Crypto Markets Experience Positive Momentum as Bitcoin Breaks Through 9-Month Range

03.20.2023

Market Overview:

Tokens have seen quite a large injection of volume, with heavy bids flowing in and positive momentum overtaking the order books– Bitcoin finally broke through a 9-month range. We see this as good news for investors and overall market participants. Additionally, the Federal Reserve and five other central banks announced coordinated action to boost liquidity in US dollar swap arrangements, giving risk assets a bid-tone.

This week, there is a busy macro calendar ahead with particular focus on the FOMC decision on Wednesday. In other news, the Cardano blockchain has released an update to enhance network communication, uptime, stability, and overall resilience. Russian lawmakers have approved the first reading of draft laws establishing CBDC regulation and issuance.

However, not all news is positive for the crypto space. The chair of EU Parliament’s Committee on Budgets has called for a crypto ban amid banking turmoil, raising concerns for crypto enthusiasts. The number of BTC held by closed-end funds, spot and futures-focused ETFs in Europe, the US, and Canada has declined by 16,560 BTC this month, reaching a 17-month low of 826,113 BTC (according to ByteTree Data).

Crypto ETP issuer 21Shares is closing down five crypto funds and delisting another due to low demand. MakerDAO has passed a proposal for a $750M increase in US Treasury investments. And, a year after raising $5M, Solana-based NFT marketplace Formfunction is shutting down.

There is also regulatory news to report, with the European Parliament passing EU digital wallet legislation. US SEC Chairman Gary Gensler has once again suggested that proof-of-stake tokens could meet the definition of securities under the Howey Test, suggesting the PoS consensus mechanism essentially promises a “return.”

Finally, Tether’s circulating supply has reached a 10-month high of $74B, up 10% YTD. TrueUSD has also moved $1B in reserves to the Bahamas after US banking failures.

As for trading, we have seen better buyer flow for crypto HFs and VCs as well as for traditional HFs, but better sellers for traditional VC and PE firms as well as crypto asset managers. The most actively traded tokens have been BTC and ETH (by considerable margin) followed by USDT and SOL.

NFT Market News:

Claire Silver: International Women’s Month NFF Spotlight

As we celebrate International Women’s Month, it’s essential to recognize the achievements of women in various fields. One such remarkable woman is Claire Silver, an unbelievably talented artist with an amazing story. Claire has gained recognition in the wild world of NFTs. Her story inspires so many women, especially those aspiring to make it in the art world. Claire is a self-taught digital artist who began her artistic journey in 2018 and has been creating unique, eye-catching digital art pieces ever since. Claire is a trailblazer in the emerging sector of AI Art, redefining what constitutes art. Her work is characterized by vibrant colors, intricate designs, and a touch of surrealism, making it stand out in the competitive world of digital art.

Recently, Claire has gained more publicity as an NFT artist, with several of her pieces selling for well over $30,000. Her work has been featured on various NFT marketplaces, including SuperRare KnownOrigin and the spotlight section of Opensea. She has gained a loyal following of collectors who appreciate her unique style. Claire also announced recently that a few of her physical pieces of art will be displayed at the Louvre in Paris. One of Claire’s most notable achievements in the NFT space was the sale of her artwork titled “Screaming into the Void” for 80 ETH (approximately $130,000 at the time of purchase) in September 2020. During this time, very few NFT’s were able to command these prices and this sale helped legitimize the medium. The piece was sold on SuperRare and quickly became one of the platform’s highest-priced sales, catapulting Claire into the limelight and solidifying her reputation as a talented NFT artist.

Besides her artistic talent, Claire also advocates for mental health awareness. Her work often explores themes of anxiety, depression, and self-reflection. Her art has been described as a representation of the human psyche and an interpretation of the complexities of the human experience. In addition to her success as an artist, Claire has been recognized many times for her contributions to the NFT community. In 2021, she was featured in the NFT Bible, a comprehensive guide to the NFT space, as one of the top female NFT artists to watch out for. She has also been a speaker at several NFT events, sharing her insights on the NFT space and offering advice to aspiring artists. Claire is also a human rights advocate and even helped raise millions of dollars in aid for Ukrainians affected by the war in a charity NFT auction.

