡️ (@saylor) December 28, 2022

Whales and large wallets, in general, show continued accumulation in Bitcoin and other altcoins.

On-chain analysis platform IntoTheBlock shows that outflows from exchanges (considered bullish for Bitcoin by analysts) continue to be consistent and stronger than inflows.

The biggest outflow of Bitcoin from exchanges in 2022 was on November 28, when 152,400 Bitcoin left the exchanges. The net flows for November 28 were 129,080 Bitcoin – a roughly 4.5:1 outflow vs. inflow ratio. 👏

Crypto

Solana Swiftly Dying

Solana ($SOL.X) has had a rough year – and it recently got worse.

Two of Solana’s largest NFT projects, DeGods and yOOts, are migrating away from SOL.

DeGods is moving to $ETH.X, while yOOTs is moving to $MATIC.X.

The move is not entirely surprising. Solana’s history makes it as prone to failure as a supply line for the Russian army and as reliable as a successful North Korean missile test.

Solana is currently down over -98% from its all-time highs and down -94% YTD. 👎

Bullets

Bullets From The Day:

🦑 Kraken announced via its blog that it will shutter its operations in Japan by the end of January 2023. Citing the ongoing crypto winter/bear market, Kraken’s exit from the Land of the Rising Sun is in line with its other cost-cutting measures (dropping 30% of its workforce). Kraken is one of the oldest crypto exchanges in the world (2011). Kraken founder Jesse Powell remains bullish on crypto despite the bear market. Kraken’s blog has more.

⤵️ For the first time since 2018, Bitcoin underperformed stocks and gold. A combination of massive scandals, hacks, and fraud within the space for 2022 added more fuel to the fire than was necessary. However, analysts state that since March 2020, Bitcoin has outperformed all other assets. From the March 2020 lows, Bitcoin remains up more than 332% despite the losses in 2022. More from Cointelegraph.

🤖 Robocallers are now on the prowl and using FTX’s bankruptcy to scam people out of money. But instead of trying to reach grandma and grandpa, they’re after the younger crypto demographic. Law enforcement officials warn that a new tactic by the scammers is not to target a victim who knows about crypto but rather an acquaintance, like a spouse, who may know how to access secret keys and wallets. Bitcoinist has more.