GB Weekend Market Commentary 20/11/2021
by Nick Heale
Welcome to the latest instalment of the weekend CryptoInsight.
Two weeks is a long time in crypto! The market is presently going through a correction which many who have been in the industry a long time will call healthy, but it can be unsettling for those that are new to the market.
In the past week the Bitcoin price has fallen 11% at the time of writing but it was $29,600 in July. If we consider the level at $57,900 now, it shows the importance of zooming out in these situations.
It remains to be seen whether the market corrects further but what’s interesting is the crypto industry is evolving in so many ways and contains categories which have performed strongly despite Bitcoin’slacklustre week. Traditionally all “altcoins” follow Bitcoin’s lead, but it will be fascinating to see if this correlation will become less evident as the crypto markets matures.
How is it possible to check an altcoins correlation versus Bitcoin? You can check prices on a website likeCoinMarketCap versus Bitcoin as the currency (rather than the default USD). If we do this, we can see that Metaverse coins, such as MANA which was covered in the last article, have performed very well versus Bitcoin, and have risen in value despite Bitcoin’s fall. This can therefore be a powerful tool to establish which coins outperforming and what part of the crypto ecosphere is worth some focus.
In the NFT world this week, what’s been interesting is the rise of blue chip NFTs which had been falling in value recently. The price of the cheapest ape in the Bored Ape Yacht club collection is now at 52 ETHas the brand looks to leapfrog Cryptopunks as the number 1 online avatar flex.
If we combine NFT and Metaverse themes, Sotheby’s, after their successful sale of a set of Bored Apesfor $24.4mm, recently held an auction at their Decentraland headquarters. On land they purchased as an NFC, they held an auction for the street artist Banksy where bidders could pay in ETH cryptocurrency. Now your online avatar can attend an auction “in person” in a virtual world no matter where you are physically based.
As a closing thought, it will be interesting to see how buying land in the metaverse develops, perhaps a nice plot next to the Embassy of Barbados who have recently secured their digital real estate in the metaverse.
In this particular case perhaps being there in person is better!
Have a good weekend.