State of the Market #83



Club News

Hey everyone, I am very excited that we will be bringing back the in-person certificate program next semester. The certificate program is an educational program that is done weekly and teaches the basics of blockchain all the way to learning solidity (Coding language for Ethereum). Something new that we have not done is having companies come in to teach a concept that can you give members exposure to internship opportunities. If you have any interest, the google form is below.

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Also, to clarify the certificate is not associated with the University of Texas and you will not receive any class credit.

Market Summary

Top Stories

Ecoinometrics - Market sentiment


In light of Bitcoin’s drawdown market for the past couple of months, the crypto community has become quite wary of investing recently. A lot of people have been doubting their position but in the long term, one should not fret. It is important to look past the price of the bitcoin and look into the market metrics to get an idea of Bitcoin’s long-term longevity. A great insight is the accumulation trend. One should break down the BTC addresses based on how many BTC each address controls. This gives you an idea of what the small fish and whales are doing on-chain. At this current moment, the small fish (controlling less than 1 BTC) are buying more and the whales (addresses controlling 1k to 10k BTC) are also loading up on BTC at around the $40,000 mark.

Based on the graph, the small fish are back at accumulation levels that were last seen when Bitcoin hit its $ 64k price. Furthermore: the addresses below 10 BTC are accumulating, Between 1k and 10k BTC, addresses are accumulating, but for the rest, everything else is pretty much stagnant. In regards to the macro trend, there are no overall reasons to doubt Bitcoin; that being said, it is important to note that the broader market risk regarding the Fed’s regulatory plans.

China says all cryptocurrency-related transactions are illegal and must be banned


China finally did it. Last week, they declared all activities related to cryptocurrencies as illegal. 

10 Chinese government agencies, including the People's Bank (China’s Fed), deemed all cryptocurrency-related transactions illegal in the country, citing concerns about national security and the "safety of people's assets."

This means that anyone facilitating cryptocurrency transactions is subject to legal prosecution, including people who live in the country but work for foreign exchanges that provide services in China. 

The worst part: this restriction goes further than anything the country had ever done after clearly declaring bitcoin and ether as not qualifying as legal tender. 

Coins, already used to volatility stemming from the Chinese government’s actions, did suffer a downturn, however not as loud as usual. 

What’s next: Experts see nothing new in China's attitude towards cryptocurrencies, as it has been heavily regulating them since 2013.

However, some consider that cryptocurrency trading will move to places in countries with more stable regulatory environments, which would benefit them in the long run. The question is, how will it hurt China, if at all?

Record Doge NFT Sale Highlights Growing Demand for Fractionalization


Investors, in a recently fractionalized NFT of the original Shibu Inu Dogecoin image, were able to push the value of the asset to more than $225 million dollars after they sold nearly a 20% stake in a 24 hour window.

The sale of the NFT, originally purchased for a sale price of $4 million dollars, highlights a growing trend in the marketplace, fractionalized ownership of NFT’s through new platforms.

It’s argued that NFT fractionalization gives the wider community more access to the asset, enabling it to become productive and lowers risk around NFT pricing. Critics argue however that it exposes new investors to pump and dump fraud schemes and other scams.

Chart of the Week

Bitcoin Short-term Holders are currently seeing their conviction tested.

The STH-SOPR metric trades at or below 1.0 in:

- Bullish shake-outs

- Bear markets

- Capitulation events

STHs are currently realising minor losses on-chain, spending coins that last moved at higher prices

Video of the Week

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Texas Blockchain’s ‘State of the Market’ is a student-led editorial. None of the views expressed by the authors should be taken as the view of the University of Texas at Austin or the Texas Blockchain organization. Furthermore, none of the views expressed should be taken as financial advice in any circumstance.