A Fundamental Analysis of Crypto Markets in Early 2022: China Soon To Stop Selling Bitcoin?

Crypto prices have been stagnating for months despite good news

China has been selling Bitcoin since the ban in May 2021

  • Phase 1, May 2021: China prohibits all its financial institutions from engaging in any crypto transactions.
  • Phase 2, June 2021: The Chinese government imposes a ban on all domestic crypto mining.
  • Phase 3, September 2021: all cryptocurrencies are completely outlawed in China, with no room for interpretation.
Figure 1: BTC Exchange Balance in % of total circulating BTC supply. Source: glassnode.com

Asian markets negatively impact bitcoin price

Figure 2: MoM change in Bitcoin price during Asian working hours. Source: glassnode.com

The data for the US and EU markets paint a different picture

Figure 3: MoM change in Bitcoin price during US working hours. Source: glassnode.com
Figure 4: MoM change in Bitcoin price during EU working hours. Source: glassnode.com

Bitcoin HODL army growth may turbocharge upward price action

Figure 5: Bitcoin HODL army growth, illiquid supply is catching up to circulating supply. Source: Bitcoin Magazine, Twitter @therationalroot

A prediction for 2022

Remarks

About the Authors

The International Token Standardization Association (ITSA) e.V.

  • The International Token Identification Number (ITIN) is a 9-digit alphanumeric technical identifier for both fungible and non-fungible DLT-based tokens. Thanks to its underlying Uniform Token Locator (UTL), ITIN presents a unique and fork-resilient identification of tokens. The ITIN also allows for the connecting and matching of other media and data to the token, such as legal contracts or price data, and increases safety and operational transparency when handling these tokens.
  • The International Token Classification (ITC) is a multi-dimensional, expandable framework for the classification of tokens. Current dimensions include technological, economic, legal, and regulatory dimensions with multiple sub-dimensions. By mid-2021, there will be at least two new dimensions added, including a tax dimension. So far, our classification framework has been applied to 99% of the token market according to market capitalization of classified tokens.
  • ITSA’s Tokenbase currently holds data on over 4000 tokens. Tokenbase is a holistic database for the analysis of tokens and combines our identification and classification data with market and blockchain data from external providers. Third-party data of several partners is already integrated, and API access is also in development.

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The International Token Standardization Association (ITSA) is a not for profit organization working on holistic market standards for the global token economy.

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International Token Standardization Association

International Token Standardization Association

The International Token Standardization Association (ITSA) is a not for profit organization working on holistic market standards for the global token economy.

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