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The Bitbuy Brief Issue #101 – Check Out Our Refreshed Look! HODL Waves Are Back

Photo of Author Bitbuy Staff
June 19, 2020
Bitbuy Staff
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Weekly Market Movement


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Weekly Summary: Crypto is marginally lower than 24H ago across the board. Most major coins have seen a modest 3-7% decline in the 7 day period. Spot volumes are an abysmal 30% of the 30-day average.

 


Big News Of The Week

The Percentage Of BTC Unmoved For Over A Year Has Reached Near All-Time Highs At 60.75% – The Previous High Occurred In January 2016

  • The percentage of BTC unmoved for a particular timeframe is sometimes referred to as HODL waves. The concept of HODL waves was introduced 2018 by Unchained Capital, a crypto-financial services company. Given the Bitcoin network’s design, the history of all transactions are accessible, allowing researchers to determine a coin’s age, i.e. ‘when it was last used in a transaction.’ On a basic level, the metric is interpreted as such: the higher the percentage of unmoved coins on the network and the longer the time period during which these coins haven’t been moved, the more likely these coins are held by ‘strong hands’ or those invested in the asset’s long-term potential.

Analysis: We are not surprised that the metric is near all-time-highs. Everything that has defined the ardent bitcoin investor’s world-view has come to fruition in the last several months in light of the Covid-19 crisis: highly interventive monetary policy, perceived governmental overreaches, etc. Arguably, bitcoin proponents have predicted such crises and their reluctance to either sell or move their coins makes sense, despite the magnitude of March’s sell-off. In this context, the metric arguably captures the solidarity of BTC’s incumbents. Of course, incremental buyers are also required for price appreciation. The metric, however, does further underscore the thesis that leverage and speculative positions were heavily washed out in the March sell-off.

Other Weekly Headlines

  • A third transfer of ETH has occurred with an exorbitant transaction fee, after the two such previous transfers were made from that same address. The third transaction, unlike previous ones, was transferring significant amounts of ETH, about $750k worth. However, the transaction fee of $544k is highly unusual.
    Full Story on CoinTelegraph
  • Wilshire Phoenix has filed documentation with the SEC seeking approval to launch a publicly traded bitcoin fund. Fidelity Digital would act as custodian for the Trust’s bitcoin, and USD would be held with UMB Bank.
    Full Story On The Block
  • Christopher Giancarlo, former chairman of the CFTC co-wrote, along with colleagues from the law firm which employs him, an article stating that XRP is not a security. The authors make several arguments regarding the position, including that the asset is ‘sufficiently decentralized to avoid regulation as a security.’ The law firm in question, Willkie Farr & Gallagher, is ‘counsel to Ripple on certain matters’ and Ripple provided information for the report.
    Full Story On IFLR
  • The World Economic Forum has included six crypto and blockchain businesses in its list of ‘Tech Pioneers’ for the year 2020. The businesses are: MakerDAO, Lightning Labs, Elliptic, Chainlink, Ripio, Veridium Labs
    Full List
  • WhatsApp has announced that its users in Brazil will be able to send money using the messaging platform. The new feature will be available to owners of Visa and Mastercard cards with several local banks. The feature will be free for its users while businesses receiving payments will pay a processing fee.
    Full announcement

LONG-READ OF THE WEEK

The State of Eth2, June 2020

  • Danny Ryan who works at the Ethereum Foundation, coordinating the work of all ETH 2.0 client teams to make sure development is in-synch, lays out the details of how Ethereum is moving towards ETH 2.0

 


 

Bitbuy Resources

Decentralized Finance (or DeFi) has been an emerging part of the crypto space in recent years.

Many hope that DeFi can fundamentally change the way the financial world operates, eliminating centralized authorities overseeing the way we use our money.

In this article, we break down the top DeFi protocols that have the change to shape the future.

Read the full story>>

Disclaimer: The opinions and analysis expressed in this newsletter are those of the writer, and not of Bitbuy. Nothing in this note should be considered investment advice.

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Photo of Author Bitbuy Staff
Bitbuy Staff
Bitbuy is a Canadian owned and operated digital currency platform. Trade on Bitbuy.ca or on the Bitbuy app today.
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