Price Indexes

How does a stock’s price-to-earnings ratio relate to cryptocurrencies?

Cointelegraph analyst and writer Marcel Pechman explains how price-to-earnings ratios relate to cryptocurrency markets.

The show Macro Markets, hosted by Marcel Pechman, which airs every Friday at 12 pm ET on the Cointelegraph Markets & Research YouTube channel, explains complex concepts in layman’s terms and focuses on the cause and effect of traditional financial events on day-to-day crypto activity.

In today’s episode, crypto analyst Pechman looks at the price-to-earnings ratio (P/E), which is the main way stocks are valued and how it relates to cryptocurrency markets. For example, one should try to avoid times when the P/E expectations stay the same or are going down.

Viewers will learn how the ups and downs of the S&P 500 P/E are like the peaks and valleys of cryptocurrencies and why this indicator can go down even if the stock market stays the same.

The episode goes on to explain why a crypto trader should care about the $8.3-trillion balance sheet of the United States Federal Reserve. People who used this sign to buy Bitcoin (BTC) paid an average of $8,300, but just six months later, the price had risen to $14,000.

Pechman explains why the Fed adds to or takes away from its reserves, which are mostly made up of U.S. dollars, government bonds, gold and foreign currencies. Then it talks about how the market tends to pay too much attention to decisions about interest rates.

To close the Macro Markets show, there is a quick review of how to use the P/E estimate and the Fed balance sheet data to trade crypto in a simple, non-technical way.

If you are looking for exclusive and valuable content provided by leading crypto analysts and experts, make sure to subscribe to the Cointelegraph Markets & Research YouTube channel. Join us at Macro Markets every Friday at 12:00 pm ET.

Nifty News: Jimmy Fallon wants exemption from BAYC trademark case

Jimmy Fallon wants out of the BAYC trademark case, while Blur is responsible for the NFT market’s three-month high.

Lawyers for Jimmy Fallon, star of NBC’s long-running comedy and variety series The Tonight Show, have filed a petition to “quash” a subpoena requiring him to testify in the Yuga Labs Inc. v. Ripps et al. case.

The lawyers claim that Fallon has no connection to the dispute, is not a party to the Ripps litigation, and has never met or interacted with Ryder Ripps, creative director of OKFocus or Jeremy Cahen, one of the founders of the alleged Bored Ape Yacht Club (BAYC) “copycat.”

Yuga Labs is suing Ryder Ripps and Jeremy Cahen for issuing a “copycat” nonfungible token (NFT) collection that resulted in trademark infringement, false advertising and unfair competition. The ongoing case has highlighted intellectual property and trademark rights within the NFT space.

While Fallon acquired a Bored Ape Yacht Club NFT and talked about it on his show, he has nothing to do with the Yuga Labs and Ripps case, according to the petition.

Fallon is also a co-defendant with Paris Hilton in a separate securities litigation involving Yuga Labs.

Getty Images and Candy Digital to sell NFTs from Archives

Getty Images is partnering with NFT platform Candy Digital to offer rare photos in NFT form, starting with photographs from its 1970s music and culture collection.

In a tweet, Candy Digital revealed that the collection includes works by Don Paulsen, David Redfern and other photographers depicting iconic figures like Elvis, David Bowie and The Rolling Stones.

*Photos from the recording 70’s image collection*

The NFTs will be available for purchase on Candy Digital’s website starting on March 21, with prices ranging from $25 to $200. The release will be available to buyers in several countries, including the United States, the United Kingdom and Japan.

This partnership comes as the NFT market shows signs of growth, with marketplace volume increasing for the fourth consecutive month in February.

Forkast launches NFT price tracker indices

Forkast Labs, a data intelligence service formed by the merger of Forkast.News and NFT market tracker CryptoSlam, has launched a series of NFT indexes to provide real-time insights into the digital asset economy.

The Forkast 500 NFT index will measure performance across 21 blockchains, including Ethereum, Solana, Polygon and Cardano, and is designed to be a proxy of the entire NFT market.

*Forkast 500 NFT index tracks the performance of the global NFT market.*

The indexes aim to provide a more comprehensive measure of the health of the NFT economy, which is difficult to discern using traditional market rankings based on prices, sales and transaction volumes.

