$BTC 24 Hour High $52,825
$BTC 24 Hour Low $47,159
$ETH 24 Hour High $2485
$ETH 24 Hour Low $2172
Happy Monday from HKbitEX!
It hasn’t been the most stellar week for global investors, applicable in stocks and the digital asset market. President Bidens proposed change to the US tax code last Thursday no doubt brought some significant consequences to the overall market.
The crypto RSI and Fear & Greed Index showed a level of panic amongst investors. Views of the public are also clearly divided between optimistic and defensive. Personally, I feel there is a lack of clear signals but we are still in a bull market.
In the words of Warren Buffett, ‘Be fearful when others are greedy and to be greedy only when others are fearful,’ as always #DYOR, read the market, always trade with a stop-loss and #NOFOMO
The $BTC and $ETH market
$BTC trading significantly lower than last week, in between $47,000 and $57,500. Friday and Sunday saw the market dumping in reaction to President Biden’s proposed change to the US Tax code which includes a plan to nearly double capital gains tax to 39.6% for people earning more than US$1m, pushing the price to $47K levels.
Overall we saw the market panic as RSI touched 25 and the Crypto Fear & Greed Index at its lowest levels this year. However, remember corrections are healthy within a bull cycle, as the market has closed green for 6 consecutive months already.
There are some volatile signals for the crypto market. As at the time of writing, $BTC is already up by ~5% now trading at $52,343 with $55,000 as its next major resistance level and $50,000 as its next key support level.
$ETH wise, it was the first time that we saw a correlation between the hourly $BTC and $ETH pricing at only 10% over the last week. Unlike $BTC, $ETH had a relatively strong week, touching a new ATH at $2641. To be more specific, ETH/BTC has been trading nearly highest at 0.048 last week, currently at 0.046, clearly outperforming $BTC. At the time of writing, $ETH is now trading at $2462 with $2540 as its next major resistance level and $2150 as its next key support level.
According to the announcement from the Office of the Comptroller of the Currency (OCC) last Friday (23/4), it has granted preliminary conditional approval to Paxos National Trust, New York after thorough review of its application. It was also mentioned that PAXOS has up to 18 months to execute its business plan in order to fulfil the conditional approval. The new business plan includes a range of services associated with digital assets that are permissible for a national bank, including custody services for digital assets; custody and management of USD stablecoin reserves; payment, exchange, and other agent services; other cryptocurrency services, such as trading services and enabling partners to buy and sell cryptocurrency; and “know your customer” as a service.
PayPal’s Venmo mobile payment app announced last Tuesday (20/4) that Venmo would allow users buy and sell cryptocurrencies on its platform. Currently Venmo supports four digital assets, including Bitcoin (BTC), Bitcoin cash (BCH), Ethereum (ETH) and Litecoin (LTC), with a min. investment requirement of $1. With more than 70 million users, “Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have,” said Darrell Esch, a senior vice president and general manager of Venmo.
New York-based Signature Bank, mentioned in Circle’s announcement saying Circle would be integrated into Signature’s blockchain-based real-time payments platform, Signet, which will allow for future integrations of Circle products and services. The bank, further reported last Wednesday (21/4) that they would soon start offering its crypto clients bitcoin-backed cash loans. DePaolo, CEO of Signature, mentioned that “We want it to be a zero-loss business and so we’re only going to have it for the very, very best clients. We also want to have the ability to liquidate quickly, and we won’t negotiate on margin or liquidation provisions.” According to Signature’s report, the bank added 110 crypto customers for a total of 740 customers from the industry, and had a total of $10 billion deposits from crypto customers from last quarter.
Alts & DeFi
Alts and DeFi wise, Defi TVL (Ethereum network) increases to $58.65B at the time of writing. For some well-known ones, over the last week, Yearn Finance ($YFI) records a 28.21% decline, Aave ($AAVE) at -16.32%, Compound ($COMP) at +17%, Uniswap ($UNI) at +7.07%, Polkadat ($DOT) at -18.13% and Chainlink ($LINK) at -21.5%. While for some well-performing ones, we have Solona ($SOL) at +46.2%.