Bitcoin rose slightly just before press time to get to as high as $49k. The largest cryptocurrency by market capitalization remained bearish throughout the last 24 hours but it has inched slightly upwards at the eleventh hour. Altcoins on the other hand also rebounded strongly just before press time despite being largely bearish for most of the day. It remains to be seen whether or not the cryptocurrencies can sustain this considerable rise. 

In other news, Bitcoin retail buys have posted the highest numbers ever since March 2020. This shows that regular, small investors are looking to buy the cryptocurrency as they think that it is cheap enough. More on that later on. 

Elon Musk has stated that Dogecoin is a better alternative than Bitcoin for everyday payments. He made these comments during a recent interview with The Time magazine in which he was declared the 2021 Person of the Year. However, the markets didn’t respond to Musk’s comments again and both the cryptocurrencies have remained aloof from the Person of the Year’s comments. 

Witnesses have given a wide range of opinions around the growing stablecoin industry at a recent US congressional hearing. Some stated that the sector just needed more KYC/AML regulation to have further growth. Still others including regulatory hawks stated that stablecoins were a threat to financial stability and could undermine the role of the central banks. Senator Elizabeth Warren from Massachusetts sounded alarm about the sector’s ability in connection with Decentralized Finance (DeFi). She believes that their value will nosedive at some point, leaving a lot of average people with a lot less money. However, she provided no proof of her predictions.

Outgoing Twitter CEO Jack Dorsey’s crypto payments project Square (now rebranded as Block) has unveiled a feature to send Bitcoin as Christmas gift to loved ones around the world. According to the app, the process will be as easy as sending cash to them and you don’t even have to own Bitcoin or stock any other digital currency to make it happen. 

Bitcoin Rises Slightly to $49k

Bitcoin rose abruptly to get to $49k earlier today. The cryptocurrency is looking to make some recoveries on the back of strong on-chain and off-chain data but the recovery is not big enough to become a bonafide trend changer. 

The last 24 hours started with Bitcoin at around $46.8k. It remained there for a few hours till it started to rise slowly at midnight. It rose to $48.2k and then proceeded to trade sideways for much of the remaining day. At 1 PM in the afternoon, Bitcoin began to drop yet again. It reached a level of around $46.8k in a flash crash but recovered strongly from that at around 6 PM but then rose again, this time much stronger trend. It posted a 24 hour high of $49.2k just before press time in the process.

Going forward, Bitcoin is recording some really positive statistics at the moment. Long-term HODLing is nearing record highs despite the index being in the middle (or end) of a bull run and so on. Retail buyers are also at new highs since March 2020 which is a big deal as well. But, it hasn’t been able to translate these positive on-chain stats into a rise in BTC price index. The BTC price is currently under heavy bearish pressure and that is where it gets tricky. If Bitcoin can rise above $50k convincingly, it can rekindle the lost bullish flames but that will require a monumental change in thinking. 

The total market capitalization of Bitcoin was around $927 billion at press time and its share of the proceedings was 41.3%.

Altcoins Post Late Gains

Other cryptocurrencies aka altcoins remained bearish for most part of the day, but recorded sudden upticks near press time. Avalanche (AVAX, 30%) was the biggest appreciator of today, entering the top 10 cryptocurrencies by market capitalization for the first time. Other big gainers included Solana (SOL, 14%) and Polygon (MATIC, 16%). 

In Other News….

Bitcoin Retail Buying Highest Since March 2020

Bitcoin retail buying is currently at its highest levels ever since March 2020 when the index dropped massively to below $4k. 

According to Willy Woo, popular trader and commentator:

“The last time retail bought the dip this hard was at the bottom of the COVID crash.

Probably nothing, few, etc etc”

The statistics are very interesting as back in March 2020, the cryptocurrency was worth just $3.6k at its lowest point while right now, it is worth 12 times more. So, it is insightful to see that large numbers of smaller investors are looking to increase their reserves with their limited funds after a 32% drop from the all time high at $69k.

Are we in for a mega finish to 2021? It is too early to call that as the price is still heavily bearish. 

