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Welcome to the second edition of MRP's Weekly Crypto Wrap, a look back at news reports,
on-chain metrics, and other data that moved digital asset markets over the past week. These reports will be delivered every Friday morning and are packed with useful information for those just beginning their research into Bitcoin and other cryptocurrencies, as well as investors with more experience in digital asset markets.
Click here to see our intro to on-chain analytics and everything else we covered in last week's iteration of the newsletter. |
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THEMATIC SIGNALS
Aggregation of key events and breaking stories monitored by MRP |
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GBTC: Morgan Stanley Plans on Purchasing More Bitcoin in 2022, Data Analysis |
Citadel: A Legendary Billionaire Just Flipped On Crypto — And Revealed A Huge Price Bombshell Is Headed Toward Bitcoin And Ethereum |
Emerging Markets: 75% of investors in emerging markets want more crypto: survey |
Miners: Marathon Digital’s Q4 Revenue Rises 17% From Q3, but Misses Estimates Slightly |
Russia: Energy-Rich Russia May Turn to Bitcoin Mining to Dent Sanctions |
Switzerland: Lugano, Switzerland Will Make Bitcoin Legal Tender |
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ON-CHAIN ANALYTICS
Breaking down the most critical trends and transaction patterns on the blockchain |
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As we noted last week, Glassnode data showed that the percentage of BTC supply last active more than one year ago reached a 14-month high of nearly 62%. A larger share of Bitcoin's already scarce supply (hard capped at 21 million BTC) becoming increasingly illiquid over time indicates a long-term accumulation pattern among "strong hands" - those less concerned with short-term volatility. That trend continued increasing throughout the last week as the amount of supply last active 3-5 years ago broke out to a 4-year high.
New entrants and accumulation activity were also strong this week as Bitcoin (BTC) and Ethereum (ETH) each recorded new all-time highs in non-zero addresses and addresses holding 0.1+ coins. The number of addresses holding 1+ BTC reached a 10-month high and addressed holding 10+ coins made a new one-month high. Each address can be thought of as a sort of digital wallet, where Bitcoin can be sent or received. A Bitcoin address receives Bitcoin in a similar way that an email address receives emails. Bitcoin addresses can even receive text and messages within a BTC transaction. A single user of the Bitcoin network can have multiple addresses. Some custodial products will even generate brand new addresses every time a user wants to receive or send a transaction.
At the time of this writing, Bitcoin is trading at about $41,600, up from $39,100 a week prior, touching a weekly high of just over $45,000 on Wednesday. That same day, we published our most recent Daily Intelligence Briefing (DIBs) on the crypto market, Bitcoin’s Neutrality Provides Utility to Both Sides of Russia-Ukraine Conflict. Since we released that report, highlighting the role Bitcoin and cryptocurrencies could play in the ongoing conflict in Ukraine, donations to official Ukrainian government crypto addresses and Come Back Alive (an NGO providing support to the military) have surged from $33.8 million to $54.7 million, according to new data from blockchain analytics firm Elliptic.
Our coverage of on-chain data will expand and become more complex over time, but setting the groundwork and contextualizing exactly what these metrics represent is critical. You can read more about recent on-chain trends in our recent DIBs report, Bitcoin Bogged Down by Rate Hike Prospects, But Silver Linings Prevalent in On-Chain Data and Miner Activity. |
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DIGITAL ASSET DIBs MRP's latest Daily Intelligence Briefings on everything from BTC to DeFi and NFTs |
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THEMATIC SIGNALS: SUMMARIES |
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GBTC Morgan Stanley Plans on Purchasing More Bitcoin in 2022, Data Analysis
Back in 2021, Morgan Stanley purchased millions of shares in the Grayscale Bitcoin Trust (GBTC). According to data analysis from the MacroScope Twitter account, Morgan Stanley's Growth Portfolio reported owning 4.29 million shares at the end of last year. According to numerous forms and filings on the SEC website, that number should increase throughout 2022.
Read the full article from U°Today + |
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Citadel A Legendary Billionaire Just Flipped On Crypto — And Revealed A Huge Price Bombshell Is Headed Toward Bitcoin And Ethereum
Ken Griffin, the legendary hedge fund billionaire and founder of market-maker Citadel Securities, has changed his tune on cryptocurrencies, revealing that "over the months to come" Citadel will likely "engage in making markets in cryptocurrencies."
