Green Tea & Digital Assets Weekly Round Up (November 28, 2021)

Green Tea & Digital Assets Weekly Round Up (November 28, 2021)

A weekly newsletter on actionable digital asset market insights and practical observations with a smidgen of green tea 🍡 insights

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πŸ’­βœπŸΌ Food For Thought πŸ’­ ✍🏼

πŸ“– Quote of the Week πŸ“–:

"When government fears the people, there is liberty. When the people fear the government, there is tyranny." - Thomas Jefferson

πŸ“° This Weeks Most Interesting Digital Asset News πŸ“°:

1. Chair of the U.S. Senate Committee on Banking is pressing Stablecoin Issuers (this is political theater because the NYDFS has the information already on file) - Link

2. An Indian CBDC + Digital Regulation to ban private digital assets under a broader regulatory framework is here - 23.11.21.pdf

3. Hillary Clinton Want the US to Ban Cryptocurrency (she seems to be on a "press run" for something) - Link

4. Fintonia Group Launches the Fintonia Bitcoin Physical Fund an and the Fintonia Secured Yield Fund in Singapore - Link

5. NFL Star Odell Beckham Jr. To Receive 100% of his 2021-22 Salary in Bitcoin - Link

πŸ“ˆ Top 10 Β Market Movements by Market Cap over the last 7 days πŸ“‰:

coinmarketcap.com

πŸ“ˆ Call Out Digital Asset Charts of The Week πŸ“‰:

Bitcoin: Grayscale Premium (Updated)

The discount in the total value of Bitcoin Trust shares (GBTC) to the Net Asset Value (NAV) of the Trust holdings of Bitcoin has now increased from 11% last week to 14% this week.

Bitcoin: Grayscale Market Price (Updated)

The market price per GBTC share.

Bitcoin: MVRV Z Score

The MVRV Z-Score is used to assess when Bitcoin is over/undervalued relative to its "fair value". When market value is significantly higher than realized value, it has historically indicated a market top (red zone), while the opposite has indicated market bottoms (green zone). Technically, MVRV Z-Score is defined as the ratio between the difference of market cap and realized cap, and the standard deviation of market cap, i.e. (market cap – realized cap) / std(market cap). You can see above that the on-chain data (regardless of media headlines remains strong and comfortably with a lower middle of the z score range--nowhere near historical Z score tops. Keep Calm and carry on accumulating.

Bitcoin: Futures Volume Perpetual

The total volume (USD Value) traded in perpetual (non-expiring) futures contracts in the last 24 hours. The chart above is a correlarly with the Ethereum chart of the same metric from last week. We can see that even though the BTC price went down on variant fears that was a macro market move and not based on any on-chain metric. When the perpetual futures volume is very high we tend to see BTC price corrections as over leveraged players get washed out. Β Currently, there is not a lot of leverage on.

Litecoin: MVRV Z Score( Updated)

The MVRV Z-Score is used to assess when Litecoin is over/undervalued relative to its "fair value". When market value is significantly higher than realized value, it has historically indicated a market top (red zone), while the opposite has indicated market bottoms (green zone). Technically, MVRV Z-Score is defined as the ratio between the difference of market cap and realized cap, and the standard deviation of market cap, i.e. (market cap – realized cap) / std(market cap). Β As I noted last week, LTC has historically had explosive breakouts on a lag to BTC so it is worth keeping an eye on this updated metric. See also the LTCN ETF product for further historical views into its esiposidc explosions to the upside.

Ethereum: Net Unrealized Profit/ Loss Ratio (NUPL)(Updated)

Net Unrealized Profit/Loss is the difference between Relative Unrealized Profit and Relative Unrealized Loss. Inspite of the market narratives regarding variants this holiday---there has been no change to the on chain metrics which are still signaling strong fundamentals not reflected in prices.

Ethereum: MVRV Z Score

The MVRV Z-Score is used to assess when Ethereum is over/undervalued relative to its "fair value". When market value is significantly higher than realized value, it has historically indicated a market top (red zone), while the opposite has indicated market bottoms (green zone). Technically, MVRV Z-Score is defined as the ratio between the difference of market cap and realized cap, and the standard deviation of market cap, i.e. (market cap – realized cap) / std(market cap). Take a note of where the Z Score is now relative to November 2017---its looks ready to break with prices to follow to the upside.

I hope everyone enjoyed this weeks write up. I expect some fireworks between Thanksgiving and Year End. Stay Frosty!

Green Tea Tidbits:

Studies suggest the best time to drink Green Tea is in the morning and before any workout regimen.

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Disclaimer:

This Newsletter does not provide, and no portion of this content purports to be, individualized or specific investment advice and I do not provide investment advice. Β All information provided herein is general in nature and is made without regard to individual levels of sophistication or investment experience, investment preferences, objectives or risk parameters and without regard to the suitability of the content for individuals or entities who may access it.

No information provided herein, should be construed as an offer to sell, or a solicitation of an offer to buy any security or investment vehicle, nor should it be construed as tailored or specific to you, or any reader or consumer thereof. You understand and agree that the content does not constitute specific recommendations of any particular investment, security, portfolio, transaction or strategy, nor does it recommend any specific course of action is suitable for any specific person or entity or group of persons or entities.

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