South Korean Presidential Candidate to Accept Donations in Crypto & Issue NFTs for upcoming Election

GB Market Commentary 04/01/2022

by Marcus Sotiriou

Whilst Bitcoin remains flat in the short term, on chain metrics like the paper hands ratio from Glassnode suggest a bottom could be nearing. This is the ratio of young coins active in the last 6 months / circulating supply. If this ratio gives a high reading it suggests retail greed but if it is low, it suggests the market is experiencing retail capitulation. As seen on Glassnode’s chart below, we are at 24.5% currently, the lowest level since the 2015 bear market. Every time the ratio has reached around 25% previously, it has sparked a multi-year bull market with incredible gains, which indicates that this fearful period could be a great buying opportunity based on historical data.

In addition, the Bitcoin hashrate has reached a new all-time-high. The hashrate is a measure of the amount of computing power that is securing the network. This indicator shows how Bitcoin is the world’s most secure computing network so new highs complement Bitcoin’s fundamental value.

Furthermore, crypto adoption continues its reach into the mainstream as Lee Jae-myung, nominated by the ruling party in South Korea for the upcoming presidential elections this spring, will be raising funds in cryptocurrencies for his campaign and issue non-fungible tokens for supporters, in order to appeal to tech-savvy Korean voters. Lee Kwang-jae, who heads the committee on future economy in the campaign team, said “With politics, we should break the regulations and foster new industries such as metaverse and NFT and give hope to the young people.” This support for cryptocurrencies from bureaucrats in such high positions is refreshing to see, as regulation remains in my opinion the biggest threat to the crypto industry.