Bitcoin is currently trading flat at around $48.8k at press time. The largest cryptocurrency by market capitalization spent most of the time earlier today trying to break free from the slow burnout below $50k but was unsuccessful at least till press time. Altcoins on the other hand posted mixed results but largely remained steady. More on that later on.

In other news, in an important cryptocurrency exchange BitMart has announced that it is looking to reimburse users who were the victim of a recent cyber attack. The exchange was on the receiving end of a massive hack that left more users $200 million worth of tokens poorer. However, any compensation will be complex as a host of tokens were involved in the hack and the users will want different compensation schemes and may not agree with what is being offered. More on that later on.

The new pro-crypto Miami mayor has announced that in addition to taking a part of his salary in Bitcoin, he is now also looking to take a part of his 401k payout in crypto as well. Francis Suarez believes that it is his personal choice to do so in a recent interview with Real Vision. Suarez is a part of a new wave of pro-crypto mayors being elected into office across the United States. 

The top South African financial regulator is looking at plans to introduce a new framework to help protect vulnerable crypto investors in the country. If realized, this framework will be the first of its kind in the world and will mimic the kind of safety nets the stock market and other financial setups have for investors. However, any such plan will be tricky considering the sheer volatility of the sector.

The world’s largest museum is fully embracing Non Fungible Token (NFT) technology in its premises and is realizing its massive potential. According to the head of the contemporary art department at State Hermitage in St. Petersberg, Russia has revealed his vision for NFT art called Celestial Hermitage which is a digitized version of the iconic museum which is the largest in the world. The historic museum has over 3 million works of art exhibited within it and some of the finest collections anywhere in the world. Now, it aims to offer its first NFT collection titled Ethereal Aether which will be showcased in a digitized reconstruction of the museum itself. 

Binance is reportedly in talks to launch in Indonesia, the largest country in the South East Asian region. The exchange is looking to enter the country’s market in partnership with a bank called PT Bank Central Asia and the largest local telecom company PT Telkom Indonesia. 

Bitcoin Steady at $48.8k

Bitcoin tried and once again failed to come out of the current bearish abyss earlier today. The cryptocurrency is now stuck in a bearish level below the $50k resistance and that might result in further downward pressure.

The last 24 hours started with the cryptocurrency at around $48.1k. The Bitcoin price immediately started to come down and hit a 24-hour low of around $46.9k at one point. However, the move below proved to be a short-term event and it was soon back above $48k. It traded around $48.5k for a long while before it started to post a short upswing around 3:40 PM. However, that didn’t last long and maxed out at $49.2k. Now, at press time, Bitcoin has slipped below $49k again. 

Going forward, Bitcoin is now caught in dangerous bear territory for a while now. Any upside move is immediately cancelled. However, for now, the downward moves are also being actively cancelled out and therefore it is a stalemate. But, the bulls may not breathe a sigh of relief 

The total market capitalization of Bitcoin was around $917 billion at press time and its share of the proceedings was 41.4%.

Altcoins Remain Mixed

Other cryptocurrencies aka altcoins had a mixed day as well but most remained steady overall. Terra (LUNA, -7%), Solana (SOL, -3%) and Polygon (MATIC, -4%) were among the big loses while Polkadot (DOT, 6%), Litecoin (LTC, 2%), Chainlink (LINK, 2%) and Stellar (XLM, 2.5%) were among the gainers. Overall, the alts were also very quiet today.

In Other News….

BitMart Promises to Reimburse Users Who Got Funds Stolen

In a positive development, cryptocurrency exchange BitMart has announced that it is ready to compensate users whose funds were hacked from the platform. This is not going to be a small reimbursement as the exchange got hacked for over $200 million in cryptocurrencies including Binance Coin (BNB), SafeMoon (SAFEMOON), BSC-USD and BNBBPay (BPay) and a whole range of meme tokens. 

But, any reimbursement is going to be tricky for BitMart at least as the values of many of these tokens have fluctuated a lot ever since and as a result, they will have to compensate users accordingly, many of whom will want the better option. 

UNICEF or the United Nations International Children’s Emergency Fund has revealed plans to release Ethereum-based NFTs (non-fungible tokens) to celebrate its 75th birthday.

