Qrafty is wondering if it's time for an uptrend break, ordinals are making BTC fees high and the DTCC knows something fishy is going on

***Qrafty smiling the biggest smile*** Aloha, crypto curious! I am Qrafty - the crypto lovin’ honey badger 🦡 !

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1. Nice Uptrend. Time To Pay Attention?

2. Ordinals Make BTC Fees Jump

3. Incoming Black Swan? DTCC Knows Something

Bonus: UK Clears Path For Stablecoins

Nice Uptrend. Sideline Time?

The digital asset market continues to bask in a sunbeam of positivity, marking its sixth week of consecutive inflows, totaling a healthy $261 million. This pushes the grand total of inflows for digital asset investment products to an impressive $767 million, sailing past the cumulative figure for the entire year of 2022.

Bitcoin, always the headliner, claims the lion's share with a substantial $229 million, propelling year-to-date inflows to $842 million.

The increasing prospects of a spot-based ETF in the US and concerns regarding the efficacy of US monetary policy are among the factors contributing to this surge.

Ethereum, no longer content to linger in the background, stages a grand return with its largest inflow since August 2022, totaling a notable $17.5 million.

US investors are gradually stepping into the limelight, contributing a noteworthy $157 million, while Germany, Switzerland and Canada maintain their active roles, with inflows of $63 million, $36 million and $9 million.

The world of altcoins is also abuzz with energy. Solana grabs its piece of the pie with $11 million in inflows, while Chainlink stands tall with $2 million, representing a hefty 17% of total assets under management.

Furthermore, Polygon and Cardano each add their unique flavors to the mix, with inflows of $0.8 million and $0.5 million, respectively.

Things seem to be looking up for the market overall while Bitcoin is approaching the mid channel. It has been going on for a while now and the question is: how long will it last?

A lot of people are starting to get into the bulltard mindset, which isn’t good regardless of the market conditions. Perhaps this is a moment to start paying attention and consider sidelining some capital? There was blood in the streets, now the enthusiasm is starting to get a bit out of control.

Qrafty is just saying to pay attention.

🙃 Qrafty hopes that today’s main story brought brave badgery value to you! Now it’s time for a break, you deserve a bit of fun! 😇 👇️

Ordinals Making Bitcoin Fees High

According to bitinfocharts, as ordinal inscriptions' on-chain activity continues to expand, Bitcoin's network experiences rising congestion, resulting in a remarkable surge of over 4000% in transaction fees, which now stand at $6.13.

Ordinals, a type of nonfungible token (NFT), store data directly within the blockchain. BRC-20 Ordinals contribute a substantial volume of transactions for Bitcoin miners to handle on the blockchain, leading to congestion in the mempool and increased competition for confirmations.

Consequently, higher fees become a necessity, and transactions lacking these fees experience slower confirmation times compared to the usual processing speed.

UK Wants To Be All Money HQ

Please consider empires and their transformation in time as they fall and diminish. The Roman Empire morphed into the Empire of Faith and hq-ed at the Vatican on top of Saint Peter’s tomb. The Vatican sits on top of what is the world’s most important (known) graveyard and hides the most important parts of the world’s knowledge.

The British empire downsized from its sea domination and conquering epoch into the keeper of capital for the world’s top 1%. With its hq in Little London and an extensive spider’s web network of offshore services and tax havens, the white collar capitalists guarantee that the money of the top 1% will be safe from the authorities and bureaucratic walls upon bureaucratic walls will be enacted for protection from prying eyes.

The main story about UK today is that PM Rishi Sunak is advancing UK’s mission as the capital of capital of the world by regulating stablecoins, the secret cash cow and control means of the whole cryptocurrency market.

Any company eyeing the stablecoin market will need the FCA's stamp of approval, and they won’t be giving them like candy.

