Nickel News Roundup - Week 47

News:

What happened: Bank of England leadership warns traditional banks they have to adjust to digital currencies, and praise potential for financial stability 

How is this significant?:

• Multiple key figures at England’s central bank have spoken favourably about digital currencies this week, indicating increased understanding of the benefits of this new asset class and possible shifts in national economic policy regarding them.
• Deputy governor Sir John Cunliffe stated it was “not the BoE’s job to protect banks’ businesses models. Banks will have to adjust” when it came to the potential impact of digital currencies, including CBDCs.
• BoE’s chief economist Andy Haldane recognised their potential to increase stability in terms of moving closer to a “narrow banking” model with a cleaner division between payments- and credit-related activities; “While the focus so far has been on the costs of this disruption – for funding and credit provision – weight needs also to be given to the potential longer-term benefits of such a structural shift”.

What happened: Major HNWI survey finds more millionaires own or plan to own crypto

How is this significant?:

• More millionaires than ever recognise the financial potential of crypto, moving it away from the domain of early adopter retail investors, and towards higher potential volume.
• The global survey by deVere Group found that by the end of 2022, 73% of HNWIs surveyed planned to own digital assets; up from 68% in 2019.
• According to deVere founder and CEO Nigel Green, “a major driver of the price surge is the growing interest being expressed by institutional investors”.

What happened: Dubai-based Investment Group will stake $10m in ETH2 launch

How is this significant?:

• With Ethereum (ETH) poised to upgrade towards ETH2, many individuals have already contributed towards the launch contract address, but Dubai-based investment firm IBC are the first to announce plans to do so at such a scale.
• Coins staked in the contract will be locked for years, demonstrating a long-term belief in the value of the new and improved chain.
• Ethereum’s move towards Proof of Stake consensus means anybody with 32 ETH can act as a validator node on the network, effectively earning interest on their staked ETH as a reward for securing the network. IBC’s level of investment equates to 687 validators when the upgraded chain launches.

Market Overview:

The positive momentum of the last few weeks continued across the market.

• Bitcoin’s appreciation accelerated further, closing on the highs of December 2017, most recently pricing at approximately $18,200. Some volatility was experienced earlier in the week, but dips were rapidly bought. Bitcoin has now reached an ATH in market cap, at $337bn.
• The CME group’s cash-settled Bitcoin futures hit $1bn in open interest for the first time.
• Ethereum had another strong week alongside BTC, crossing $500, making its highest levels since Q2 2018. At the time of writing, it remains above the long-term $490 resistance mark.
• The overall cryptocurrency market cap hit its highest level since January 2018, at over $510bn, around $50b above the previous week’s high.
• DeFi once again saw a new ATH of $14.0bn Total Value Locked on the 14th November, approximately $300m above the previous week’s high. At the time of writing, TVL has retraced slightly to $13.7bn.
• Nine of the top ten coins by market cap (excluding stablecoins) were green over the course of the last seven days.

Bullish news and bullish momentum continues as the market follows Bitcoin’s lead. Understanding of digital assets is increasing alongside institutional adoption. Now more than ever is the time to pay attention to the potential of cryptocurrency and blockchain.