$BTC 24 Hour High $45,167
$BTC 24 Hour Low $42,981
$ETH 24 Hour High $3174
$ETH 24 Hour Low $2908
Happy Monday from HKbitEX! What a fantastic week it’s been for crypto investors. The overall market has risen by around 10%, with some alts outperforming following Ethereum’s London Hard Fork Upgrade. Additionally, the proposed US infrastructure bill has unexpectedly become a hot topic among the crypto community, due to two amendments (introduced by Lummis-Wyden-Toomey and Warner-Portman, respectively) debating the definition of the “broker” category. We continue to see new traditional names and a new ETF filing in the market, this time from Invesco, the asset management giant. Market-wise, traders appear optimistic from a technical perspective as all major indicators, on-chain data and sentiment have been trending higher. No matter the direction is, it’s always a good practice to set your stop-loss before sitting back and enjoying the show.
The $BTC and $ETH market
$BTC increased by around 10% over the week, initially falling beneath the ascending triangle on Monday and hitting a low of $37,500. This downward trend then reversed, with the bulls stepping in right before the Ethereum London upgrade, leading to a swing up past $40,000 towards the $45k level (200-day MA). As expected, consolidation was seen around the $45k level which acted as the heavy resistance zone. Despite this, all of the main indicators, on-chain data and momentum have been trending higher. Notwithstanding this positive momentum, the bulls are accumulating and a potential retest of the 200-day MA could happen anytime this week if the $43k level can be defended. At the time of writing, $BTC is trading at $43,519 with $45,000 as its next major resistance level and $40,000 as its next key support level.
$ETH-wise, the second largest cryptocurrency recorded an impressive 20% gain over the week, representing a total gain of 38.6% over the past 2 weeks. Undoubtedly the London upgrade has acted as a catalyst for the surge, and we already have around 16,456 ETH (~48m USD) being burnt since the Upgrade. Similarly to $BTC, $ETH consolidated at the $3,200 level during the weekend, however, traders generally viewed the consolidation as a positive move towards sustainability of the market recovery, especially. after a period of long-term over-buying. Meanwhile, $ETH has outperformed $BTC last week, with the index hitting the highest of 0.073 on the day of the London Upgrade - from the 0.064 level on Monday $ETH is now trading at 0.067. At the time of writing, $ETH is trading at $2,917 with $3,200 as its next major resistance level and $2,800 as its next key support level.
According to the report by The Street last week (1/8), hedge fund Goldentree, with $41 billion of assets under management, added bitcoin to its balance sheet. Goldentree also invested in the venture capital group Borderless Capital to explore leveraging Algorand technology.
According to a filling with U.S. Securities and Exchange Commission last Wednesday (4/8), Victory Capital has applied to list an ETF tracking the Nasdaq Crypto Index (NCI) which consists of eight cryptocurrencies, namely Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Chainlink, Stellar Lumen, Filecoin and Uniswap.
According to another filling with U.S. Securities and Exchange Commission (SEC) last Thursday (5/8), Invesco is planning to launch an ETF investing in Bitcoin futures and exchange-traded products (ETPs), stating, “The fund also plans to invest its remaining assets directly in cash, cash-like instruments, or high-quality securities as part of collateral investments… The collateral is designed to provide liquidity, serve as margin or otherwise collateralize the subsidiary’s investments in Bitcoin futures.”.
The Financial Times reported last Thursday (5/8) that the French asset manager Melanion Capital will launch the first EU-regulated bitcoin ETF. This fund will track more than 30 stocks in cryptocurrency mining and blockchain technology sectors, but will not hold bitcoin directly. "Most pipes of the traditional financial system stop at access to bitcoin," said Melanion CEO Jad Comair, continuing, "The ETF was a real challenge because of the sensibilities and politics currently surrounding bitcoin and bitcoin investing.".
Alts & DeFi
Alts and DeFi-wise, Defi TVL (Ethereum network) increases to $78.21B at the time of writing. For some well-known tokens, over the week, Yearn Finance ($YFI) recorded 0.29% growth, Aave ($AAVE) is +12.27%, Compound ($COMP) is +18.57%, Uniswap ($UNI) is +19.55 %, Polkadot ($DOT) is +5.09%, Chainlink ($LINK) is +3.98%, Cardano ($ADA) is +6.91% and Polygon ($MATIC) is +3.68%.