January 2023 Rollup | Latest Trends & Developments

As the crypto landscape continues to evolve, we see remarkable milestones being reached, such as the recent climb of Bitcoin's mining difficulty to a new all-time high of almost 40 trillion. This serves as a testament to the growing strength and security of the network, as the steady rise of mining difficulty over the past year, with only temporary decreases, reflects the increase in computational power being dedicated to the network.

In this rapidly evolving industry, the rise of mining difficulty and hash rate is a symbol of the resilience and fortitude of the network. Likewise, the continued growth of the crypto landscape is a testament to its potential, poised to shape the future of finance and value profoundly.

However, this evolution has its challenges. The recent bankruptcy filing of Core Scientific, a major Bitcoin miner, highlights the opportunities and obstacles in the ever-changing world of cryptocurrencies.

The bankruptcy of Core Scientific, which accounted for approximately 10% of the computing power on the Bitcoin network, may have caused some shockwaves in the industry. Still, it also serves as a reminder of the importance of being adaptable in this uncharted territory. The crypto landscape continues to grow and develop, showcasing its potential to shape the future of finance and value in meaningful ways.

A recent report from Goldman Sachs has caused quite a stir in the investment world. The report showed that Bitcoin was the top performer in January 2023, outpacing all other assets in both returns and risk-adjusted returns. The investment bank used the well-respected Sharpe ratio to measure these returns.

With a Sharpe ratio of 3.1, Bitcoin's performance was nothing short of exceptional. To put it into perspective, a Sharpe ratio between 1 and 2 is considered good, while a ratio between 2 and 3 is considered very good. This impressive showing could make Bitcoin a more appealing option for institutional investors who are cautious about high-risk investments.

It's important to keep in mind, though, that one month's performance doesn't indicate how the rest of the year will go. Despite its impressive performance, the cryptocurrency market remains highly volatile and risky. The report also highlights that the state of the economy is a crucial factor in how investors view Bitcoin.

In November 2022, FTX's bankruptcy caused a ripple of concern throughout the crypto world, leaving investors to question the safety of their investments. But amidst this uncertainty, one cryptocurrency rose to the challenge and made a miraculous recovery: Bitcoin. Despite an almost 25% drop in value in just a few days, Bitcoin has fully bounced back and even surpassed its prior value, holding steady above $23,000 since mid-January.

The crypto industry is facing a time of deep uncertainty, with recent SEC scrutiny and multiple rounds of layoffs. But despite these challenges, Bitcoin remains steadfast in its security and price, overcoming all losses since FTX's collapse.

Like many in its industry, the crypto exchange Gemini is grappling with the challenges posed by the bankruptcy of crypto lender Genesis Global Capital and the broader economic turmoil. Despite the efforts of its founders, the Winklevoss twins, to avoid layoffs, the company has been forced to make multiple rounds of cuts, including a recent reduction of 10% of its workforce.

The situation at Gemini speaks to a larger trend in the cryptocurrency market, where companies are struggling to navigate the uncertainties and volatility that exist in this rapidly evolving field. The Winklevoss twins' public dispute with Digital Currency Group, the parent company of Genesis, highlights the difficulties faced by companies operating in this environment, where large sums of money are owed, and fraud is unfortunately rampant.

As we see with Gemini, the cryptocurrency market is not immune to the larger economic forces and challenges faced by traditional finance. The ongoing turmoil in the industry serves as a reminder of the need for caution and due diligence in this young and rapidly changing field. The loss of an estimated 27,000 jobs across the industry since April of last year speaks to the broader challenges faced by companies operating in the cryptocurrency market.

The rise in crypto layoffs has reached its highest point since the Terra Luna collapse in May 2022. According to data from layoffs.fyi, the number of layoffs in the cryptocurrency industry has increased to over 2800 in January 2023, with the most significant spike occurring in the months following the Terra Luna collapse (3000 layoffs). This trend highlights the ongoing volatility and unpredictability of the crypto market and the impact it has on the companies and employees within the industry. Despite the growing interest and investment in cryptocurrencies, the industry is still faced with numerous challenges and uncertainties that have led to a wave of layoffs.

At NOAH, we are on a mission to disrupt the status quo and revolutionize the industry. We are a team of rebels, game-changers, and visionaries, and we are seeking like-minded individuals to join us in our quest for greatness. If you are passionate about Bitcoin and pushing the boundaries of what’s possible, then NOAH is your place. With opportunities in software engineering, marketing, sales, and more, we’re here for you to unleash your full potential and make a real impact in the world.

So if you're ready to ignite your career and join the most electrifying team in the industry, apply to NOAH today.

El Salvador has paid back $800 million on external bonds, proving that its adoption of bitcoin as legal tender has yet to impact its ability to repay its debt. Despite concerns and warnings from international financial organizations about the volatility of bitcoin, President Nayib Bukele's government has continued to invest in the asset. In July, they purchased 80 BTC at $19,000 each, and in November, Bukele announced that he would start buying 1 bitcoin per day as part of a dollar-cost-averaging strategy.

Bukele took to Twitter to share the news of the successful bond repayment, saying, "Well, we just paid in full, $800 million dollars plus interest." This payment was made to international creditors after the country completed its transfer of funds.

Thank you for joining us on the first of NOAH's Monthly Rollup. Keep following us for more updates, and remember to stay informed as the crypto world continues to grow and evolve. Thank you again!