GB Market Commentary 07/09/2022
by Marcus Sotiriou
The crypto market has dropped below $1 trillion again as Bitcoin nears towards the local bottom of $17,600. On chain analytics also demonstrate bearish sentiment among market participants.
An example of this is the Bitcoin adjusted SOPR chart, provided by Glassnode, showing that investors are cashing out during bear market rallies. This indicator suggests that investors selling to “get their money back” at their cost basis, as there is a huge resistance at 1, which is the breakeven threshold. I think the mainstream narrative of a recession and high inflation has caused fear among market participants.
The seasonality of Bitcoin’s monthly price change is congruent with September being a negative month, shown by the chart below, as 7 of the past 9 Septembers have been red.
However, Bitcoin is already down by over 5% this month and 7 of the past Octobers have been green. Therefore, if Bitcoin’s seasonality over the past 9 years is anything to go by then this fear could be resulting in a great buying opportunity.
Ethereum-based metaverse platform, Sandbox, is partnering with the Korean subsidiary of Renault to enter the metaverse space. Renault Korea is aiming to establish its brand presence in the metaverse to expand its customer base, whilst also presenting Renault-based virtual automotive experiences to customers. The Sandbox Korea’s CEO, Cindy Lee, said, “this partnership is an excellent example of a collaboration. The Sandbox can develop without any industrial boundaries. We are able to introduce new types of experiences that combine automobiles and digital assets in The Sandbox”.
This isn’t the first time we are seeing automobile brands enter the metaverse, as Nissan, a Japanese automaker, has used the metaverse to help launch the Sakura, an electric car. The company set up a virtual world in which potential customers could drive the car in a virtual world which the company set up, allowing them to examine its characteristics.