The TIE Weekly Insights (Jan 5)
Highlights from last week:
- Binance Launches Bilateral Bitcoin European Options
- KuCoin Partners with BTC Direct to Enable More Payment Options for Crypto
- VanEck Files with SEC to Launch Bitcoin Trust
- BTC Mining Machine Maker Eband to Launch Crypto Exchange in 2021
- Peter Johnson, Partner at Jump Capital, Makes 2021 Predictions
- Blockstream Launches Open-Source Hardware Wallet for Bitcoin and Liquid Assets
- Ethereum’s Layer 2 Scaling Solution Developer, Optimism, Plans to Release Mainnet on Jan 15th
- Bittrex Delists Privacy Coins
The total cryptocurrency market cap has reached a new all time high of $909B, passing the previous high of $830B set on January 7th, 2018. With the recent surge in institutional interest, it seems like it's only a matter of time before the crypto ecosystem passes $1T.
With Bitcoin pushing higher into price discovery, many altcoins have seen high returns as well. The median asset return this past week was +9.4%, with ETH (+42%), LTC (+26%), BTC (+25%), and BCH (+25%) all increasing by double digits. Investor sentiment has continued its steady rise — every major has a positive long term sentiment score except for XTZ. Trading volume was down -7%, with XRP (-47%), XLM (-34%), and EOS (-31%) taking the biggest hits. Tweet volume was up +23% as Bitcoin, Ethereum, and some more assets hit new highs in Twitter conversations.
Now that we’ve all made it through the year, let’s take a look at how the major cryptocurrencies performed. Despite a global pandemic and widespread macroeconomic uncertainty, 2020 was a phenomenal year for digital assets. As governments rapidly increased money supplies for deficit spending and stimulus, investors started looking for a hedge against inflation. The crypto market was rewarded greatly, as every major crypto saw positive returns in the past 12 months. The median asset returned +183%, with LINK (+524%), ETH (+466%), and BTC (+304%) leading the way. EOS was the worst performing major, roughly breaking even.
Bitcoin Continues to Push Higher
Back to this week… The price of BTC traded within a 34% range, staying well above the volume weighted average price (VWAP) for the majority of the 7 days. On Monday, price set the low of the week at $25,880 before climbing up to the new all time high of $34,778 on Saturday. Investor sentiment remained positive for the entire week, reaching a peak of 77 during the weekend.
Bitcoin Reaches New Audience
While institutions have started this crypto rally, retail has definitely arrived and the interest appears to be larger than 2017. The number of unique Twitter users talking about Bitcoin in a single day has hit a new all time high of 66,832. This is ~2,200 more than the previous high of 64,653 set in December of 2017.
The Flippening: LTC and XRP
Litecoin’s market cap ($10.7B) has passed XRP ($10.3B) for the first time since 2017, as Ripple continues to get hit with regulatory actions. This puts LTC at #4 in market cap rankings, growing by a total of $8.1B in 2020 (+311%).
DOGE Becomes 2nd Most Talked About Crypto
Dogecoin had an unbelievable week, with the price of DOGE surging +140% within a few days. This caused a storm on Twitter, as there were over 35,812 Tweets sent out in one day.
This gave DOGE the title of 2nd most talked about coin, accounting for 16.1% of all cryptocurrency related Tweets. To put that in perspective, there were more than double the amount of Tweets sent out about DOGE than there were about ETH.
Polkadot Surges to ATH
Polkadot, the cross-chain protocol for data and asset interoperability, has started to rise in popularity as of late. Binance recently introduced a $10M fund to support projects in the Polkadot ecosystem. This has caused the price of DOT to surge to a new all time high of $10.38. Additionally, the number of unique Twitter users discussing the asset on a single day has passed 1,000 for the first time ever.
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This Week's Podcast Episodes
Ep. 34 - Inflation as a Part of Life: Why Venezuela Needs Crypto with Mauricio Di Bartolomeo (Ledn)
Mauricio Di Bartolomeo (Co-Founder & Chief Strategy Officer of Ledn) joins The TIE's Fundamental Value Podcast to discuss crypto mining, why the USDC airdrop is so important to the people of Venezuela, building lending products for all, and the Latin American crypto market. Listen here
Ep. 35 - Systematic Crypto Arb Trading at Scale with Mitchell Dong (Pythagoras)
Mitchell Dong (CEO of Pythagoras Investments) joins The TIE's Fundamental Value Podcast to discuss building scalable systematic arbitrage strategies for crypto, the on-going inefficiencies of crypto derivatives markets, philanthropy, and running one of the largest quantitative funds in digital assets. Listen here