Ainslie Crypto Weekly Wrap-Up

Posted on 19/10/2023 | 696 Views

On-Chain Data

The following graph illustrates the relationship between Bitcoin's market cap and its realised cap. Historically, the market cap has only dipped below the realised cap during intense bear market downturns. Outside of these rare downturns, the market cap typically stays above the realised cap, indicating an overall unrealised gain for the market.

For six months in the latter half of 2022, the market cap was less than the realised cap. However, it bounced back and currently stands at $524B, while the realised cap is at $396B.

The realised cap tends to plateau, or draw down slightly during bear markets, as coins change hands and are revalued to lower acquisition prices. During this process, they gradually migrate towards longer-term investor wallets where they start to mature (remaining dormant for longer periods).

Digital Yen's Dual Dance: State vs. Private Sector

While the Bank of Japan (BOJ) maintains a cautious stance on the digital yen, the private sector is gearing up for a 2024 revelation. A consortium, boasting over seventy of Japan's premier institutions, is eagerly preparing for a yen-backed digital currency's launch. Orchestrated by DeCurret Holdings, the forthcoming DCJPY Network promises a seamless blend of digital finance with traditional banking frameworks.

On the other hand, trading giants like Mitsui & Co. are contemplating unveiling gold-anchored stablecoins. With experts predicting a prosperous future for DCJPY, the tug-of-war between state-backed digital assets and private ventures becomes even more compelling.

Rapid Fire Crypto News: Quick Glance

  • Regulation & Security: California jumps on the crypto train with a new licensing bill, and the SEC remains in the spotlight with Grayscale ETF applications.
  • Business Ventures: Ferrari flirts with crypto payments, and Mastercard wraps up a CBDC trial successfully.
  • DeFi & Web3 Updates: The EU takes a deeper look into DeFi risks, while the Web3 Foundation funds Polkadot development endeavours.

Market Pulse: Navigating Through the Waves

It's been a rollercoaster week for the global crypto market, with a cap surge of 2.3% to $1.09T. Bitcoin stole the limelight, thanks to CoinTelegraph's mistaken tweet about BlackRock's ETF application, whereas Ethereum traded more gently. Meanwhile, games like Roblox embraced XRP, and Solana continued its fiery performance, unfazed by setbacks. 

 

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