$BTC 24 Hour High $58,847
$BTC 24 Hour Low $56,141
$ETH 24 Hour High $3146
$ETH 24 Hour Low $2860
Happy Monday from HKbitEX!
It’s been a revitalizing week for the markets, BTC has recovered more than 20% and ETH continues running at a high, not to mention the crazy alts market – it truly is #ALTSEASON!
This week has bought another bought of institutional adoption, Korean online game provider, Nexon has joined the show, with their $100m investment into Bitcoin, Paxo’s new $300m raise and impressive $2.4b valuation and JP Morgan’s potential launch of its own actively managed Bitcoin fund.
All very positive signals towards the market. However, that said, the market has a history of high volatility. Always reserve capital for the dips and mind your own risk .
#DYOR and no #FOMO.
The $BTC and $ETH market
$BTC showing a recovery trend this week, starting with its rebound last Monday from $49K reaching $54K. It’s had a healthy correction trading around the $52K level before riding straight up to above $58,000 and mainly trading there over the weekend. What also came to my attention was the message from U.S. Federal Reserve Chairman Powell which states that the inflation levels would be allowed to run above 2% for some time, which was also indicated in the current 10 Year TIPS/Treasury Breakeven Rate at 2.42%, for the first time in over eight years. Powell’s message, together with the 10 year treasury breakeven rate tells us the market is expecting an increasing inflationary rate.
This phenomenon could mean a positive signal for the digital assets market, as per what MicroStrategy (NASDAQ:MSTR) CEO Michael Saylor described, "we really felt we were on a $500M melting ice cube," corporate treasuries would need to find new ways in protecting their assets and Bitcoin could be an interesting option to them. In addition while we have a look at $BTC’s NVT Golden Cross, the current level is at a yearly low (beneath –2), which suggests “huge upside potential” for BTC’s price. At the time of writing, $BTC is now trading at $58,000 with $60,000 as its next major resistance level and $56,000 as its next key support level.
$ETH wise, the market obviously outperformed others last week. It started last Monday with $2300 and closed seven consecutive green candles beyond $3000, an over 30% growth rate. $ETH is now at its ATH ($3109), and continually breaks the record. The market cap of $ETH is now over $340 billion, which has surpassed prominent names like PayPal, Toyota Motor Comp., Coca-Cola Company, Inter, Netflix, and more. It might also be interesting for us to have a look at the $ETH funding rate and the $ETH/$BTC market. The $ETH funding rate has been stable at a relatively low level despite the bull run, that could be a clear message that recent bid flow is from spot rather than the leverage markets. While for the $ETH/$BTC market, it is now trading beyond 0.053, which is the highest since 2019. At the time of writing, $ETH is now trading at $3086 with $3150 as its next major resistance level and $2900 as its next key support level.
According to CoinDesk last Monday (26/4), JPMorgan, the largest bank in the U.S., is preparing to offer an actively managed bitcoin fund to its private wealth clients with NYDIG being JPMorgan’s custody provider. It also mentioned that the fund could launch as soon as this summer.
The European Investment Bank (EIB) announced in its public release last Wednesday (28/4) that it has launched a digital bond issuance on the Ethereum protocol, deploying this distributed ledger technology for the registration and settlement of digital bonds, in collaboration with Goldman Sachs, Santander and Societe Generale. It was also mentioned that “This transaction consists in the issuance by the EIB of a series of bond tokens on a blockchain, where investors purchase and pay for the security tokens using traditional fiat. The Joint Lead Managers will then settle the underwriting against the issuer using a representation of central money, the Central Bank Digital Currency (CBDC). The principal is expected to be repaid in commercial fiat at maturity.”
Nexon CO Ltd (3659:JP), another listed company and global online game giant, announced last Wednesday (28/4) that it had acquired 1,717 Bitcoins at an average price of about $58,226 each, including fees and expenses, marked a total $100 million purchase. The objective of the purchase is to hedge against inflation, according to Owen Mahoney, President and CEO of Nexon. The CEO also added that his firm believed bitcoin offers "long-term stability and liquidity" while also maintaining the value of its cash for future investments.
According to Decrypt, a new legislation in Germany has enabled managers of the most popular institutional investment funds, the so-called Spezialfonds, to allocate 20% of them to crypto-assets is set to come into force on July 1. This set to be a huge news to the German financial market, as per mentioned by Sven Hildebrandt, CEO of Germany-based Distributed Ledger Consulting (DLC), “Around €1.2 trillion ($1.8 trillion) is invested into Spezialfonds, which have fixed investment conditions,” and “right now, 0% of the funds are invested in cryptocurrencies, because they're just not allowed.”
Alts & DeFi
Alts and DeFi wise, Defi TVL (Ethereum network) increases to $68.8B at the time of writing. For some well-known ones, over the last week, Yearn Finance ($YFI) records a 31.92% growth, Aave ($AAVE) at +59.27%, Compound ($COMP) at +54.8%, Uniswap ($UNI) at +38.03%, Polkadat ($DOT) at +30.51% and Chainlink ($LINK) at +33.08%.