$BTC 24 Hour High $46,848
$BTC 24 Hour Low $43,241
$ETH 24 Hour High $1455
$ETH 24 Hour Low $1300
Happy Monday from HKbitEX!
It’s been a week with consecutive corrections happening, pushing the market back to the early February interval. This might have caused some panic to any new joiners but a familiar story to our legacy crypto traders.
Whilst this appears to be a normal phenomenon for a nascent asset class like cryptocurrencies to experience large upward swings followed by large downside corrections, it remains to be seen whether this is the end of the bull run or just a quick pause to gather more momentum for another bull run.
As always crypto is a volatile asset class trade at your own risk and #DYOR.
The BTC and ETH market
$BTC started last week with an ATH but ended with an over 24% correction. The daily RSI shows the bears are now in full control of the market momentum, especially when the market broke its $44,000 major support. On the leverage market side, we have the highest amount of liquidations last Monday at nearly $6 billion, compared to the previously $4.1 billion high back in March last year. At the time of writing, $BTC is currently trading at $46,392, with $48,000 as its next major resistance level and $42,000 as its next key support level, however failure to hold here might send $BTC below $40K.
$ETH similarly, started the week with an ATH and ended with an over 30% correction. The situation was even worse for $ETH as it has broken the ascending price channel and dropped to lowest $1380. At the time of writing, $ETH is now trading at $1444, the $1400 level remains a very critical level for its ongoing momentum, if it can hold there, we will see $1500 as its next major resistance level and $1200 as the major support level if it fails to do so.
Coinbase has filed for a direct listing (meaning its shares are to be directly sold to the public without an intermediary) on the Nasdaq under the symbol “COIN” to bring shares to the public market. There is not yet an official date for the IPO, however shares sold via Nasdaq Private Markets were most recently valued at $373, which equals a valuation of about $100 billion.
According to documents filed last Thursday with the U.S. Securities and Exchange Commission (SEC), Arca, the cryptocurrency hedge fund is launching a Bitcoin Trust product. The trust product, which directly competes with Grayscale, sets $25k as its minimum, compares to Grayscale’s $50k minimum. Other details, including fee structures are currently not available.
According to a recent announcement by Rakuten, the Japanese e-commerce and business giant last Wednesday, it is mentioned that the company would be the first one in Japan, allowing users of its Rakuten Wallet crypto wallet and exchange platform to top up their e-pay accounts using bitcoin ($BTC), ethereum ($ETH) and bitcoin cash ($BCH). It is expected that the service would be fully operational in spring this year and relevant crypto transactions would be restricted to a minimum of around US$9.50, with a maximum monthly limit of US$950,000.
We’re at the end of the 2 year case between Crypto firms Bitfinex, Tether and New York Attorney General’s (NYAG’s) office. The case relating back to April 2019 when the NYAG's office alleged that Bitfinex used Tether's funds to secretly cover $850 million loss to payment processor Crypto Capital, while in turn raised concerns on whether USDTs were " backed '1-to-1' by USD held by Tether in a bank account. As the case unfolded and finally came to an end, Bitfinex and Tether have agreed to pay $18.5 million in settlement penalties to the state of New York. In the meantime, Tether has volunteered to provide the NYAG's office and the public a quarterly update on USDT's reserves backing.
In the world of DeFi, following the weak market momentum, $TVL dropped to around $36.5B at the time of writing. For the other pairs, Yearn Finance ($YFI) records a 27.4% drop, Aave ($AAVE) at -17%, Compound ($COMP) at -8%, Uniswap ($UNI) at -21% and Chainlink ($LINK) at -28%, just to name a few.