BGB Sail: November Edition
Bitget Academy is delighted to announce the release of our new BGB Sail Series, which reflects on BGB performance each month alongside the market summary.
BGB Sail: October Edition can be found here.
Market Summary
Undoubtedly, when we talk about November, the first thing to appear in our mind now is the collapse of FTX - an event that has shaken the whole crypto industry to the core. We want to cover details about it in a separate reading, so stay tuned and subscribe to us to not miss anything!
Now, before FTX, Bitcoin prices had been clinging nicely to the US$20,000 mark - activities were within the normal range across markets - spot, futures, even ETFs. The number of Bitcoin addresses that hold more than 1 whole Bitcoin hit a new all-time high of 921,578, per Glassnode.
Source: Glassnode
This figure further supports CryptoCompare's Q3 Review that shows consistent accumulation of BTC in almost all accounts.
Source: CryptoCompare
Then Sam Bankman-Fried, his troubled exchange and faulty hedge fund Alameda Research entered the picture.
A timeline of the FTX story
Alameda was a major funding source for several crypto startups, while FTX was home for big players, market makers, lenders, well, you name it. FTX in liquidity crunch and consequently insolvency means that many billions of dollars in digital assets can no longer come back to their original owners. After FTX(dot)com halted withdrawals, we began to see a crash.
Source: Coinalyze
See how BTC prices plummeted to 15K-something (that’s a decrease of approximately 25%) in less than 2 days? Far worse, it triggered more than US$1 million in liquidations on centralised exchanges within November 8 - November 9, turning on the ‘extremely bearish’ mode. Funding rate quickly shot up to -0.033% on Binance (the highest for CEXs) and -0.107% on dYdX on the second funding cycle of November 9 to -0.119% on Binance and -0.171% on dYdX on the last funding cycle of the same day.
The trust issue that arises with the fall of FTX caused a huge outflow of funds from exchanges. Data from CryptoQuant shows it reached levels similar to when Terra (LUNA) tumbled, if not higher. That could also explain why there were more Bitcoin addresses with more than 1 BTC holdings.
Source: CryptoQuant
The effect, of course, also spread to the ETFs market. On November 9, the aggregated volume for two most important Bitcoin ETFs, ProShares Bitcoin Strategy ETF (NYSEARCA:BITO) and ProShares Bitcoin Short Strategy ETF (NYSEARCA:BITI), skyrocketed to nearly US$1 billion.
Source: Eric Balchunas
As Bitcoin dominance remained above 40% since August, the global crypto market cap and altcoin prices took a nosedive because of this event. From the all-time high of US$2.92 trillion and the recent new normal of US$900 billion-US$1 trillion, the market capitalisation of all cryptocurrencies sunk to US$793 billion.
Source: Macrobond, Morgan Stanley Research
From a macro perspective, we saw signs of a possible dovish move from the Federal Reserve (FED) as the U.S. CPI experienced a slight relief. Compared to September, October's figure demonstrates a 0.4% growth, that is, a 7.7% YoY increase. The expectations were 0.6% MoM and 7.9% YoY, therefore (we thought) we had good reason to be bullish. Then the non-farm payroll figures came in after FTX, with the employment increasing by 263,000 instead of the forecasted 200,000. We are currently in the blackout period before the final rate decision of 2022 tomorrow (December 14), so take some quiet time and zoom out before deciding on any move.
BGB Performance in November
FTX may have betrayed the trust of million traders, but there are other CEXs out there who have proven their integrity over time. As the native token of the leading crypto derivatives exchange, BGB (Bitget Token) has recorded a glorious year with effective resistance against market turbulence. It even thrives in negative conditions like this month of November - BGB and OKB are the two only exchange tokens with a positive return. If you throw BTC and ETH in, BGB still beats those flagship cryptocurrencies at 1.44%.
A rare case of November is DogeCoin (DOGE). DOGE has been on the rise after Musk completed his acquisition of Twitter in late October, but BGB is clearly the winner here in terms of both consistency and performance.
