Daily Digest 12/6
Insight on the biggest stories of the day.
Part of the overall crypto and stock market corrections was due to the news that Evergrande was not looking good on repaying its billions of dollars in debt. To combat this the Peoples Bank of China has reduced its reserve ratio requirement by 0.5% for financial institutions.
Major stocks in China such as Alibaba dropped 8% on the announcement as well as Tencent was down 3.2%. The Evergrande situation it self is enough to crash every market but we also have the newest covid variant spreading more fears in the market.
For now western stocks have seen a slight price increase amid this news but Bitcoin did drop during China market hours. This printing may lead more people to crypto if inflation takes over as we are currently seeing in the US.
Grayscale finds that over 25% of US households surveyed currently own Bitcoin
Grayscale is one of the largest digital asset managers on the traditional market. On Grayscale you can invest in a trust of a variety of cryptocurrencies like BTC, ETH, and SOL.
On Monday Grayscale released a report that showed 26% of US investors surveyed already own BTC. 44% of those people also reported owning ETH. The survey was conducted off 1,000 people between 25 and 64.
The most important number to come out of this report was that more and more people are leaving financial advisors and doing it them selves. Financial advisors for crypto exposure fell from 30% in 2020 to 11% this year. As crypto continues to grow and people continue to educate themselves on finances they will realize there is no need for someone else to manage their money or hold it but themselves.
Cardano Primed For Ultimate Price Pop As Highly Anticipated DEX Public Testnet Goes Live
Cardano recently released the ability to utilize smart contracts on its blockchain. This opened the door for developers to build Dapps leveraging the Cardano blockchain.
So far a lot of developers have been working on CNFTs or Cardano NFTs as a low fee alternative to ETH. Yesterday they announced the launch of the public test net for SundaeSwap which will be the first AMM or decentralized exchange on Cardano similar to Uniswap on ETH.
This has been highly anticipated as it will allow users to swap Cardano native tokens and advance defi within their ecosystem.In true Cardano fashion they did miss their original release date due to bugs but they did get it going by the next day.
IOHK believes heavily in peer reviewing and stress testing to get a better sense of how its running and what needs improvement. The team has said to expect these bugs and congestions for this reason as they monitor and analyze the network.
Looking at the 7D supply on exchange metrics everything but ETH has been flowing onto exchanges. Usually this means that people are looking to sell as they move from cold storage to exchanges.
The large increase in USDT and USDC going onto exchanges could mean the opposite of that. With a large inflow of stablecoins this could be an indicator of preserving gains while the market was tanking and positioning to buy at the bottom.
The fact that ETH is still being moved off exchanges is a key factor for the price holding strong at $4,000 even as everything around it continued to fall. This shows that people are buying ETH with conviction.