NFT market hits 3-month high as Blur responsible for high trades

The NFT market is experiencing a bullish trend, according to data derived from NFT tracker CryptoSlam, reaching a 3-month high for the second consecutive day with over 125,000 trades in the past 24 hours. Trading surpassed $2.04 billion last month, up 117% from $941 million in January.

This growth is due to Blur, an evolving market that surpassed OpenSea in trading volume just this month.

Blur’s trading volume jumped over $1.13 billion in February from the month prior, a statistic that accounts for almost all of the entire NFT market’s month-over-month gains.

Goldman Sachs creates digital asset taxonomy system for subscribing investors

The financial services giant, along with Coin Metrics and MSCI, will help investors track market movements and screen hundreds of coins and tokens by their uses.

Goldman Sachs, MSCI and Coin Metrics announced on Nov. 3 that they have devised a digital assets classification system to increase the transparency of market movements and help market participants analyze the digital assets ecosystem. The new system is called “Datonomy” and is available by subscription from the three companies.

The new taxonomy divides the digital assets world into classes, sectors and subsectors according to their use to make it possible to view those assets in a more granular way, a Goldman Sachs spokesperson told CNBC. The system is intended to provide a consistent view of the market, screen assets using different filters and help market participants “understand aggregated properties of these assets at the portfolio level,” according to a statement.

We are thrilled to introduce datonomyᵀᴹ – a new classification system of digital assets made possible through the strategic collaboration of Coin Metrics, Goldman Sachs and MSCI.

This new taxonomy is offered as a data service by Coin Metrics, Goldman Sachs and MSCI. pic.twitter.com/CDtVcYDaU1

— CoinMetrics.io (@coinmetrics) November 3, 2022

Coin Metrics CEO Tim Rice said in the statement, “This collaboration represents a significant leap forward for the industry as a whole, establishing a coherent and future-proof structure to monitor and analyze the digital assets ecosystem.” Coin Metrics provides crypto reporting and analytical software.

MSCI, a provider of critical decision support tools for investors, is the owner and sole administrator of the system. MSCI announced in a separate statement that it has launched a series of new indexes using Datonomy in collaboration with Menai Financial Group and Compass Financial Technologies.

Swiss-based Compass is the publisher of the “Compass Crypto Basket Fundamental DeFi Index” and other crypto indexes. It created single-digital-asset indexes based on MSCI’s new indexes.

The new MSCI indexes will chart top 20 and top 30 digital assets by market cap, assets that do not rely on proof-of-work consensus and assets “associated with technology platforms supporting ‘Smart Contracts’ features.” The indexes are the first of their kind for MSCI.

Binance CoinMarketCap Index Series kicks off by tracking top 10 cryptocurrencies

Starting in November 2022, Binance’s Top 10 Equal-Weighted Index will be available to investors through Auto-Invest, to track the performance of the top 10 cryptocurrencies.

Crypto exchange Binance announced that it will launch its first index product, the Top 10 Equal-Weighted Index, to kick off its Binance CoinMarketCap Index Series.

The Top 10 Equal-Weighted Index will monitor the performance of the industry’s top 10 cryptocurrencies by market capitalization, including Bitcoin (BTC) and Ether (ETH). Binance’s indexes will utilize pricing information from crypto price tracker CoinMarketCap, which the crypto exchange owns.

According to the announcement, the Equal-Weighted Index will be rebalanced monthly and is designed to help investors evaluate price and performance. The index products, beginning with the Top 10 Equal-Weighted Index, will be available to investors starting in November 2022 through Binance’s Auto-Invest service.

Binance said that the community can expect more from the index series in the future, which will encompass “more digital assets in a diverse set of products.”

Despite a long, harsh crypto winter, Binance and other major crypto-industry giants have been developing their service offerings to the broader community.

A recent Q3 2022 report from Web3 development platform Alchemy reported that this year could be the biggest year ever for development in the Web3 space.

Binance recently expanded its service offerings in multiple markets around the world. On Oct. 6, Kazakhstan granted the exchange a permanent license to offer digital asset services, while in the Middle East, it reported a 49% surge in regional user sign-ups in 2022.

This recent announcement of the price index tools comes as the network completed its 21st quarterly BNB (BNB) burn, which eliminated roughly $547 million worth of the coin from its supply.