If you want to learn more about how BGB has been beating the market, an analysis of previous months is available here:
Why demand is keeping BGB afloat
With the launch of Bitget’s new DeFi product series, BGB becomes strictly a necessity. The more BGB you own, the more you can earn - there are several options for every risk appetite. If you are risk-averse, why not try BGB Earn? Mind you, interest rates may be on the rise, but a strong US-Dollar is hurting all other fiat currencies. For example, the Euro (EUR) has lost ca. 15.9% from January to September, the British pound (GBP) 21.8%, the Japanese Yen (JPY) 26%, etc. Even the Swiss Franc (CHF) has been weakened by roughly 7.6%, whereas the BGB net value increased by 20%! Given that BGB Earn offers a 6% APR, the only question is just how many times your asset value could grow if you are a BGB holder?
An alternative is putting your BGB to work via Bitget Launchpool. Nearly 90,000 USDT in staking rewards has been distributed to participants of 9 pools, that is, an average of 30,000 USDT per each pool. BGB is a default choice for staking tokens, which is to create lucrative opportunities for BGB holders. A total of 73.5 million BGB (around 5.25% of the circulating supply) were staked in November only, showing high interest in our short-term, high-yield and secure staking services.
Bitget-Verse
kcgi">Bitget KCGI was finally kicked off in November at the same time as the World Cup 2022 in Qatar. Our experienced traders have been fighting alongside the legendary Lionel Messi and the Argentina team with spectacular results:
• The Top 32 team with the highest number of members comes from Asia. Total team members: 1,607
• The best Top 16 team has a PNL ratio of 549.23% and comes from CIS (Russia)
• The best team of Top 16 continues to lead the pack, claiming the 1st place of Top 8 with a PNL ratio of 361,223.94%.
Still time to join the individual race, sign up now! Don’t forget to show us the spirit by predicting the results of the next games and share ONE MILLION BGB as rewards!
Spot Futures Activities
Futures activities, represented by the aggregated volume of all contracts, saw a minor decline of 4%. Bitcoin continued to dominate the futures markets, standing at 67-69% of the total open interest for November. BGB volume shows more consistency than the total volume, of course, as BGB value is sustainedly upheld.
To assist investors with trading in the sideways market, Bitget team has made Spot Grid Trading available even for very low investment capital! Learn more about this opportunity here. Enthusiastic investors can also trade fan tokens with Bitget Spot Grid Trading as well!
Moreover, Bitget has released Bitget Strategy Plaza to help spot traders generate better income from trading. Bitget Strategy Plaza will offer investors and traders more flexibility in the way they interact with one another whilst fine-tuning their approach to the cryptocurrency market. And prepare to DCA with ease because we’re about to drop Bitget DCA! Check out the guidelines below:
Bitget Strategy Plaza Introduction
Bitget Strategy Plaza: How-To Guide for Users
Bitget Strategy Plaza: How-To Guide for Strategists
Bitget SharkFin
True staking has come to Bitget! The main difference between Bitget Launchpool and Bitget SharkFin is the asset lock. In-and-out is flexible with Bitget Launchpool, whereas Bitget SharkFin will lock the assets during staking time! For that reason, Bitget SharkFin also comes with a floor APR for users. If prices are to stay within the given range within the same time frame, higher APR is guaranteed - therefore it is a structured staking product.
Two SharkFin pools will open in less than 24 hours: BTC (guaranteed APR: 1%-11.84%) and USDT (guaranteed APR: 1%-12.58%). Each of our staking pools are designed to be available for a relatively short period of time (5 days for Launchpools, 7 days for the two new SharkFin pools), thus allowing users to manage their assets in accordance with market movements. Lower risk is the key!
To encourage conscious trading, we want to introduce the first Learn-To-Earn event: 10,000 BGB will be sent to 100 randomly selected SharkFin learners! You only need to pass the SharkFin Quiz here and wait for the lucky draw! For reference on the topic, please refer to our article on Bitget SharkFin Introduction.
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