Bitcoin Is Interesting

The News From Planet Ruby—Friday, December 22, 2023

• Bitwise, CPI.

• FTX, Senator Liz. Again.

Inflation Cools

Following encouraging inflation data from the US last week, the UK has followed suit. A surprise fall to 3.9% has led to suggestions that the Bank of England may cut rates sooner than expected. This would be even more likely if the country makes the "hard landing" that the US has apparently been able to avoid.

The DXY is at its lowest level since July, putting in a series of lower highs and lower lows, potentially targeting 100 or below. Meanwhile, major stock indices including the S&P 500, NASDAQ, and Dow Jones, have hit or passed their all-time highs.

Not every year sees a Santa Rally, but Christmas 2023 is definitely bringing risk traders some gifts.

Bitcoin Reclaims 50% Level

Bitcoin's correction, or perhaps more likely consolidation, may already be over. Following the $45,000 local top two weeks ago, BTC tested $40k twice, before rapidly reclaiming the 50% line (measured from the $69k peak to the bear market low) a little above $42,000.

Analysts are divided on where things could go from here. While the mood music around ETFs is extremely positive, we're seeing bearish divergence on different timeframes, and the Puell Multiple is signaling an intermediate (mid-cycle) top.

Things could get volatile over the holiday season, with hype building towards ETF approval but liquidity remaining low, as institutions don't trade on public holidays. Big moves up or down would come as no surprise.

ETF Advertising Begins

The marketing campaign for spot BTC ETFs has kicked off, with a short advert featuring the "World's Most Interesting Man" from Bitwise. Expect more in the near future. Since the final details appear to have been nailed down between the SEC and different providers, institutions are going to be spending huge amounts to compete for customer money.

FTX liquidators seem to be using every shady trick in the book to maximize their own revenues at the expense of those who lost money when the exchange collapsed.

Elizabeth Warren, whose anti-crypto bill would practically eradicate the digital asset industry from the US, has criticized elements of the US Military and intelligence community for their stance on Bitcoin—drawing fire from one expert who "literally just wrote the book on the national strategic security implications of Bitcoin".

Ethereum is, once again, struggling under the load of transactions. Gas is typically in the 50-100 gwei region, pricing out smaller users.

What's New In The SKALEVERSE?

A new report by CoinGecko highlights shifts in the Web3 gaming industry. One notable feature is that it picks out SKALE as the most active blockchain for gaming, with over 230,000 daily active addresses.

That's all for this week!

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