Current Insights and Price Fluctuations in Cryptocurrency

This past week has seen the cryptocurrency market predominantly trending downward, leading to numerous losses of approximately 15% among the top 100 assets, save for a few that appear to be diverging from this overall downtrend.

Reflecting the grim market sentiment, lawmakers in South Dakota are proposing changes to the UCC that would effectively outlaw the use of cryptocurrencies. However, this amendment does not apply to Central Bank Digital Currencies (CBDCs), igniting backlash from the crypto community. In contrast, Bitcoin miner Riot Platforms, Inc. has announced a significant boost in output and a tripling of its hash rate throughout 2022. In a similar vein, Moscow Credit Bank, one of Russia's major financial institutions, has rolled out a blockchain-backed bank guarantee in Chinese Yuan, marking a first for the nation.

The Latest News

Riot Platforms Announces Surge in Bitcoin Production

Riot Platforms, Inc., a leading name in Bitcoin mining, has declared a revenue of $259.2 million for 2022, thanks to an increase in Bitcoin output alongside a full year of revenue from hosting services and engineering. Their total Bitcoin production reached 5,554 BTC, a notable 46% increase from the previous year. This upward trend has been attributed to their 'industry-leading financial strength' that positions them favorably to advance their 'aggressive growth initiatives'. They also reported a significant increase in their hash rate capacity, tripling it over the year.

Conversely, despite the rise in output, Riot's mining revenue has taken a hit. CEO Jason Les attributed this downturn to the falling valuation of BTC. Furthermore, due to a recent change in accounting practices regarding how BTC is represented on financial statements, Riot has indicated that its previous financial reports for 2020 and 2021 'should no longer be relied upon', with adjustments expected in the upcoming 10-K filing for 2022.

Building F: Riot's Bitcoin Mining Facility (Image Courtesy of Bloomberg)

Proposed UCC Amendment in South Dakota Targets Cryptocurrency

Mike Stevens, a Republican from South Dakota, has put forth a comprehensive 117-page amendment aimed at altering the Uniform Commercial Code (UCC) to redefine money, thereby excluding cryptocurrencies. This change, however, would still recognize CBDCs as 'money' under the new definitions. Stevens has characterized money simply as a 'medium of exchange recognized by a government', explicitly stating that this does not encompass electronic records created before governmental approval.

This proposed legislation starkly contrasts with the recent ‘CBDC Anti-Surveillance State Act’ introduced by Minnesota’s Republican Tom Emmer, a known supporter of cryptocurrency. In reaction to Stevens' move, various political figures and advocates from the crypto space have taken to social media to voice their objections to the U.S. government's apparent favoritism towards CBDCs while sidelining broader cryptocurrency usage.

Anti-Crypto Visual Representation (Image Courtesy of Asia Blockchain Review)

Pioneering Blockchain Bank Guarantee in Yuan by a Russian Institution

In a groundbreaking development, Moscow Credit Bank has launched a blockchain-based bank guarantee issued in Chinese yuan, a first in this capacity for Russia. The guarantee exceeds 100 million yuan (equivalent to around $114,600 at the time of reporting) and was executed via the Masterchain platform, Russia's national blockchain network facilitating digital transactions. This guarantee aims to provide financial protection for lending activities, but payments made under this guarantee will be in Russian rubles, based on a rate established by the involved parties, despite being denominated in yuan.

This move is part of Russia's growing interest in cross-border cryptocurrency usage as the central bank gears up for the pilot launch of its CBDC, expected to commence on April 1 of this year. The digital ruble initiative is anticipated to involve 13 local banks and multiple merchants nationwide.

Masterchain Branding (Image Courtesy of TAdviser)

Current Project Trends

According to CoinMarketCap analytics, the standout project for the week was one that focused on leveraging blockchain technology to tackle a variety of ongoing challenges across multiple networks. The asset, named Orient Walt, saw a remarkable increase of 113.28% in just one day, pushing its value to $0.017.

The Current BTC Trend

Weekly Bitcoin Price Insights (Data Courtesy of Cryptocurrencylistings.com)

Bitcoin continues to experience significant price fluctuations, having dropped below its 7-day Simple Moving Average (SMA), plummeting from the $24k range to a weekly low of $22,408.30, as recorded on various cryptocurrency exchanges. Cryptocurrencylistings.com Fortunately, BTC is starting to recover and inch back towards the $23k mark, trading at an average of around $22.5k over the week and concluding at this figure on the 2nd.

The current trajectory of BTC's price suggests it's gradually moving away from the critical $25k resistance, potentially paving the way for $24k to become its new weekly resistance level. This may imply that Bitcoin is heading for a further decline and likely correction , with trading expected to range between $22.8k and $23.5k . In this context, Bitcoin's Market Value to Realized Value (MVRV) started the week showing minimal growth, indicating a brief stagnation period. Nevertheless, towards the end of February, Bitcoin's MVRV spiked considerably, climbing from an average of 1.175 to a weekly peak of 1.18. This, however, is a noticeable drop compared to the previous week, which saw BTC's MVRV approaching 1.2, suggesting that Bitcoin’s valuation may once again be approaching undervalued territory. 5-Day BTC MVRV Overview (Data Courtesy of Blockchain.com)

The outlook remains cautiously optimistic, especially with the upcoming Ethereum Shanghai upgrade, which will allow Ethereum validators to gradually unlock their staked tokens along with any accrued yields. Additionally, Ethereum deposits to the Beacon Chain have seen a notable uptick since the beginning of 2023, which has extended into early March.

Here are some key statistics from the past week for your consideration:

The Situation of ETH Staking

As of the 2nd of March, the situation of Ethereum staking Moreover, there has been a marked increase in interest within the broader cryptocurrency and financial markets related to liquid derivatives. This has propelled the LDO governance token, tied to the liquid staking provider Lido, to rise by 33%, while its competitor, RPL (belonging to Rocket Pool), experienced an 18% increase. This trend likely stems from both tokens playing a vital role in reducing barriers for individuals looking to stake their Ethereum, allowing them to stake any amount of Ether assigned to a specific validator until the required Ether amount is achieved.

(Data Courtesy of Dune)

UAE Recognized as a 'Focus Country' Amid US Efforts to Isolate Russian Economic Links

Total validators: 512,657

Depositor Addresses: 90,200

Total ETH Deposited: 16,353,927

Liquid Staking Percentage: 35.38%

Staked Share Of ETH Supply: 14.49%

Recent developments have unveiled that the USA is increasingly targeting the UAE as a 'country of focus' in its efforts to tighten economic ties with Russia. Elizabeth Rosenberg, assistant Treasury secretary for terrorist financing and financial crimes, expressed concerns regarding the uptick in trade with Russia, particularly concerning goods that could be utilized in warfare, warning against those assisting sanctioned Russian entities. This declaration comes amid rising apprehensions in the West that the UAE, along with nations like Turkey, is becoming an essential economic lifeline for Russia as the conflict with Ukraine escalates.

The Current Macro Situation

Reports indicate that the UAE has been exporting goods, including items under U.S. export controls, such as 'semiconductor devices', which have composed around 30% of their total exports. The West perceives this as potentially benefiting the Russian military. Consequently, Washington's frustration with the UAE's commercial practices appears to be growing, prompting discussions of tighter regulations.

What’s Next for the Upcoming Week?

Given the prevailing negative sentiment in the market this week, it's likely that this trend will persist in the upcoming days. However, an underlying evaluation of many assets in the top 100 suggests a gradual upward movement on a three-month horizon, pointing to a long-term incline in market valuation.

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Recent Developments in Cryptocurrency and Price Fluctuation Analysis - Metaverse Post