$BTC 24 Hour High $34,288
$BTC 24 Hour Low $32,270
$ETH 24 Hour High $1379
$ETH 24 Hour Low $1289
Happy Monday from HKbitEX!
I think we can all agree that last week was #INSANE (applicable to both the stocks and crypto market). Although US stocks and Crypto are on a similar trajectory the Reddit-Robinhood-GameStop saga of the week has brought attention to the issue of democratization of finance- #HOLDTHELINE. Whilst that story unfolds, there has been a lot of criticism about the current market infrastructure and fundamentals, powering a more focused trend towards the DeFi market. Google search data indicating that the word DeFi is currently trending as a search.
As always crypto is a volatile asset, #DYOR and trade at your own risk.#HappyTrading.
The $BTC and $ETH market
The Bitcoin market was relatively volatile before Friday, mainly trading between $30K and $33K. The volatility was generally believed to be driven by the expiry of a record-breaking $3.7 billion worth of Bitcoin options on 29/1 16:00 HKT. Right after the expiry, we experienced the Elon rally, which pushed $BTC prices up to $38K with a single tweet. The rally, however, did not hold for long as it was leverage-driven, as shown by exchange data. At the time of writing, $BTC is back down to $33,600 with $34,500 as its next major resistance level and $32,500 as its next key support level.
From an $ETH perspective, price is up by around 20% compared to last week. Which currently puts the price at levels of $1300. Following its ATH last Monday, $ETH has undergone several corrections to its major support level at $1200 before rebounding to above $1400 following Elon’s #BTC tweet. At the time of writing, ETH was trading at $1316 with $1390 as its next major resistance level and $1200 as its next key support level.
Nasdaq-listed Marathon Patent Group (MARA:NASDAQ) announced last Monday that it has increased its $BTC holdings to about $150 million with an average buy in price of around $31,135. The transaction was executed by Crypto financial services firm NYDIG.
Andy Weissman, Managing Partner of Union Square Ventures, the venture capital firm, who well known for bets on Twitter, Tumblr and Coinbase, mentioned in his blog that the firm has planned to invest around 30% of its new $250m fund in to the crypto industry.
Ray Dalio, Founder and Chief Investment Officer of Bridgewater Associates wrote in the column Bridgewater Daily Observations — the firm's daily newsletter sent by the CIOs to its clients that he believed that $BTC was one hell of an invention. He also added that he “Expects Bridgewater to soon offer an alt-cash fund and a storehold of wealth fund in order to better deal with the devaluation of money and credit that we consider to be a major risk and opportunity, and bitcoin won’t escape our scrutiny.”
DeFi wise, market continues to outperform $BTC over the week with $TVL remaining at the $26.5B level at the time of writing. For the other pairs, Yearn Finance ($YFI) records a 7% drop, Aave ($AAVE) at +11%, Compound ($COMP) at +45%, and Chainlink ($LINK) at -10%, just to name a few.