Weekly Report: A General Market Decline

December 8 2021 — The Federal Reserve will hold its final meeting of the year next week, and the Fed’s actions over the next two weeks are expected to have an impact on the market. Sub-sectors such as DeFi/NFT/public chains have generally cooled off. The secondary market saw a general decline with more panic sentiments, and ongoing volatility is expected to continue.

The market declined in general. Market value fell to below US$2.3 trillion last week as Bitcoin slipped below US$50,000. Spots turnover posted with modest changes last week. And turnover of Bitcoin futures grew 22% together with an increase of 34% in Ethereum futures while there was no significant change to open position. The Federal Reserve will hold its final meeting of the year next week, and the Fed’s actions over the next two weeks are expected to have an impact on the market. Sub-sectors such as DeFi/NFT/public chains have generally cooled off last week. The secondary market saw a general decline with more panic sentiments, and ongoing volatility is expected to continue.

• Total market value declined. Last week, the total market value of digital assets declined to below US$2.3 trillion. Bitcoin decreased significantly to below US$50,000.
• Most of the top 100 digital assets fell. Last week, among the top 100 digital assets, 11 staged growth, while 89 witnessed decline.
• Bitcoin’s hash rate rose. The average hash rate of Bitcoin grew week-on-week. The weekly average hash rate was about 169.82EH/s.
• Bitcoin’s on-chain activity grew and Ethereum’s on-chain activity decreased. The Bitcoin network saw an increase of 3.02%, 10.34% and 10.75% in average number of transfers, average number of active addresses and average transfer amount. In the Ethereum network, the average number of on-chain transactions grew 0.82% with the number of active addresses and the average on-chain transaction amount up by 8.98% and 39.68%, respectively.
• Stock exchanges registered modest changes in turnover. Last week, turnover on the 10 exchanges tracked by us showed little change. Binance moved down by 1.2%. Bitfinex, Bitstamp and Coinbase all recorded an increase of 28.1%, 6.2% and 2.9%, respectively.
• Open position in futures decreased to US$16.5 billion. Last week, turnover of Bitcoin futures market grew 22% week-on-week, with open position down to US$16.5 billion.
• Bitcoin and stablecoin rose to US$138.4 billion. Last week, turnover of USDT increased by US$2.4 billion. USDC increased by US$2.3 billion, and BUSD increased by US$480 million.
• Open position in futures decreased to US$23.3 billion. Last week, turnover of Bitcoin futures market grew by 11.9% week-on-week, with open position down to US$23.3 billion.

About HashKey Capital
HashKey Capital, HashKey Group’s venture capital arm, is an institutional asset manager investing exclusively in blockchain technology, digital assets and crypto-financial infrastructures. It provides accredited investors and professional investors with secure access and diversified exposure to digital assets. HashKey Capital combines the agility and independent risk-taking traditionally found in the best venture firms, while offering differentiated access to the network of relationships found in one of the largest industrial and financial conglomerates in the world.
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