$BTC 24 Hour High $36,722
$BTC 24 Hour Low $34,069
Happy Monday from HKbitEX! This week has been relatively quiet compared to the last few weeks of ATHs. The market remains volatile and presents perfect opportunities for day traders giving a 15% range most days. The leveraged market was quite bloody with a couple of huge liquidations. On the other hand, Alts and DeFi outperformed BTC and ETH during the week, especially during the weekend. Though we expect the focus will be switched back to BTC and ETH shortly, we do see an increasing interest towards the alts market, all looking positive. Happy trading.
As always crypto is a volatile asset, #DYOR and trade at your own risk.
The BTC and ETH market
Another volatile week here for the BTC market as mentioned, after a failure on pushing the BTC price over $40K on Friday, it underwent a strong correction, trending all the way down to the $34K level after losing the $36K critical support and then rebounded sharply to $38K. Leveraged positions were no doubt the victims during this kind of rollercoaster trend, massive liquidations were recorded over a couple of hours, with over $400million among major exchanges. It sounds like the market was again over-leveraged as we saw some huge liquidation numbers. At the time of writing, BTC trades at $35,875 with $38K being its next key resistance and $34K as its key support level.
From an ETH perspective, it started the week trading above $1300, before it hit a sharp correction which saw it trending down to the $1000 support level. After trading in between $1000 and $1100 range for couple days, it then rebounded on Friday to around $1250. It is also worth noting that the number of ETH stored on exchanges has been gradually decreasing and showcased a massive drop during the last week, down to below 11M from around 13M in mid-2020. At the time of writing, ETH is now trading at $1188 with $1300 as its next major resistance level and $1100 as its next key support level.
Canadian digital asset manager 3iQ reported on Friday (15/1) that its Bitcoin Fund now holds more than C$1billion worth of BTC. The firm also announced one day before that the Class A Units of The Ether Fund will commence trading in Canadian dollars on the Toronto Stock Exchange on Friday, January 15, 2021 under the symbol “QETH.UN”.
Crypto Conglomerate Galaxy Digital announced on Friday (15/1) that they are launching a new business unit named Galaxy Digital Mining, which aims at offering financial services, specifically to miners. Galaxy Digital Mining also mentioned that they will be mining cryptos on their own basis.
DeFi wise, market outperformed BTC and ETH over the week with TVL increased to $24.18B at the time of writing. For the other pairs, Yearn Finance (YFI) has a 23% growth, Aave (AAVE) at +65%, Compound (COMP) at +30% and Chainlink (LINK) at +50%, just to name a few.
According to a recent press release from The Financial Crimes Enforcement Network (FinCEN), FinCEN would be providing an additional 15 days for comments on the proposed reporting requirements regarding information on CVC or LTDA transactions greater than $10,000 that involve unhosted wallets or wallets hosted in jurisdictions identified by FinCEN and providing an additional 45 days for comments on the proposed requirements that banks and MSBs report certain information regarding counterparties to transactions by their hosted wallet customers, and on the proposed recordkeeping requirements.
According to The Block, Japan's Financial Services Agency (FSA), the country's securities regulator, has confirmed that it viewed XRP as a cryptocurrency and not as a security.