End of the Transitory PlatoBlockchain Data Intelligence. Vertical Search. Ai.

End of the Transitory


End of the Transitory PlatoBlockchain Data Intelligence. Vertical Search. Ai.

December Market Outlook

It is not going away.

Last week Fed Chairman Jerome Powell requested that the central bank’s preferred descriptor for the worst price inflation in 40 years (“transitory”) be “retired” from use.

Powell basically admitted that:

a) he was wrong (not always an easy thing to do when you’re the world’s most powerful person)

b) he now agreed with his early critics on this particular topic that inflation will be with us for the foreseeable future

Now, to be clear, heightened inflation (a debatable term) will likely one day “go away”, at least in the United States.

The last period of outsized US inflation started in the 1960s and lasted until the early 1980s, so these episodes can last a decade or more even in the land of the almighty dollar. But they do typically subside.

Powell’s capitulation reminded us of another thing that many of the powers that be have come to recognize is not going away.

Bitcoin.

For many years now we have expressed a view, backed-up by extensive empirical research, that bitcoin/crypto/web 3 are not a passing fad.

And regulators in the jurisdiction that still matters the most — the United States — have been echoing this sentiment since at least as far back as 2018, long before Chairman Gensler and Powell did a few months ago.

Now, there are still some holdouts that can be found atop the greying financial system food chain and in the bowels of academia.

But the smart money, innovators and most powerful regulators all generally recognize that crypto is also non-transitory.

As one of our Blockchain.com teammates recently mentioned, it feels great to work in an industry that is at last widely recognized as a legitimate fixture on the innovation landscape. Not a bad note to end another historic year on.

Summary:

  1. Market Movements
  • For November cryptoasset markets diverged slightly with Bitcoin (BTC) down -7% and Ethereum (ETH) up 8%
  • On this month’s monthly webinar we discuss the current cryptoasset price action and 2022 outlook with Blockckchain.com Head of Markets Charlie McGarraugh

2. On-Chain Insights

  • On a monthly basis, overall bitcoin on-chain activity continued increasing in the month of November
  • Bitcoin’s hash rate (network security) has rebounded to pre-China May crackdown levels

3. What we’re reading, hearing, and watching

  • Explore the latest on crypto and beyond from The New York Times, Bloomberg, Bitcoin Magazine, and more

1. Market Movements

For November cryptoasset markets diverged slightly with Bitcoin (BTC) down -7% and Ethereum (ETH) up 8% (Table 1).

Table 1: Price Performance: Bitcoin, Ethereum, Gold, US Equities, USD, Long-dated US Treasuries

End of the Transitory PlatoBlockchain Data Intelligence. Vertical Search. Ai.

2. On-Chain Insights

On a monthly basis, overall bitcoin on-chain activity continued increasing in the month of November (Table 2).

Table 2: November vs October bitcoin on-chain network activity

End of the Transitory PlatoBlockchain Data Intelligence. Vertical Search. Ai.

While the estimated hash rate has gained an impressive 8% this month, the average daily active addresses have remained fairly stagnant with a -0.04% drop. Notably, the average daily fees per transaction have dropped from $3.21 per transaction in October to $2.96 per transaction in November.

3. What we’re reading, hearing, and watching

Crypto

Beyond Crypto

Important note

The research provided herein is for your general information and use and is not intended to address your particular requirements.

In particular, the information does not constitute any form of advice or recommendation by Blockchain.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

Appropriate independent advice should be obtained before making any such decision.

End of the Transitory PlatoBlockchain Data Intelligence. Vertical Search. Ai.


End of the Transitory was originally published in @blockchain on Medium, where people are continuing the conversation by highlighting and responding to this story.

Source: https://medium.com/blockchain/end-of-the-transitory-314075266ba9?source=rss—-8ac49aa8fe03—4

Time Stamp:

More from Medium