GB Market Commentary 29/12/2021
by Adrian Kenny
The Christmas break saw Bitcoin dominance fall under 40% as the overall market sees a pullback on Tuesday after a relatively flat holiday weekend. Bitcoin failed to hold $52,000 after a short-term breakthrough on Monday and continued to slip below $49,500 Tuesday in a move that seemed to pull the broader market to a lower low. Whilst Bitcoin’s overall trading volumes were consistent, a total of 129,800 option contracts (with value of just over $6 billion) are set to expire on the 31st December which is believed to be fuelling overall wary sentiment for the short term. This is also indicated by the Fear and Greed index showing a sentiment of 27, a widely monitored indicator within the crypto space.
Ethereum has also had a few days attempting to maintain its important trading level of $4,000, ETH’s price dipped below this key position and consequently flipped it into a resistance level. However, it was simply not able to maintain above it by momentum alone coupled with a lower than average volume not helping the situation. The key area of support now sits at $3,738 and will likely be retested soon.
OpenDAO’s SOS Token Hits $250M Market Cap
In an un-refutable demonstration of how airdrops can quickly build a new community, a new token linked to purchases on OpenSea reached a peak market capitalization of over a quarter-billion dollars in just four days. $SOS token seems to have some unclear goals with multiple Ethereum developers raising concerns around potential exploits in the project’s code with a risk of a “rug” from the founding contributors, but this does not take away the Christmas day launched project's current market cap which now sits at $207 million.
Ferrari signed a multi-year partnership with a Swiss technology company to deliver non-fungible tokens (NFTs) for fans of the Italian super car giant. Velas Network AG is set to create NFTs and it will be the racing team’s first interaction with the digital asset industry, while some Formula 1 rivals have already made a move, this is a landmark moment as one of the most recognisable super cars on the planet enters the game. This is all hot on the news that the total trading volume of NFTs for 2021 peaked at over $23 billion, up from $100 million 12 months previously.