CryptoCodex: As The Price Of Bitcoin And Ethereum Slide These Two Cryptocurrencies Are Making Surprise Gains – Forbes

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Cryptocurrency traders are still hoping for a late Santa rally but a continued downward trend this morning is making that seem almost impossible. The bitcoin price is down 2% on this time yesterday while ethereum is off by 2%. The combined crypto market looks more likely to slip below the $2 trillion mark for the first time since October than stage a late comeback.
The bitcoin price is still dropping this morning after a steep sell-off last week, dragging on the … [+] ethereum price and wider crypto market.
Ethereum rivals solana and avalanche are this morning leading the major market lower, each down around 6%. Two bright spots are Ripple’s XRP and terra’s luna, both up almost 4% on the last 24 hours.
Now read this: We all need to stop only seeing the dark side of crypto
Centralized decentralization: The top 10,000 bitcoin accounts hold 5 million bitcoins, worth around $232 billion, research from the National Bureau of Economic Research that’s mapped and analyzed every transaction in bitcoin’s history has found. The report was first seen by The Wall Street Journal that wrote: “new research shows that just 0.01% of bitcoin holders controls 27% of the currency in circulation.”
Why it matters: According to the researchers, this means the entire bitcoin network is susceptible to systemic risk and the majority of the gains that the bitcoin price has seen go to a relatively small group of investors. The top bitcoin holders control a greater share of the cryptocurrency than the most affluent American households control in dollars.
Concentrated: “Despite having been around for 14 years and the hype it has ratcheted up, it’s still the case that [bitcoin’s] a very concentrated ecosystem,” MIT Sloan School of Management finance professor Antoinette Schoar, who carried out the study along with Igor Makarov of the London School of Economics, told the Journal.
Meanwhile… The amount of bitcoin held by miners is just 500 short of its all-time high, according to on-chain analytics company Glassnode. Miners are currently holding just under an all-time high of 1.778 million bitcoins, down from its peak 12 months ago. “These coins are issued to miners as a reward for solving a block, but have never been spent on chain,” Glassnode analysts said via Twitter.
Check this out: Bitcoin and crypto’s year in charts
Andrew Bailey, governor of the Bank of England, has often criticized bitcoin and cryptocurrencies.
🏦 The U.K.’s Bank of England (BoE) will next year accelerate discussions with other major central banks around the world on a cryptocurrency regulatory framework, it was yesterday reported by The Times of London newspaper.
πŸ’± A BoE executive said international cooperation is required to establish rules that will protect the financial system from the fast-growing crypto market, warning the Bank has faced “challenges” in finding data on cryptocurrency holdings by institutional investors.
πŸ—£οΈ “The ability to get data on what institutional investors are [holding] is a challenge,” Sarah Breeden, executive director for financial strategy and risk at the Bank told The Times. “This is not something the U.K. can solve all on its own.”
Now read this: A 48 tweet Twitter thread on how the art world is embracing NFTs
πŸ‘€ Watch out for these cryptocurrency and crypto-related events this week.
🦠 Europe is accelerating Christmas and New Year lockdowns in response to the spreading Omicron Covid-19 variant and we may see a crypto, stock market and asset sell-off similar to previous panics if restrictions aren’t met with fresh government handouts for hit businesses.
😷 Tomorrow, U.S. president Joe Biden will outline steps being taken state-side to address the Omicron variant in a national address.
πŸ“ˆ On Thursday, the Federal Reserve’s preferred report for measuring inflation, the personal consumption expenditures price index, drops. After a few worse-than-expected reports, economists are expecting the worst.
🎀 Also Thursday, Russia’s president Vladimir Putin will hold his annual marathon press conference, fielding questions on everything from the economy to foreign policy. Last month, Putin said crypto’s “volatility is colossal” following suggestions Russia could use crypto to escape targeted sanctions.
πŸŽ„ On Christmas Day, the Staples Center will formerly be renamed the Arena.
Upsetting crypto Twitter: Bitcoin β€˜may not last that much longer,’ academic warns