75th Edition

This week in The Flippening, TL;DR

• Bitcoin investors are cashing out short-term profits
• Ripple's representing crypto in the quest for regulations
• Silvergate's sticking with crypto through the highs and the lows

Top Highlights of the Week

1. Not just a one-trick pony

Recent on-chain data points toward Bitcoin gaining in the short term. And that has led to some profit booking from the participants who entered the market recently. The short-term profit-makers likely entered the market when Bitcoin was at a 5-month low of $15,599- the asset has seen an 8% uptrend since then. BTC's average true range climbed 43% between the 1st and 21st of November and has plummeted 64% since then.

Our takeaway: The OG cryptocurrency's got versatility- the market's currently treating it as a short-term trading asset for quick profits. But with the prices as low as they are right now, the long-term investors have set their eyes on the next Bitcoin halving, which is not too far away. Crypto market rally, anyone?

2. Ripple effect incoming?

Ripple's been battling it out in court with the SEC since the regulatory body filed a lawsuit against the crypto firm in December 2020. Ripple remains hopeful of an outcome in its favor. The company's CEO expects a decision in the first half of 2023- one that will resolve doubts surrounding crypto regulations in the U.S.

Our takeaway: A positive outcome for Ripple in this legal battle could dramatically change the crypto landscape- and for the better. The U.S. market could see clearer regulations, building trust around the asset class. May the force be with you, Ripple!

3. 'Til death do us part

Following the FTX collapse, Silvergate Capital had to sell $8.1 billion worth of assets at a steep loss to cover withdrawals. This move saw the crypto bank's shares take a plunge- 42%, to be precise. Regardless, the bank has stated its intent to remain committed to crypto and hold enough liquidity to survive the crypto winter.

Our takeaway: Collateral damage is the name of the game with the FTX collapse. But even among all the chaos in the industry, the big players continue to stick to their guns and back crypto. The fundamentals of blockchain technology have never been in question. Cryptocurrencies making a comeback is only a matter of when, not if.

• India's crypto tax rules have investors moving over $3.8 billion to foreign exchanges. Back to the drawing board for regulators?
• Indonesia announces plans for national crypto exchange in 2023. Small island nation, big waves.
• Ex-FTX CEO, Sam Bankman-Fried, pleads not guilty to all criminal charges. Twist in the tale?
• Coinbase and NYC regulators agree on $100 million settlement over compliance programs. Small price to pay for salvation.
  

Crypto simplified

“When winter comes, can spring be far behind?”

• P.B.Shelley, Ode to the West Wind

2022 was not the favorite year for a majority of crypto supporters. Although some might argue that we needed a valuation correction, it indeed was a roller-coaster year. As the famous poet P.B.Shelley, writes, after a period of downturn or decline (i.e., winter), a period of growth or recovery (i.e., spring) will inevitably follow.

Here are a few significant developments to look out for in 2023:

• ETH unlocking: The Beacon Chain, where a little shy of half a million validators has staked their ETH, will be unlocked during the second quarter of 2023. Since the London Hard Fork upgrade in August 2021, participants who wished to be validators of the Beacon Chain had to keep at least 32 ETH locked to become a validator. It will undoubtedly be one of the most important events of the crypto ecosystem in 2023.

• L2 airdrops: Talking about Ethereum, two of the largest Layer2 scaling solutions of Ethereum are expected to airdrop tokens to early adopters. The first is the Arbitrum network. The other is Optimism, which had reserved a large portion for future tranches of airdrops after its previous stint in 2022.

• Web3 social media: Although some players created quite a hype around Web3 social media, none of them have been able to capture significant eyeballs. 2023 could see a full-blown birth of Web3 socials. Some believe that it could bring a bull run similar to what the DeFi summer of 2019 brought.  

Crypto week in numbers

14: Bitcoin turned 14 years old this week. It has been a phenomenal journey for the crypto OG so far.

467: This is the total number of times Bitcoin has been declared dead over the years.

39.6%: Bitcoin dominance has stayed below 40 for the first week of 2023.

Disclaimer: All price movements are recorded up to 03:30 PM UTC, 06th Jan 2023

It has been a good week for most of the cryptocurrencies. Solana and Cardano remained the best performers among the top ones.

Disclaimer: All price movements are recorded up to 03:30 PM UTC, 06th Jan 2023

A good start of the year for all the sectors!

Coin of the week 💸

Algorand: $ALGO

Algorand has recently completed 1 billion transactions and that is no minor feat! We saw a rise in the number of holders, which also resulted in a 14% jump in the price of ALGO. It had remained under the grasp of bears throughout 2022. With trading volumes going higher, this token seems to have potential for a further rally.

Featured: Mudrex Coin Set 😎

There can be no better time to start a disciplined investment habit than at the beginning of a year. With the crypto markets slowly turning away the bears, it is be a good time to evaluate different sectors in the crypto ecosystem. At the same time, diversification is also essential.

With the growing popularity of smart contract applications, the sector is set to see an influx of smart money.

Smart Contract Platforms Coin Set by Mudrex invests across the top projects in the smart contracts ecosystem.

Click to invest in Smart Contract Platforms

If you liked this edition, please share it with your friends and other crypto curious folks

‍