BTC bottom: near or already here? 🤔🤔

Good Morning, Switchers 🌞

👋Welcome to Switch Daily.

Are you following the football world cup? Well, we are!

⚽Kicking off this edition of the Switch Daily is a fun piece about the FIFA Semi-Finalists and their crypto connections.⚽

🇦🇷Argentina: The 2022 crypto adoption index puts Argentina in the 13th position globally. The rising inflation is putting the focus back on BTC. Feels positive pro max!!!

🇫🇷France: Between July 2021 and June 2022, France held the third spot among the CNWE (Central, Northern, and Western European) countries in terms of crypto value received. 

🇭🇷Croatia: Croatia’s crypto-readiness rating stands at 6.2 out of 10 — at par with the likes of UAE and Romania, per the Forex Suggest report.

🇲🇦Morocco:  Morocco ranks fourth among the MENA (Middle East and North African) nations when it comes to YoY growth in terms of crypto transaction volume. 

Conclusion: Crypto wins 🏆, regardless of who lifts the trophy!

Think we are making this all up? Read the entire “Geography of Cryptocurrency Report” here

Also, other nations that were ousted early and couldn’t feature on the Switch Daily:

BTW, if you like reading this newsletter, give us a shout-out on Twitter and get your friends to subscribe. It will mean a great deal to us!

Here’s what we’ve got for you today: 

• Market pulse

• Is the bitcoin bottom in?

• Morning news

• Meme of the day

Market pulse 📈

The market turns a snail as gains still look pale 🐌

While the redness from yesterday has disappeared, the broader crypto market is trading relatively flat this Tuesday morning — 13 December 2022. Currently, we are up 0.17%, which feels underwhelming, especially with the U.S. inflation figure expected to improve. Or is it?🤔

 BTC and ETH are among the broader market outperformers, trading up by 1.41% and 1.79%, respectively, at the press time.

Among the top cryptos, Polygon (MATIC) looks the most active, with a 3.17% uptick to its name, day-on-day. At CoinSwitch, decentralized computing provider iExec RLC (RLC) shows up as the top gainer, following an 8.41% uptrend. Litecoin’s fork Dash (DASH) is closing in on RLC with a 24-hour upmove of 7.75%.

The Crypto Fear and Greed Index is still at 27 and hasn’t moved since yesterday. A rangebound market indeed!

Bitcoin’s “Bottoms-Up” moment? 🍻

BTC will correct more!

BTC will go down to 10K!

BTC has bottomed out — a rally begins soon!

If you have heard these speculative statements during the bear market, it’s time to cover those ears for good. Or you can simply read along and see us give you some data-backed metrics on the famed BTC bottom. 🙏

Metric 1: Exchange inflow of Stablecoins

It is common for stablecoin exchange inflows to shoot up during market bottoms.

Reason: Stablecoins are like the "Fiat" of crypto. Once they flow into exchanges, assets are bought, resulting in heavy exchange outflows.

Remember the bottom of July 2021 when the prices dipped south of 29K? Here is a chart shared by abramchart that shows a surge in exchange inflows during that time. If you see the recent formation, the stablecoin inflow seems quite muted. This shows the BTC bottom might still be at a distance.😱

Metric 2: BTC Production cost

We know what gives BTC its intrinsic value, right? Well, it is the cost to produce the same, mostly determined by the electrical costs. Here is a chart that plots the electricity cost with BTC prices. Look closely, and you will notice that there have been only a few instances when the BTC prices dropped lower than the production costs.

This signals that the BTC bottom might just be in.

Metric 3: Long-term holding %

Currently, 66% of BTC’s current supply is held by LTHs (Long-term-holders). The glassnode chart suggests that long-term holding has always peaked during market bottoms.

Apparently, Metric 1 believes that ‘BTC-Bottom’ might still be at a distance, whereas Metric 2 and Metric 3 are strongly in agreement that this is the deepest market trough in this cycle.

And while we have just enlisted three metrics, here is a thread that talks about a few more. Read through to get your BTC DYOR on point.

Also, Arthur Hayes — CEO of BitMEX — has a more interesting take on BTC bottom. He believes that with most bankruptcies out of the way, the selling pressure on bitcoin might just be easing off. Here is the interview where he discussed the BTC bottom, among other things.

Note: We’re not financial advisors, and this is not financial advice. We’re merely your fellow investors sharing the knowledge we gather.

What’s cooking in crypto? 🍳

⛏️ BTC miner mulls restructuring to avoid bankruptcy

Argo Blockchain, a reputed BTC miner, is currently in negotiations to sell assets to improve its balance sheet and overall liquidity. Based out of London, Argo believes that a restructuring move as such can help it skip bankruptcy. Yet, the company gives no reassurance and keeps Chapter 11 as an option.

🥳 Crypto insurance company raises $14 million

Evertas, an insurance firm in the crypto space, has recently concluded the Series-A funding round, raising $14 million in the process. Leading the round was Polychain capital, the investor behind Internet Computer. Evertas raised $5.8 million in 2021 via seed funding.

💎 Jewel stablecoin eyes Polygon

Jewel Bank, based out of Bermuda, plans to launch a fully USD-backed stablecoin in Jewel USD or JUSD. Jewel plans to use Polygon for hosting the stablecoin. This association might even allow Jewel Bank to use Polygon’s extensive ecosystem for other commercial offerings.

Meme of the day!

Thank You,

See you tomorrow, folks. 👋

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