News recap: Brazil legalises bitcoin as a payment method

Crypto market in numbers

Between 22nd and 28th December 2022, the crypto market capitalisation gained a foothold above the $800 billion mark. By the end of the month, it fell to $790 billion, according to CoinMarketCap. However, already at the start of the new year, the indicator returned to the $818-$823 billion range. The sideways movement of the market continues.

Trading activity remained low. The average daily trading volumes did not exceed the $36 billion mark and even dropped to as low as $17 billion during the first few days of the new year.

The Cryptocurrency Fear & Greed Index remained in the “Fear” zone all this time. The indicator has been fluctuating between 25-29 points since the end of November 2022. Last time around, a similar situation was observed in April-May 2022.

Selling pressure on altcoins has eased slightly. BTC dominance failed to gain a foothold above 42%, according to TradingView. The indicator fell by 2% and stood at around 41.5%. As a result, altcoins showed local growth.

Crypto volatility continues to decline. Since 22nd December 2022, bitcoin’s 30-day volatility index has fallen by 23%, from 1.47% to 1.13%. The same indicator for ETH decreased by 27.4%, from 2.48% on 22nd December 2022 to 1.80% on 05th January 2023.

Gainers (30th December 2022 – 05th January 2023)

Losers (30th December 2022 – 05th January 2023)

Most traded coins (30th December 2022 – 05th January 2023)

Top crypto market driving factors

Overall crypto market

▲ 22.12.2022 – The Brazilian president has finally passed a law that recognises Bitcoin as an accepted, legalised payment method in the country.

▼ 22.12.2022 – According to Deutsche Bank, in 2023, one should expect a stronger drop in the U.S. GDP rather than the market consensus.

▲ 23.12.2022 – Reuters: U.S. bitcoin miner, Core Scientific, has received court approval to access a $37.5 million loan from existing creditors to solve its liquidity issues.

▼ 27.12.2022 – British bitcoin mining firm, Argo Blockchain, suspended trading of its American depositary shares on Nasdaq due to an announcement scheduled for 28th December 2022.

▼ 30.12.2022 – Fortune: investments in the crypto industry decreased by $5 billion over the year.

▼ 31.12.2022 – The Italian parliament has introduced a 26% capital tax for cryptocurrency gains as part of its 2023 budget law.

▲ 04.01.2023 – Investment giant, BlackRock, has committed $17 million to bankrupt bitcoin miner, Core Scientific.

▼ 04.01.2023 – Coinshares: digital-asset funds saw inflows totaling $433 million during 2022, the lowest level since 2018.

Bitcoin (BTC)

▼ 24.12.2022 – Bitcoin mining hashrate plunged by about 32%, from 229 EH/s to 156 EH/s, amid America’s big winter storm that caused many miners to shut down.

▼ 27.12.2022 – According to Intotheblock, the number of new addresses created on the Bitcoin network decreased by 8.16% over the past seven days.

▼ 28.12.2022 – Tom Dunleavy, a senior research analyst at Messari, revealed that miners have sold off almost all of their mined Bitcoin throughout 2022, putting downward pressure on BTC’s price.

▲ 28.12.2022 – Michael Saylor: MicroStrategy has increased its bitcoin holdings by 2,500 BTC. The company now holds 132,500 BTC, acquired for about $4.03 billion at an average price of $30,397 per bitcoin.

▲ 29.12.2022 – MicroStrategy is set to launch a number of software apps and solutions powered by the Bitcoin Lightning Network in 2023.

▲ 29.12.2022 – Capriole Investments: Bitcoin will outperform all other assets in 2023.

▲ 29.12.2022 – Ryan Selkis, Messari CEO and founder: both fundamental and technical analysis point to the growth of BTC in the medium term.

▼ 30.12.2022 – According to QCP Capital, weak activity is a bearish signal for BTC. At the beginning of 2023, another strong drop in bitcoin is expected, as capital will go into US government bonds.

▼ 03.01.2023 – Glassnode: the number of addresses holding more than 1,000 BTC hit a three-year low of 2,031.

▲ 04.01.2023 – Bernstein analysts think that now is the perfect time to buy bitcoin and predict that Bitcoin and other cryptocurrencies could reach new heights.

▲ 04.01.2023 – BTC addresses holding between 0.1 BTC and 100 BTC have been in one of their most aggressive accumulation cycles in history, adding 9% to their holdings in just the past six months.

Ethereum (ETH)

▼ 25.12.2022 – Most staked ETH are handled by only four providers.

▼ 29.12.2022 – Ethereum whales sold around 1 million ETH in December 2022, causing the coin’s price to drop.

▲ 30.12.2022 – Ultra Sound Money: Ethereum’s inflation rate has decreased by 99.6%, to 0.014% per annum, after its transition to a Proof of Stake consensus algorithm.

▲ 02.01.2023 – Over 2.2 million domains were registered on the Ethereum Name Service (ENS) in 2022.

Dogecoin (DOGE)

▲ 22.12.2022 – Elon Musk stated his willingness to talk to the DOGE army via Twitter live on a date closer to Christmas.

▼ 29.12.2022 – Dogecoin core developer revealed that the meme coin has no plans to move to Proof of Stake, contrary to the opinions of some influencers.

▲ 03.01.2023 – The Dogecoin Foundation has allocated five million DOGE to the development of the ecosystem.

Cardano (ADA)

▲ 27.12.2022 – Cardano leads in terms of development activity over the past 30 days.

▲ 28.12.2022 – Santiment: wallets holding between 10,000 and 100,000 ADA have been actively accumulating ADA over the past six weeks, increasing their collective holdings by over 10%.

Litecoin (LTC)

▲ 04.01.2023 – Santiment: wallets holding at least 1000 LTC have been actively accumulating Litecoin since the summer of 2022.

Solana (SOL)

▼ 28.12.2022 – Santiment: traders do not believe in the success of SOL amid revelations of fake network activity.

▼ 28.12.2022 – Solana’s TVL (total value locked) fell from an ATH of $10 billion more than a year ago to just $213 million.

▲ 04.01.2023 – The number of daily wallets on the Solana DEX continues to grow.

Toncoin (TON)

▲ 22.12.2022 – The TON Diamonds NFT marketplace completed two record-high auctions. Two non-fungible tokens from the Annihilation collection – Hida and Pearly stones – were sold for 10,000 TON and 9,860 TON, respectively.

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