Daily Digest 9/27

Insight on the biggest news and charts that provide context for whats going on in the market today.

One of the bigger negatives surrounding BTC this year is that mining of cryptocurrencies is leaving a large carbon footprint.
This has led to mining companies having to move or being shut down if they do not make a change. Some miners have now started to make the switch over to nuclear power since the nuclear industry has the ability to generate clean energy.
Compass mining partnered with Oklo earlier this year by building “microreactors” to avoid having to build a full scale nuclear plant. Now Talen Energy in Pennsylvania has partnered with TeraWulf Inc to create “Nautilus Cryptomine”.
A report from Cambridge showed that only 39% of BTC mining is run on renewable energy.

Not too long ago some of the FUD forming around BTC price dips was the looming US Infrastructure Bill which was looking to strictly define what a crypto broker is and raises taxes on crypto gains.
In the last couple of weeks the Infrastructure bill was forgotten about because of other big news including last weeks Evergrande and China situation among others.
There is a lot of different FUD issues going on and it is causing investors to become sensitive to stories that could be considered bad news.
Fear and greed index is also signaling that the sentiment is fearful at the moment; however, BTC fundamental growth continues to grow through the lightning network with its sixth straight difficulty increase.

Bitfinex sent a $100,000 worth of Tether to its decentralized exchange wallet DeversiFi which cost them $23 million.
DeversiFi is doing an investigation to see what the issue is that caused this to happen and says that no investor funds will be affected since it is an internal issue.
They also used the EIP-1559 type transaction that was supposed to make the fees more predictable and not so expensive.

A quick look at the Open Interest we can see a correlation when price dips so does the open interest. The drops in open interest at price drop points is probably due to liquidations of options contracts when crypto takes an unexpected large price correction.

NFT art and gaming trading volume has been almost non existent all month across the top projects like Crypto Punks and Bored Ape Yacht Club.
While it is concerning that the sector as a whole has slowed down, it also seems that more and more projects are starting to be built on other networks like Cardano and Solana. If those projects start to take off with the general public NFTs could get another jump start.

Ethereum Alternatives Find Increased Activity in September