According to the United Nations agency, it expects to launch the digital pieces early next year. Nadieh Bremer, a digital artist, will design the digital artworks.

Proceeds from the NFT sale will finance various UNICEF-funded projects such as Giga, which targets connecting schools to the worldwide web or the internet. Giga was born in 2019 as a partnership between UNICEF and the United Nations International Telecommunication Union.

The project’s main aim is to connect every school globally to the internet and enable children to take advantage of internet-based informative materials, among other benefits.

The UNICEF Ethereum-based NFTs, known as the “Patchwork Kingdoms,” will be brought to life through a collaboration with Kite VC, Wondros, Snowcrash Labs, a non-fungible token marketplace, Metagood, and the Ethereum Foundation. The NFT collection will have 1,000 digital artworks.

The UN agency makes each NFT unique by imprinting each artwork with data gathered in learning institutions in over 20 countries.

There’s a World Above and a World Below

In a tweet, Giga noted that “each artwork […] is based on data from [their] open-source map. Collectors will form a community helping [them] connect every school to the internet.”

Explaining the structure of Patchwork Kingdoms’ artworks, Giga noted that every NFT will have a world “above” and a world “below.”

The world above will stand for “connected schools, and a world ‘below’” will represent “unconnected schools. The more schools have good connectivity, the more ornate and vibrant the [NFTs] become.”

While expressing their support for the projects, NFT collectors urged Giga to disclose the exact dates of the sale. A Twitter user commented on Giga’s post saying, “I need a date!” Another one asked, “When will the sale start?”

Notably, this is not the first time the UN agency is entering the world of blockchain technology. The agency already has a virtual currency fund that enables it to manage received virtual assets.

The cryptocurrency fund has attracted contributions from notable entities in the crypto world in the past. For example, earlier this year, a charity arm tied to the Huobi cryptocurrency exchange, Huobi Charity Limited, deposited seven Bitcoins to the UNICEF CryptoFund.

Top CryptoPunk Collector Pockets $10 Million and Exits Project

UNICEF has another fund called the Innovation Fund that supports blockchain projects with a positive impact on children globally.

As UNICEF unveils Patchwork Kingdoms NFTs, a top CryptoPunk collector has exited the project after pocketing 10 million US dollars from selling a single CryptoPunk NFT.

The pseudonymous holder of Punk4156, also associated with Nouns, a non-fungible project powered by the Ethereum blockchain, sold his pixelated artwork for 2,500 ETH valued at over 10 million USD at a price of $4,026 per coin at the time of writing.

The NFT collector noted that his exit is due to an uncertain future of the CryptoPunk project and wrangles from its creator, Larva Labs.

Despite the CryptoPunk project gaining widespread recognition this year, Larva Labs is conspicuously silent on Punk holders’ intellectual property (IP) rights.

As such, collectors have been unable to define the utility and the ethos governing their holdings, raising concerns about the commercial impact of CryptoPunks.

The discontent stems from Larva Labs’ failure to add extra features to their NFTs to reflect a changing NFT landscape. For example, popular non-fungible token projects such as Bored Ape Yacht Club (BAYC) allow Bored Ape NFT holders to lease their collection as brand ambassadors, among other commercial use cases.

Larva Labs Yet to Provide Punk-Usage Guidelines Four Years Down the Line

Some experts in IP law observe that although the CryptoPunk creator didn’t provide a guideline on how to interact with the Punks four years ago, such provisions are necessary in today’s NFT world.

Over the years, there have been several suggestions on tackling the licensing problem, but Larva Labs is yet to update its terms and conditions regarding CryptoPunks’ usage.

Apart from raising questions about whether Punk holders will exit the project, the $10 million price tag got the crypto community questioning whether the seller is also the buyer.

“What if the buyer is also the seller?” a Twitter user commented. Others saw it as a “landmark sale [that] will be written about in the NFT history books.”

The market sentiment in the blockchain ecosystem is still rather bearish. Bitcoin has been severely underperforming for a long time, and most people have already forgotten about the bullish $100,000 BTC price predictions for 2021. This has of course massively impacted the altcoin market as well, and many investors think that the alt season has been postponed for now. But even in this uncertain situation, there are projects that are doing well - so let’s take a look at some of the most important altcoin news from the last 7 days!