"I still have my skepticism, but there are hundreds and millions of people in this world today who disagree with that," Griffin said. "To the extent that we're trying to help institutions and investors solve their portfolio allocation problems, we have to give serious consideration to being a market maker in crypto."
Read the full article from Forbes + |
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Emerging Markets 75% of investors in emerging markets want more crypto: survey
Researchers from consumer sentiments firm Toluna surveyed 9,000 people from 17 countries to complete a February report which found 75% of investors in Asia-Pacific and Latin American emerging markets are looking to increase their exposure to cryptocurrency investments.
Emerging markets appear to be the most lucrative markets for growth in the cryptocurrency industry, as 32% of consumers surveyed have trust in cryptocurrency compared with just 14% in developed markets such as the United States and the European Union.
Read the full article from CoinTelegraph + |
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Miners Marathon Digital’s Q4 Revenue Rises 17% From Q3, but Misses Estimates Slightly
Marathon Digital (MARA), one of the largest publicly traded bitcoin miners in North America, reported Q4 revenue of $60.3 million, an increase of 17% QoQ but slightly below analysts' average estimate of $60.9 million, according to FactSet. However, Adjusted earnings came in at $0.36 per share, beating analysts' estimate of $0.35.
The miner produced 1,098 self-mined BTC in the fourth quarter, down about 12% from 1,252 BTC generated in the previous quarter but up about 600% YoY.
Read the full article from CoinDesk + |
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Russia Energy-Rich Russia May Turn to Bitcoin Mining to Dent Sanctions
About 4.5% of Bitcoin mining took place in Iran in the last year, potentially generating $1 billion for the government, David Carlisle, director of Policy and Regulatory Affairs at blockchain analytics firm Elliptic, said.
Russia’s President Vladmir Putin has backed crypto mining, despite the Bank of Russia’s proposal to ban mining and trading. Belarus said in January it would continue its liberal crypto rules.
Read the full article from Bloomberg + |
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Switzerland
Lugano, Switzerland Will Make Bitcoin Legal Tender
The city of Lugano, Switzerland, will make bitcoin legal tender and allow citizens to pay for public service fees or taxes in bitcoin. “Plan ₿” is a city initiative worked in collaboration with stablecoin issuer Tether to attract wealth, smart minds, and opportunities. Tether’s stablecoin USDT will also become a legal tender in the city.
Plan ₿ also provisions the creation of two investment funds. The first will allocate up to $3.26 million to foster the adoption of Bitcoin, USDT, and LVGA, the city’s stablecoin worth one-hundredth of a Swiss franc which will also be legal tender in Lugano.
Read the full article from Bitcoin Magazine + |
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ABOUT THE DIBS AND MCALINDEN RESEARCH PARTNERS
McAlinden Research Partners (MRP) publishes daily and other periodic reports on the economy and the markets.
MRP focuses on identifying change in the global economy and offering an investment thesis whenever an opportunity arises that has not yet been recognized by the market. The DIBs are MRP's compilation of articles and data from multiple sources on subjects reflecting change that have potential investment implications for an industry or group of securities. We share these with our clients who may already have or may be considering exposure in the industries affected. The subjects change daily and constitute an excellent update on featured topics. |
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The information provided in this Report is not to be reproduced or distributed to any other persons. This report has been prepared solely for informational purposes and is not an offer to buy/sell/endorse or a solicitation of an offer to buy/sell/endorse Interests or any other security or instrument or to participate in any trading or investment strategy. No representation or warranty (express or implied) is made or can be given with respect to the sequence, accuracy, completeness, or timeliness of the information in this Report. Unless otherwise noted, all information is sourced from public data.
McAlinden Research Partners is a division of Catalpa Capital Advisors, LLC (CCA), a Registered Investment Advisor. References to specific securities, asset classes and financial markets discussed herein are for illustrative purposes only and should not be interpreted as recommendations to purchase or sell such securities. CCA, MRP, employees and direct affiliates of the firm may or may not own any of the securities mentioned in the report at the time of publication. |
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