$BTC 24 Hour High $57,520
$BTC 24 Hour Low $53,238
$ETH 24 Hour High $2276
$ETH 24 Hour Low $2045
Happy Monday from HKbitEX!
This weekend has been a rollercoaster of a ride for digital assets following the largest single day correction (in $USD) we have ever seen. Several reasons we can see that has caused this large scale sell off, over leveraging and Coinbase sell off being large contributing factors.
In the words of legendary trader, Richard Dennis –“You have to minimize your losses and try to preserve capital for those very few instances where you can make a lot in a very short period of time. What you can't afford to do is throw away your capital on suboptimal trades." So, again, #DYOR and no #FOMO.
The $BTC and $ETH market
$BTC started the week strong in parallel to the largest direct listing on Nasdaq – $COIN (Coinbase), mainly trading between $60k and $65k. Optimism towards the market has also been reflected on the Future market’s funding rate. The range for which has been between 0.05% and 0.1% since April 10.
Overall the Coinbase listing definitely created some hype for the market however is currently trading below what the futures market had expected. Coupled with the sudden bitcoin mining hash rate drops due to blackouts instituted in China, cryptocurrency payments being banned in Turkey and the rumour which says USD Treasury department will charge several financial institutions for money laundering using crypto, has caused the market to retreat into a bearish state.
Where weekends already provide for limited liquidity, the over-leveraged $BTC market made for increased volatile trading conditions resulting in one of the ugliest drops ever for the crypto market.
$BTC dropped straight down from $59k to $51k, with overall liquidation touching $10 billion for the first time in 24 hours, the largest single liquidation being $68.73 million for a Binance $BTC trade. The market recovered soon after the weekends bloodbath in line with resumed banking operations. At the time of writing, $BTC is now trading at $56,731 with $58,500 as its next major resistance level and $53,500 as its next key support level.
Over the weekend, $ETH also followed in the footsteps of $BTC, but started the week even stronger – reaching new a ATH of $2547, following the successful Berlin upgrade. A side note regarding the upgrade, it consists of four Ethereum Improvement Proposals (EIP) — EIP-2565, EIP-2929, EIP-2718 and EIP-2930, which aims at optimizing the usage of gas fees and improving on the security of the network, in the meantime preparation for the London upgrade which is set to take place in July or August is underway.
Due to the $BTC reset, $ETH also recorded a 16% correction to $1900 where it found support and rebounded back above $2000. At the time of writing, $ETH is now trading at $2250 with $2300 as its next major resistance level and $2100 as its next key support level.
For sure we have to include the first day of Coinbase publicly trading as $COIN on Nasdaq last Wednesday (14/4). $COIN closed with the price of $328.28 (initial reference price being $250) for its first trading day, which brought its end-of-day valuation to approximately $85.7 billion, after taking its fully diluted capitalization of 261.3 million shares of common stock into account. The $COIN stock price closed at $342 last Friday, representing a growth of 36.8% from its initial reference price.
Hashdex (the asset managing firm of HASH11) announced in a letter to its clients that it has to postpone its ETF debut date from April 22 to April 26, due to the fact that the state backed bank - The Bank of Brazil (Banco do Brasil), will be joining in offering its customers the possibility of buying the crypto ETF. This also marks the first public bank in the world in offering such kind of exposure.
According to an announcement made by Grayscale CEO Michael Sonnenshein last Tuesday (13/4), Grayscale will work with TIME Magazine in releasing a series of educational videos this summer, hoping to teach more people about the relatively new technology. In addition, the publication will start accepting payment in $BTC as well as holding $BTC on its balance sheet.
Alts & DeFi
Alts and DeFi wise, Defi TVL (Ethereum network) remains at around $52B at the time of writing. For some well-known ones, Yearn Finance ($YFI) records a 15.19% growth, Aave ($AAVE) at +4.89%, Compound ($COMP) at +10.59%, Uniswap ($UNI) at +5.54%, Polkadat ($DOT) at -10.89% and Chainlink ($LINK) at +16.29%.