Can It Get Any Worse For Solana? SOL Price Keeps Falling Down Among Efficiency Concerns

For a long time, Solana claimed to be the “Ethereum killer” - a next generation blockchain which will supersede ETH and become the largest altcoin in the ecosystem. Today, it seems almost impossible - while Ethereum keeps doing well, SOL is having problem after problem.

Recently, the efficiency of the SOL blockchain has decreased massively. The users have reported that the Solana network is barely operational, with transactions taking much longer than expected.

Members of the Solana Foundation have suggested that the situation might have been caused by a DDoS attack. However, even after the situation was resolved, no statement about the supposed attack has been published officially.

This has caused some observers to believe that SOL’s problems might be much more serious than just hackers - in other words, it’s possible that the efficiency problems were simply caused by a huge number of legitimate transactions. This would mean that Solana is much less efficient and has a lot smaller maximum throughput than previously assumed.

The market has reacted to Solana’s problems as expected - the SOL price has dramatically decreased by almost 22% over the past week. Although the transaction times on the Solana blockchain have been restored back to normal for now, it’s likely that it’s not the end of troubles for SOL.

Mongooses and Hamsters - In the Crazy World of Meme Tokens, Anything Can Pump

Few weeks back, all crypto news websites in the world reported the story of the Squid Game token - a scam cryptocurrency hastily released to cash in on the popularity of the famous Netflix show. After the SQUID token’s price skyrocketed almost instantly, the rug was pulled, leaving naive investors with nothing.

It seems that nowadays, all it takes for a token to pump is a single mention in the media. On Wednesday, US Congressman Brad Sherman has jokingly mentioned “hamster coin”, “mongoose coin” and “cobra coin” in a hearing at the US House of Representatives. Quite unsurprisingly for anyone who has been tracking the meme token ecosystem, the market has reacted enthusiastically.

The price of a previously unknown token Hamster (HAM) has immediately erupted by over 60%. Meanwhile, someone has hastily created and launched Mongoose Coin (GOOSE), which has also quickly started to grow.

It’s almost certain that nobody but the creators of these meme cryptocurrencies ever make any money of them - meanwhile, many blockchain investors are becoming concerned that blatant pump and dump meme tokens make the entire crypto ecosystem look bad, and they can provide the government with an excuse to curb down on crypto.

Ethereum Is Outperforming Bitcoin - Is the Great Flippening Really Possible?

Most blockchain investors still consider the possibility that ETH will surpass BTC and become the largest cryptocurrency in the world, nothing more but a fantasy. However, the recently published data doesn’t lie - Ethereum has been outperforming Bitcoin for the past year, and if the current trend continues, ETH will inevitably become the most valuable crypto on the market sooner or later.

According to the data published by Cointelegraph, ETH has outperformed BTC by over 230% over the course of 2021, and the ETH/BTC ratio has never been higher than it is now. In other words, investors who bought ETH one year ago made much greater gains than people who purchased BTC at the same time.

Furthemore, other metrics seem to also favor Ethereum over Bitcoin. For example, the number of traders who have been shorting BTC keeps increasing - meanwhile, most traders still prefer to long ETH.

In general, Ethereum investors are much more bullish than Bitcoin holders. But is it really possible for ETH to surpass Bitcoin? We might find out in the near future.

Stablecoin Problems Spread to Other Countries

Stablecoins are considered by many experts to be the Achilles’ heel of the blockchain ecosystem. Unregulated, unaudited, centralized stablecoin issuers have essentially become the central banks of the crypto market, and they are printing digital assets at an alarming rate, which might prove to be catastrophic to the crypto sphere.

It seems like the US government is not the only one concerned with the danger of stablecoins. After the US regulators decided to take a closer look at how stablecoins issuers such as Tether operate, the Japanese Financial Services Agency has also announced that it will aim to regulate stablecoins in 2022.

According to estimates, up to 70% of Bitcoin’s market cap might be attributed to stablecoins such as USDT. Soon, we’ll be likely to find out what will happen to the crypto ecosystem when the stablecoin money printers are turned off.