Crypto expert thinks the Bitcoin bottom is in
MARKET SUMMARY
Over the last week, the stock market performance was weak, with the S&P 500 down -3.01% and Nasdaq down -2.75%. The market's decline can be attributed to investors' expectations that rising interest rates and inflation could continue to stifle global economic growth and increase the likelihood of a recession. It's a big week for US data as all eyes will be on the US CPI print (later today) and the US interest rate decision (Thursday). It is the belief that a lower-than-expected inflation print and slower interest rate raise could finally provide the boost many crypto prices need.
In the crypto market, former BitMEX CEO and crypto expert, Arthur Hayes, believes the worst is over with FTX-affected lenders and that the Bitcoin price has reached its bottom.
Building on Hayes’s view of investing at market bottoms, Goldman Sachs is reportedly looking to invest tens of millions of dollars in discounted crypto firms whose valuations have been hit as a result of FTX's demise.
Finally, Uniswap has successfully passed its community vote and agreed to proceed with its 'Fee Switch' pilot, which will allow UNI holders to share in the trading fees generated by the world's largest decentralised exchange.
With that in mind, let’s get to this week's top stories!
Crypto expert, Arthur Hayes, thinks the Bitcoin bottom is in
What’s the story??
Former BitMEX CEO and crypto expert, Arthur Hayes, believes the Bitcoin price has reached a bottom after most of the "irresponsible entities" have all run out of Bitcoin to sell.
What does this mean?
Hayes believes that the majority, if not all, of the Bitcoin held by FTX-affected centralised lending platforms has already been sold into the market.
Hayes explains in a memo this week that when centralised crypto lending firms face financial difficulties, they will often recall their loans first and then look to sell the collateral that underpins those loans - in the crypto market, that's Bitcoin.
Hayes further went on to explain that Bitcoin miners are nearing their maximum Bitcoin selling levels, a metric that has frequently coincided with Bitcoin price bottoms.
Why is this important?
While no one knows for certain, many crypto experts believe the Bitcoin bottom is closer than the general public believes.
Although history does not repeat itself, it does rhyme.
In bear markets, Bitcoin has averaged a -79.00% pullback before finding a level, consolidating, and resuming the next bull market.
How far off are we?
Bitcoin is currently down more than -78.00% from its November 2021 highs, implying that history, and Hayes, may be on the right track when stating that the bottom may be closer than we think.
If you believe the Bitcoin bottom is in sight, Revix offers you the ability to seamlessly invest in Bitcoin as a standalone investment or through one of our popular diversified Bundles, such as the Top 10 Bundle or Payments Bundle.
Goldman Sachs bets big on the crypto industry
What’s the story??
Following the demise of FTX, Goldman Sachs, one of the world's most prolific investment banks, is looking to invest heavily in the crypto space.
What does this mean?
Goldman Sachs is usually the first to seize an opportunity, and the crypto market appears to be no exception. According to reports, the investment bank is looking to invest tens of millions of dollars in discounted crypto firms whose valuations have been impacted by the collapse of FTX.
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According to Goldman's CEO, David Soloman, the investment bank sees value in blockchain technology and believes it can assist crypto firms in dealing with incoming regulator costs and requirements. He goes on to say that blockchain technology is an innovative technology that adds value in a variety of ways, such as tokenisation, peer-to-peer payments, and processing time efficiencies.
Goldman has been using blockchain technology to help improve the efficiency of its own workforce and is now looking to invest in valuable companies that they believe will drive the future of finance.
Why is this important?
When Goldman Sachs speaks, you should listen.
The notorious investment bank is well-known for its expertise in evaluating investment opportunities across all asset classes and companies. Despite the difficulties that cryptocurrencies have faced this year, Goldman Sachs still believes there is a great amount of value in blockchain technology and is betting big on its future as a disruptive technology.
In spite of the current economic environment, some of the most brilliant minds in finance are investing heavily in cryptocurrency.
That has to make you think... Perhaps this is an opportunity for you to invest as well?
Revix offers you a seamless way to gain exposure to the whole crypto market. Our flagship diversified Revix Top 10 Bundle, is similar to the JSE Top 40 or S&P 500 for crypto and provides equally weighted exposure to the top 10 cryptocurrencies making up more than 75% of the crypto market.
Uniswap's ‘Fee Switch’ proposal could drive the UNI price higher
What’s the story?
Uniswap has passed its community vote and agreed to proceed with its 'Fee Switch' pilot.
What does this mean??
In July, the Uniswap community was presented with a proposal to pilot a "Fee Switch" for a small set of Uniswap protocol pools. The vote was postponed until December 2022, but it has since been rescheduled, and the decision to proceed with the test pilot has been reached.
The ‘Fee Switch’ will ultimately allow for a small portion of Uniswap’s trading fees to accrue to the UNI token holders themselves. Instead of harming customers of Uniswap, the decentralised exchange decided it would not be increasing fees for the end users. Instead, Uniswap will keep 10.00% of what is currently paid out to liquidity providers. This proposed 10.00% will then be held in the Uniswap company treasury, with token holders voting on how these funds should be used. Direct payments to token holders, token buybacks, and growth investing are all possibilities.
Why is this important??
As the world's largest decentralised exchange, Uniswap has experienced explosive growth since the debacle with FTX. While there is some disagreement between CeFi and DeFi, the benefits of both are undeniable.
Uniswap’s "Fee Switch" is a critical step toward providing token holders with a share of the platform's profits. Not only will this increase interest in the UNI token, but it will also allow financial valuation metrics to be used to value the UNI token.
By using standard financial valuation metrics to value Uniswap, traditional investors could become more comfortable with the decentralised exchange and start to add it to their crypto investment thesis.?
Could this be the beginning of something significant for Uniswap and the world of decentralised finance?
If you believe this to be true Revix offers you the ability to seamlessly invest in Uniswap as a standalone investment or through two of our most popular diversified Bundles, the Revix Top 10 Bundle and the DeFi Bundle.
From the Revix news desk this week
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