GB Market Commentary 12/10/2021
by Jonas Luethy
Bitcoin is currently trading at a local high of $57,400, a high not seen since May earlier this year. As bitcoin approaches $58’000, almost all of the may correction has been recovered. Altcoins are mostly down as money is being siphoned away from alts and into Bitcoin. Once BTC stops moving upwards, altcoins should be able to recover and catch up to bitcoins impressive price action.
Glassnode, an on-chain analytics provider, has revealed that 70% of the Bitcoin supply is in wallets that have not seen outflows in the past 155 days, showing that long term holders are not willing to sell yet despite the 5 month high. Glassnode also reported that long-term holders have collectively bought 2.37 million BTC over the past seven months, while only 186’000 new BTC has been mined in the same period. The amount of active on-chain addresses has also increased by 19% to levels last seen in December 2020, before this year’s bull run.
CEO and Chairman of J.P Morgan, Jamie Dimon has once again reverted to attacking bitcoin, stating yesterday at a conference that he thought the asset was worthless. Dimon has been criticising bitcoin since 2014, when he first called it a terrible store of value. Despite this, clients of the bank are asking for bitcoin and other digital assets more and more. The rest of the company seems to be siding more with the clients than the CEO, as since August, institutional clients have had access to a passively managed BTC fund offered by J.P Morgan and some analysts and strategists have even suggested 1% portfolio allocation to bitcoin.
Finally, Texas democrats have announced that they plan to use NFTs to raise funds for candidates. The Texas Democratic Party has partnered with Front Row, a marketplace geared towards funding progressive causes. Yesterday the firm announced they had already minted digital images of key moments, which once sold, will directly contribute to political causes and candidates. While numerous political candidates have announced they will be accepting cryptocurrency donations, this is the first time NFTs have made a real appearance in US politics until now.