GB Market Commentary 26/11/2021
by Freddie Evans
The markets continue in its depressed period as bitcoin has seen $300 million liquidated within one hour to see Bitcoin move below $55,000 to a 6-week low. It now sits at $55,100. Most of the crypto market has experienced more of a severe crash, with the likes of Solana falling almost 6% over the last 24 hours. Ethereum is down 5% to $4100.
In better news, Morgan Stanley adds more grayscale bitcoin shares as they buy the dip. They now have over $300 million worth of bitcoin in greyscale shares.
Australian retirement fund, Rest Super, will start buying crypto – no specifics on what coins they will buy, but they have announced that they will venture into the space. They control $46 billion in assets, so their allocation is significant for the space in both demand and a signal that more may follow.
A new milestone for eth as over 1 million eth has been burnt since the change from EIP-1559, in early August. Eth still isn't deflationary, but the burning of eth is making a 66% reduction in the effect of eth creation that we had before the change. But this is just the start as when eth moves to prove of stake expected in 2022; we will see a 90% reduction in Ethereum given out as block rewards.
In NFTs, Christie's has announced that they are holding an NFT auction in partnership with Opensea, the largest NFT marketplace. The auction will be a digital art exhibition and hosted online. NFTs have seen such huge amounts of revenue that it is hard for the largest players in the art world to avoid it. Rather than being opposed to the crypto space, like many big banks are, they embrace it so as not to be left behind when smaller competitors take over.