November Rally Reaches New Corners of the Digital Asset Market
Building on the upward momentum from the previous month, digital asset markets extended their strength into November. This market-wide rally elevated the total crypto-asset market capitalization to over $1.4T, with BTC and ETH climbing over $37K and $2K respectively.
Recent
Introducing the CMBI Bitcoin Hash Rate Index and ‘Observed Work’
Designing The Tools For Hash Rate Futures: Introducing the CMBI Bitcoin Hash Rate Index and ‘Observed Work’ Key Takeaways To date, the critical role of Bitcoin miners has been unhedged and solely dependent on the price of Bitcoin. However, [...]
Creating a Better Supply Measurement: Introducing Free Float Supply
An accurate measure of supply is crucial in determining a cryptoasset’s value. However, the definition and methodologies of calculating supply are not yet widely agreed upon or standardized, which leads to different supply counts across the industry. One definition of [...]
Assessing the Long-Term Fallout from Crypto’s Black Thursday
On March 12th 2020, now called “Black Thursday,” Bitcoin’s price dropped by nearly 50%, one of its largest drops since the Mt. Gox debacle. Source: Coin Metrics Reference Rates In our 43rd issue, we looked at the impact of that [...]
Investigating Bitcoin’s Changing Correlations
Is Bitcoin an Uncorrelated Financial Asset, A Safe Haven Asset, or Both? Investigating Bitcoin’s Changing Correlations By Nate Maddrey and the Coin Metrics Team The narratives about Bitcoin’s value have shifted over the years, and continue to be debated today. At different points, Bitcoin has [...]
The Signal and the Nonce Redux: From S9s to S17s
As Bitcoin enters its next halving, the network is experiencing several simultaneous transitions. In addition to the severe change in mining economics being caused by the reward adjustment, Bitmain’s Antminer S17 is in the process of replacing the longstanding S9 [...]
Understanding Miner Economics From First Principles
The next halvening is approaching, yet debate about its impact on asset prices remains mired in controversy. Two camps have formed. One believes the halvening is already priced in by market participants, citing the efficient market hypothesis. The other camp [...]
The BitMEX Liquidation Spiral
Analyzing How Crypto’s Nascent Market Structure Held Up During the Crash In the previous issue of State of the Network, we presented some preliminary analysis of the recent dramatic crash in cryptoasset prices. We showed that on-chain data seem to [...]
Data Shows Cryptoasset Sell-off Was Driven by Short-term Holders
On March 12th, amidst growing concerns over the COVID-19 pandemic, Bitcoin (BTC) suffered one of its largest one-day price drops in history. The rest of crypto followed, with most major assets down over 30% on the week. Source: Coin Metrics [...]
Using MVRV To Analyze Investor Behavior
Speculators vs Holders: Using MVRV To Analyze Investor Behavior In two previous issues of State of the Network (Primer on Cryptoasset Valuation Part 1 and Part 2) we conducted a comprehensive review of cryptoasset valuation research. In this issue we take a deep [...]