GB Market Commentary 22/12/2021
by Marcus Sotiriou
Bitcoin has managed to hold above $49k after yesterday’s impressive rally as the S&P 500 (which Bitcoin has correlated with in recent weeks) also strongly bounced back. Some altcoins have had incredible moves since the lows on Monday, particularly LUNA as mentioned yesterday as well as CRV (Curve) – both seeing gains of over 30% in the past two days. On-chain metrics continue to be bullish as the unspent miner supply closes in on all-time-highs. These are the coins that are issued to miners as a reward for solving a block but have never been spent on-chain. This shows the sentiment of miners and, by holding their mined Bitcoin, this suggests that they anticipate significant price rise in the short to mid-term. Confluent with other factors like adoption accelerating and leverage being wiped out of the market I would agree with this perspective.
Visa has become more involved in the crypto space as it has now partnered with 60 crypto platforms so that consumers will be able to spend crypto at 80 million merchants worldwide. Visa’s head of crypto revealed, ““At Visa, the scale and scope of our work in crypto has grown dramatically. The number of people cross-functionally at Visa working on crypto in some capacity is now in the hundreds — up from just a handful of employees.” Visa will be launching crypto-linked cards to allow consumers to spend digital assets without requiring the merchant to accept crypto. Visa connecting the crypto industry to 80 million merchants and more than 15,000 financial institutions is a great step towards mainstream adoption. Crypto being incorporated into the network effects of giants like Visa is how I think the crypto industry will onboard billions of users over the next decade and hence avoid a multiyear bear market as seen in previous cycles.