Daily news update: January 14th, 2022

week 29, daily, news, TA

Crypto market update

Bitcoin has slowly become more correlated with equities making its narrative as an uncorrelated asset less appealing. Bitcoin has stalled after dropping to $39,000 last week, and meanwhile, other top ten cryptocurrencies Ethereum, Binance’s BNB, Solana, Cardano and XRP have also dropped back, erasing much of the gains they’d made this week.

Bitcoin (BTC) is now trading at 43,068 USD (all data from Coingecko.com)

Ethereum (ETH) is now for 3,310 USD

PlatonCoin (PLTC) is now for 0,393 USD

Total marketcap is currently at 2.177 trillion USD

Daily news update

Bitcoin and traditional market correlation: Current market psychology has created a correlation between traditional markets and the crypto markets when previously they were considered completely noncorrelated. Bitcoin and cryptocurrency’s initial purpose and ethos were to be a tool to circumvent the traditional economic system of fiat currencies and the type of economic intervention that occurs with central banks as mentioned above. Their entrance into the mainstream financial media and into the more average individual’s portfolio has slowly caused them to correlate more with traditional markets.

Bitcoin better than gold: CoinGecko released its annual report for last year. Bitcoin (BTC) performed better than gold, oil and other traditional assets. CoinGecko report indicates that Bitcoin managed to close 2021 with an increase of more than 60%. Among traditional assets, the one that experienced the best performance was oil, with an increase of 58%.During 2021 the S&P 500 registered an increase of 29%. The NASDAQ grew by 23% and the DXY (US dollar index) increased by 6%. In negative numbers are TLT (treasury bonds), and gold, both with -6%.

Musk, Tesla and Doge: Musk said that Tesla would soon accept payments in dogecoin for Tesla merchandise, just last month. Now he’s following through on that pledge; Dogecoin payments on Tesla’s online shop have gone live for select items. The price of Doge has risen more than 17% over a 24-hour period and are changing hands for around $0.199, the highest point since December 14, according to data from provider CoinGecko.

Fidelity and crypto for more states: In a recent report, Fidelity said that there was a high chance for more sovereign nation-states to acquire Bitcoin this year. According to the asset manager’s 2021 roundup, last year was marked with opposed developments when it comes to cryptocurrency adoption. And while it’s still too early to tell which path was more successful, the company said the high-stakes game theory at play will lead more countries to follow El Salvador and adopt cryptocurrencies.

Switzerland and digital franc: Bloomberg reports that Switzerland’s central bank, the Swiss National Bank, has completed the second phase of testing the digital franc. During a three-day test in December, five commercial banks implemented a wholesale version of the digital Franc into their existing business architecture. These were UBS, Citigroup, Credit Suisse, Goldman Sachs, and Hypothekarbank Lenzburg. Testing covered a wide range of digital currency transactions including interbank, monetary, and cross-border transfers.

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