Claire’s achievements as an NFT artist and advocate for mental health awareness make her an inspiration to women everywhere. Her success is a testament to the power of hard work, dedication, and passion for one’s craft. As we celebrate International Women’s Month, let us honor and recognize the contributions of women like Claire, who are making a difference in their respective fields.

DISCLOSURE

Ms. Silver’s piece, shown above, was selected as being representative of her work, and to honor her achievements. This reference made herein does not constitute an offer to sell, or a solicitation of an offer to buy, a security product.

Latest News:

WELCOME FRIENDS: Hundreds of institutions and prominent individuals have invested directly in crypto, adopted the value thesis, or started building technology to support digital assets since Wave started tracking this metric in late 2020. Now the rise of the Metaverse, Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Decentralized Autonomous Organizations (DAOs) is driving mainstream adoption of blockchain technologies everywhere we look. We’re continuing to keep track of it every week here:

• In an annual letter to investors published Wednesday, Larry Fink wrote about rising interest in the digital assets space over the past year, even though bankrupt crypto exchange FTX really captured the spotlight. He called attention to faster and more efficient payments in India, Brazil and parts of Africa. Fink also highlighted the tokenization of assets as an attractive use case because it points to chances of “driving efficiencies in capital markets, shortening value chains, and improving cost and access for investors.” He said BlackRock continues to explore the digital assets ecosystem, with a special focus on aspects that would drive the most value to clients, like permissioned blockchains and tokenization of stocks and bonds.
• Salesforce, the customer relationship management software firm, has launched Salesforce Web3, an NFT management platform to help its clients create token-based loyalty programs. Businesses can mint and sell NFTs, monitor blockchain activity, and view real-time customer data on Salesforce Web3, which launched today with subscription tiers. The roll out comes after a pilot program of 257,000 transactions with Salesforce clients such as whisky brand Crown Royal, clothing brand Scotch & Soda, and Mattel, the toy company behind Barbie and Hot Wheels.
• Microsoft is reportedly working on an Ethereum-based Web3 wallet for its flagship browser, allowing users to send and receive digital assets and NFTs. The wallet is currently in a limited testing phase and is not yet available to the public

REGULATORY ROUNDUP: We’re living through the era of regulatory recognition of digital assets. The legislation, litigation, and regulation happening today will dictate the entire future of our industry, and we have a historic chance to shape those changes by staying informed and exerting political influence.

• The European Union’s proposal on a digital identity framework has passed the European Parliament’s plenary vote, with 418 in favor, 103 against and 24 abstentions. The EU-wide framework would give citizens access to public services, and they would have their own wallet. The legislation includes zero-knowledge-proof technology to protect users’ privacy. ZK-proof protects privacy by verifying a position without revealing unnecessary data.

Disclaimer: The views and opinions expressed herein are those of the author alone and do not represent Wave Digital Assets LLC or any of its affiliates (collectively, “Wave”). The author and/or Wave may hold investment positions in some of the assets discussed. Nothing in this material or linked information should be interpreted as an offer or recommendation to buy, sell or hold any security or other financial product. This material is not intended to provide accounting, legal or tax advice. Certain information contained herein has been obtained from third-party sources, has not been independently verified and should not be viewed as being endorsed by Wave. Such information is believed to be accurate as of the date of its publication. No representation or warranty is made, express or implied, with respect to the accuracy or completeness, and readers should not place undue reliance on the information contained or linked to herein. Certain statements in this material provide predictions and there is no guarantee that such predictions are currently accurate or will ultimately be realized. Past performance is not indicative of future results.

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