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The price of Bitcoin was largely stable last week as it entered the third week of trading around the $17,000 mark. The price of the cryptoasset has remained highly becalmed in the wake of the big sell-off in early November and appears somewhat in the doldrums at this point.

Ethereum meanwhile saw some price movement last week, beginning below $1,160 before rising above $1,275 by yesterday. It is currently trading back down to around $1,250.

We’re now also at the time of year when price predictions for the year ahead are coming thick and fast. Perhaps the most eye-catching has come in from Standard Chartered which sees the price going to $5,000 next year. 

These kinds of predictions and price guides should be taken with a heavy pinch of salt though and investors should always focus on the long-term use cases for the assets which they are holding. Bitcoin has been sensitive to major macro trends in 2022 and this could likely continue next year. But with a fresh halving on the horizon, some momentum may begin to shift in due course. 
 

UK Government steps up crypto regulation efforts

The UK Government is expediting its crypto regulation efforts in the wake of the crises of the past few months, according to reports in the Financial Times. The process of codifying rules for the sector was already underway through the Financial Services and Markets Bill, but it looks like the timeline is being brought forward and more specific rules could now be brought in.

This is a positive development for the sector after what has been a difficult few months for many market participants, from investors to institutions. Regulatory clarity in the UK will promote much greater stability for those participants so the outcome of regulatory clarity is definitely desirable for the sector. 

These rules will quite likely define the landscape of crypto in the UK for years to come. It is essential that users be protected while the sector is allowed to continue to innovate. The Government should avoid knee-jerk reactions, but comments from the Treasury at this point are encouraging that this won’t be the case. 
 

Bitcoin mining difficulty plunges

The difficulty of mining new bitcoins has plummeted by more than 7%, its largest fall of the year, and the biggest drop since July 2021, according to BTC.com data. 

The mining difficulty has come off all-time highs last month as the cryptoasset grapples with declining prices. Miners are also facing headwinds from rising energy costs, especially as we head into winter.  

While it is instructive of the health of the network - the difficulty rises and falls depending on the number of miners operating - it is also a lagging indicator of the market. But with the bitcoin price in the doldrums still, it could be some time before miners start turning rigs on again. 
 

Goldman Sachs on the hunt for crypto bargains

Major global investment bank Goldman Sachs is on the lookout for crypto firms with depressed valuations to snap up, reports in Reuters today suggest. It marks another interesting signal that while the market reels, smart buyers are looking to make plays in the sector.

It follows the news last week that Goldman Sachs was launching a digital assets platform with the European Investment Bank (EIB) which will enable the instantaneous settlement of digital asset sales such as bond auctions. 

What is clear here is that the market valuations of cryptoassets are being largely bypassed by investors looking to snap up deals and buy into projects at favorable valuations. This is a pretty typical modus operandi for a major player such as Goldman and can perhaps give investors some comfort that they’re not the only ones prepared to wait out the crypto winter.

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