The Bank of England is paying special attention to stablecoins tied to the British pound. Why? Well, according to the Prudential Regulation Authority, they pose lower risks of financial contagion in regulated payment systems overseen by the Bank compared to e-money or other stablecoins under the FCA's jurisdiction.

What Does The DTCC Know?

Something's cooking in the world of finance, and it smells like trouble. The DTCC (Depository Trust & Clearing Corporation) just cranked up the margin requirements for mortgage-backed securities (MBS) and threw in a 50% boost for MBS VaR stress testing.

The catch? Banks have a mere two weeks to get their act together. And wouldn't you know it, that's right when the US Government might be taking an unscheduled break.

To add to the enigma, on November 2, the DTCC decided to issue an even more peculiar notice, reminding its members that they have a mere one business day to declare a "reportable event." And here's the twist - this rule now obliges Sponsoring Members to report any significant change or deterioration in their financial or operational condition, even if those Sponsored Members still technically meet the minimum membership requirements.

So, what's the deal here? Are we teetering on the brink of a liquidity crisis? Is there some cloak-and-dagger scenario unfolding behind the scenes?

The question on Qrafty’s mind: What does the DTCC know that we don’t?

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Ah, tomorrow, the mystical land where I always get my chores done, exercise regularly, and eat kale without complaining. Or at least, that's what I keep telling myself!

Qrafty’s thought of the day

Other stories

The SEC has problems hiring crypto experts

The SEC faced challenges in recruiting experts during the past year, as revealed in an October report by the SEC's inspector general. This was primarily due to several candidates being reluctant to comply with the agency's ethics regulations, which required them to divest their cryptocurrency holdings. The inspector general emphasized the importance of hiring these experts for addressing emerging issues in the cryptocurrency markets.

Coinbase: bye bye BSV

Coinbase is letting its users know that they must withdraw all their BSV coins before January 9th: “If you fail to withdraw your BSV funds, Coinbase will liquidate any remaining BSV remaining in your Coinbase account”. Pretty straightforward, right? Especially considering that Craig Wright was caught faking documents about him being Satoshi.

OpenSea valuation down by 90%

VC valuation are like the taste of chewing gum, more of a personal preference and general agreement than an exact and clear methodology, regardless of how strong they want to claim the opposite. Therefore, OpenSea goes from a $13.3 billion to $1.4 billion valuation overnight, thanks to Coatue Management who marked down its previously valued $120 million stake in the platform to $12 million. Just like that, poof!

Market Whispers

Quite interesting the price action of Bitcoin today.

It got everyone scared by bleeding slowly towards $34,500, and after a few failed attempts to bounce (on a small time frame, 5-15 min) everyone flipped short. Then the magic shorts squeeze happened which pushed the price almost to the highs, to $35,904. Quick reminder: we are looking on a futures chart, the price on spot exchanges are slightly different.

Now, what to do next? Considering the fact that we didn't touch the highs or made a deviation there to give us a short trigger, now we are waiting for some price action to develop.

Ideally we'll have a push higher, giving a higher low to short. Or it gets back under $35,200, re-tests the level and rejects, for another short setup. Take profits level will be today's low at $34,500 and the old and long waited $33,800 - 34,000 level. From there same setup as discussed in the last days, quick reaction, long, getting under, short to $32,500.

Ethereum is doing the same up and down dictated by Bitcoin.

Until ETH/BTC summons some strength, ETH is no fun to trade. Turning $1,912 into support, opens the path to $1,930, which is a tricky zone, so take some profits there. Above $1,930 we are clear for $2,000.

Depending on Bitcoin, the wick at $1,850 looks like it wants to be taken before a move higher. We are not in a "alt season", Bitcoin is still leading the market, so until this changes playing with altcoins is tricky, keep your stop losses tight.

Qrafty ends channeling his inner trader.

Today is HUG A BEAR DAY!

That’s all from Qrafty 🦡 for today! Qrafty thanks you and wishes you to live each moment as if you are listening to the music you love most!

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