$BTC 24 Hour High $41,941
$BTC 24 Hour Low $28,722
Happy Monday from HKbitEX!
So much news and so little time. BTC hit a huge milestone with another ATH of $40K and the total crypto market cap reaching above $1.02 trillion for the first time ever. We are continuously seeing more and more high-level attention from the traditional market and some regulatory breakthroughs, market sounds great and positive.
As always crypto is a volatile asset, #DYOR and trade at your own risk.
The BTC and ETH market
The BTC market was quite volatile this week. After gaining more than $6000 and reaching $40k on 7/1, BTC dropped back to $36k within the same hour and then stood at $39k. The highly volatile market has no doubt caused a huge liquidation towards all the leveraged positions which has happened couple times over the week. Meanwhile, though we reached a new ATH at the $42K level, there exists a significant resistance over the line, with bears dominate the trend on Sunday, causing a sharp correction all the way down to $35k. At the time of writing, BTC was trading at the $36k level while $34k acts as the next key support line.
ETH has had a strong week, with the market up by ~35%, reaching a 3-year ATH at $1350. What is also worth mentioning is the rapidly increasing demand towards ETH’s options market, traders are now paying high premiums on that as we saw an over 230% implied volatility on major options exchanges. At the time of writing, ETH is now trading at $1110 with $1300 as its next major resistance level and $1000 as its next key support level.
Bill Miller, Fund Manager and founder of Miller Value Partners, mentioned during his fourth-quarter Miller Value Partners investor letter that “BTC is still early in its adoption cycle.” He also refers to Warren Buffet’s bitcoin “rat posion” theory that "Bitcoin could be rat poison, and the rat could be cash."
According to a recent filling made with the SEC, Morgan Stanley now owns 792,627 shares of MicroStrategy, bringing its total ownership to 10.9%. Based on MicroStrategy’s recent action on increasing their BTC positions, the market views Morgan Stanley’s investment as a way to benefit from BTC’s price movement.
According to a Bloomberg report, Digital asset firm Bakkt is looking to go public through a merger with blank-check firm VPC Impact Acquisition Holdings (a SPAC deal). The transaction is set to value the combined entity at more than $2 billion.
DeFI wise, TVL increased to $21.78B at the time of writing. For the other pairs, Yearn Finance (YFI) has a 30% growth, Aave (AAVE) at +12%, Compound (COMP) at +21.5% and Chainlink (LINK) at +15%, just to name a few.
The Office of the Comptroller of the Currency (OCC) mentioned in an interpretive letter published last Monday (4/1) that "a bank may use stablecoins to facilitate payment transactions for customers on an independent node verification network, including by issuing a stablecoin, and by exchanging that stablecoin for fiat currency."
The cryptocurrency industry welcomed the letter and considered this as a huge win for the whole industry, which puts one step further in bridging the traditional financial systems with blockchain technology and cryptocurrencies.