Weekly News Wrap Up
Recession fears are pushing stocks and long-end US Treasury bond yields lower, reigniting interests in duration and fund inflows into fixed income assets. Turning to crypto, on-chain data indicate that whales and sharks have been accumulating ETH at current prices. Key holders (holding 100 to 1m ETH), who own two-thirds of total supply, have added another 2.1% or 561K ETH to their holdings collectively. Additionally, demand from institutional investors seems to be increasing as valuations remain depressed with interesting data points emerging (see more in “Cryptocurrency News”).
SPX -3.41% and NASDAQ -3.58% as Wall Street evaluated the odds of a recession and likelihood of a longer-than-expected hiking cycle from the Federal Reserve. USD recovered +0.66%., BTC -0.14% and ETH -1.20%, failing to break above $17,000 and $1,300 respectively..
Looking ahead, we have US Inflation Rate NOV and FOMC Dec this week as key data points to watch for.
- Vitalik Buterin: Focus on the tech, not the price. The Ethereum co-founder recommended weary crypto investors to shift away from price watching and focus on the technology instead. In response to a tweet from self-described crypto investor CoinMamba: “After 9 years in crypto I’m kinda exhausted. I want to move on and do something different with my life. Tired of all these scammers and fraudsters…”, Vitalik advised investors to learn more about the technology.
Our View: At Tokenomy, we share a similar long-term mindset when it comes to investing – not so much trading – and that the technology behind cryptocurrencies will eventually accrue towards capital gains.
- Avalanche partners with Alibaba Cloud in Asia, enabling developers to launch validator nodes on the Avalanche blockchain using the latter’s plug-and-play infrastructure services.
Our View: On the surface, the partnership might be positive for the ecosystem when high resource demands occur during peak traffic, but would caution against centralization risks as a single-point of failure might emerge.
- Interest from institutional investors in crypto continues despite FTX collapse. Data from crypto exchange Bitstamp shows that institutional registrations on the trading platform increased by 57% in November. Goldman Sachs also expressed its intent to purchase or invest in crypto companies with due diligence ongoing with current low valuations.
Our View: Behind the negative news related to FTX’s collapse, numerous soundbites related to institutional investors echo our comments on the value behind the underlying technology that has now become more attractive given valuations have pulled back.
- Another reminder on investment considerations: do not rush in investing but do it gradually, extend the time horizon of the investment and understand the security system where you invest.
- Our best strategy for the moment is to take at least 1-3 years in Moderate Portfolio because it has a good defense with 50% Fixed Deposit , 30% In DCD and 20% in Staking because we still have potential return in DCD and Staking especially in BTC.
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