Fidelity responds to criticisms of BTC. Asset management giant Fidelity released a report on BTC and responded to 9 criticisms of BTC. Criticism 1: BTC is too volatile to be used as a store of value. Fidelity response: BTC's volatility is a trade-off between its perfect supply inelasticity and a non-intervention market. BTC is an emerging store of value that is undergoing financialization, and its volatility should decline. Criticism 9#: There are "unknown unknowns". Fidelity response: There are risks beyond our awareness (known unknown risks), and investors should act prudently and adjust their investment positions accordingly. This applies to all assets, not just BTC.
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The U.S. Securities and Exchange Commission (SEC) Office of Inspector General (OIG) said: The SEC faces challenges in recruiting crypto-asset experts because many qualified candidates hold crypto-assets, and the rules of the Office of Government Ethics Counsel prohibit them from working on specific jobs that affect or involve crypto-assets. This prohibition is not conducive to recruiting talent because candidates are often reluctant to sell their crypto assets to work for the SEC. The Office of Inspector General said it plans to conduct more reviews of the SEC's recruitment practices in fiscal year 2024. The Financial Services and General Government (FSGG) bill of the U.S. House Appropriations Committee will be submitted to the Rules Committee for a vote and then to the House of Representatives. Including an amendment from Congressman Rep Tim Burchett to reduce the salary of SEC Director Gary Gensler to $1 and call for a cut in the SEC's funding for cryptocurrency operations. CoinShares reported that digital asset investment products had inflows of $260 million last week, the sixth consecutive week of inflows, and the current total inflows reached $767 million, exceeding the total inflows of $736 million in 2022. Moody's reported that stablecoins with a market value of more than $10 billion have been depegged 609 times so far this year. There were 707 depeggings in 2022, and the report counts a depegging as a stablecoin/fiat currency ratio exceeding 3% in one day. Moody's said that depegging is very common in stablecoins and is affected by a range of macro and currency-specific factors. Blockware said that the number of BTC addresses holding at least $1,000 has increased to an all-time high of 8 million. As BTC develops, the above figures may grow exponentially, which is a long-term bullish development for cryptocurrencies.
Bitfmex reported that weak US employment data indicated that the Fed would take a dovish stance and that the US central bank might not raise interest rates anymore, mainly due to tightening financial conditions and rising bond yields in recent months. As the Fed's sentiment towards no more rate hikes grows, it may drive BTC to perform even stronger. Bloomberg analyst Jamie Coutts said that the development trajectory of smart contract platforms seems to be growing exponentially, with a current daily user base of more than 5 million, a quarterly growth rate of 29% since 2019, and the number of daily users is expected to increase to 100 million. The current smart contract market value of about $350 billion is expected to soar to $5 trillion to $14 trillion, an increase of between 1,328% and 3,900%. According to Spot On Chain data, FTX deposited a total of 1.21 million SOL and 1,583 ETH to centralized platforms in the past 24 hours. Since October 24, FTX has transferred 31 different tokens to major platforms, with a total value of $310 million. FTX and its creditors have filed an application with the Delaware Bankruptcy Court for approval to sell approximately $744 million worth of Grayscale and Bitwise trust assets through an investment advisor. After a week of stimulus gains, hawkish members of the Federal Reserve came out to cool down the market. Kashkari said: "I don't think the rate hikes are over. It's better to do too much than too little. I'm "nervous" about declaring victory on the inflation issue too early." Currently, the probability of keeping interest rates unchanged in December is 90.4%, and the probability of raising interest rates is still less than 10%.
Goldman Sachs reported that hedge funds "aggressively" bought U.S. stocks at the fastest pace in two years last week, the largest five-day buying spree since December 2021, as investors generally expected the Federal Reserve to end its rate hikes and the U.S. stock market staged a rapid rebound. Equity strategist Leonardo Pellandini said that a better-than-expected U.S. earnings season and a peak in interest rates both indicate a rebound at the end of the year. Guggenheim, which has an asset management scale of $218 billion, said that the policy rate will remain unchanged at 5.25%-5.5% in the next few meetings, and a recession may come in the first half of 2024, forcing the Federal Reserve to quickly turn to rate cuts, eventually cutting rates by about 150 basis points next year and more in 2025. The bull market thinking that started at the end of this year is expected to look for currencies with a rise of less than 1 times at the end of this year, in anticipation of a 3 or 5 times or higher next year; at the end of next year, people will look for currencies with a rise of less than 3 or 5 times, in anticipation of a 10 times or higher next year. As for why there is a general rotation of increases, it is because whenever the momentum of the high-level Bitcoin weakens, greed prompts people to continue to look for targets with stronger momentum, and funds overflow, often resulting in a general increase. This process sucks the blood of Bitcoin, so the experience is not very comfortable, just like Bitcoin has been sucked blood by copycats from last weekend to now; Bitcoin's rising stage will also suck blood from copycats, and even from stablecoins. The rounds are alternating to make up for the increase. The old man had been up and down in the first two cycles, and was exhausted. He was a swaying leek. The last cycle was slightly better. This cycle is fully prepared psychologically, and I look forward to sitting tight and holding on. (In the bull market, there are also many people who fell into this volatility and lost to the market) The interest rate hike has reached its end, and the interest rate cut paves the way; the bull market is moving forward, sit tight and hold on, don't lose to the market, come on. #BTC #牛市来了