$BTC 24 Hour High $36,914
$BTC 24 Hour Low $35,310
$ETH 24 Hour High $2807
$ETH 24 Hour Low $2659
Happy Monday from HKbitEX! The market may be quiet this week with the majority of crypto traders in Miami for the Blockchain Week held there. While we are again seeing new tweets from Elon Musk, we have in the meantime spotted new commitments from investors, as well as recognition from El Salvador’s President Nayib Bukele. With all the Fud around, the crypto market remains highly volatile, but we do see some sunshine coming through. Most importantly, DYOR, set your own stop-loss, and stay away from leveraged trading.
The $BTC and $ETH market
$BTC has done quite well since the beginning of last week. After another week of dumping, $BTC recovered from its previous low of $34k and has gained traction, with the bull momentum pushing the market to a six-day high of $39,500. However, $BTC’s failure to break above $40k, together with Elon Musk’s controversial “heartbreak” tweet has added to public panic. The market weakened immediately after the tweet and testing $34,500, where it gained support. Over the weekend, $BTC largely traded between $35k and $38k, an interesting phenomenon due to its recent pattern of weekend selloffs. At the time of writing, $BTC is trading at $36,400 with $38,000 as its next major resistance level, and $33,500 as its next key support level.
$ETH wise, following the $BTC trading pattern, the market started well, rebounding from the Monday $2250 support level and hitting a high of $2891 on Thursday. $ETH is now trading in an ascending triangle pattern and has officially broken the falling trend line established in the previous couple weeks. What is a bit more interesting is that when we look into the $ETH/$BTC pair, the market is now at 0.076, up from the previous $0.055 low. At the time of writing, $ETH is trading at $2775, with $2890 as its next major resistance level, and $2550 as its next key support level.
According to a press release from Standard Chartered last Wednesday (2/6), SC Ventures, the innovation and ventures unit of Standard Chartered, and BC Technology Group (BC Group), (00863.HK), have partnered to establish a digital asset brokerage and exchange platform for institutional and corporate clients in the UK and Europe. The joint venture is expected to launch in the fourth quarter of 2021, subject to regulatory approvals.
At a news conference in San Salvador last Sunday (June 6), El Salvadoran President Nayib Bukele stated that he was trying to make bitcoin legal tender in his country, which would make El Salvador the first country in the world to take such a step. According to his Twitter, Bukele added that “adopting bitcoin could benefit El Salvador by bringing economic investment from crypto acolytes and providing an accessible financial platform for Salvadorans who don’t have a bank account, i.e., about 70% of the population.” There have been a number of criticisms as many details of the plan are not clear. However, there is still a high probability that the proposal may come to fruition as Bukele’s party had landslide victories in the recent legislative elections and now controls the country’s Congress.
According to a press release from Blockstream, a bitcoin infrastructure firm last Sunday (6/6), it will work together with Square, a financial payment company in building an open-source, solar-powered Bitcoin mining facility at one of Blockstream’s Mining sites in the United States. According to Blockstream, “The facility, where Square intends to invest $5M in, will be a proof-of-concept for a 100% renewable energy Bitcoin mine at scale, with the economics of the build-out—including operational costs and ROI—made open to the public”.
Alts & DeFi
Alts and DeFi wise, Defi TVL (Ethereum network) has increased to $67.87B at the time of writing. Movements for some well-known tokens: over the week, Yearn Finance ($YFI) recorded 3.77% growth, Aave ($AAVE) is +17.05%, Compound ($COMP) is +2.08%, Uniswap ($UNI) is +4.64%, Polkadat ($DOT) is +23.33%, Chainlink ($LINK) is +3.45%, Cardano ($ADA) is +5.52% and Polygon ($MATIC) is -6.59%.