$BTC 24 Hour High $49,720
$BTC 24 Hour Low $42,284
$ETH 24 Hour High $3864
$ETH 24 Hour Low $3154
Happy Monday from HKbitEX!
$BTC is down 25% and $ETH is trading down 20% from all time highs. The sell pressure was kicked off by a series of tweets by Elon Musk who suddenly had concerns about the impact of Bitcoin mining and transactions apparent use of fossil fuels. His tweets created a deep sell off as panic settled into the market. Expect high volatility in the coming days and remember to always #DYOR.
The $BTC and $ETH market
$BTC down 25%, with most of the selling happening last Wednesday when Tesla announced that they would stop accepting $BTC as a payment method. The bulls made a few trials after to re-claim the $50k level but failed to close a candle above this price point. The further correction yesterday following Elon’s tweet which states Tesla might consider selling its $BTC holdings has brought the market to an even steeper correction, causing $BTC to fall and close beneath the long-term rising trend line it has held since Feb, 2021. Investors should be also aware that a lower low is here now for $BTC, any further break could possibly bring the market back to the $40k level. At the time of writing, $BTC is now trading at $42,450 with $45,000 as its next major resistance level and $40,000 as its next key support level.
$ETH has followed in the footsteps of the overall market sentiment, trading down by 20% from last Monday. Again most of the selling happened last Wednesday, following Elon’s tweet. The sharp correction has broken the recent ascending price channel, apparently the bears are now dominating the market, especially during the weekend. While against $BTC, we still see an ascending trend that has dropped slightly, but still able to maintain above the 0.075 level. At the time of writing, $ETH is now trading at $3390 with $3500 as its next major resistance level and $3000 as its next key support level.
According to a tweet from Tesla CEO Elon Musk last Wednesday (12/5), it was announced that Tesla will suspend vehicle purchases using Bitcoin. The reason of the suspension is due to the concerns on the rapid increase of use of fossil fuels for Bitcoin mining and transactions. However, Elon added that Tesla would not be selling any Bitcoin and would intend to use it again for transactions while mining transits to more sustainable energy in the future.
MicroStrategy (MSTR:NASDAQ) announced last Friday (14/5) that the company has bought another $15 million worth of BTC, at an average price of about $55,387, which increases its $BTC holdings to a total of around 91,850, with an average price of about $24,403. The MSTR stock price closed at $521 last Friday, representing a decline of 60.4% from the February 9 trading high.
According to an article from “The Business Times” last Friday (14/5), it is mentioned that DBS Private Bank had launched a trust solution for cryptocurrencies via the bank's wholly-owned trust company DBS Trustee to allow its private banking clients to invest, custodies and manage digital assets. At the moment, the offering has been limited to only $BTC, $ETH, $BCH and $XRP, which are the four cryptocurrencies hosted on the DBS Digital Exchange. Joseph Poon, group head DBS Private Bank, also mentioned in a press statement last Friday that the Group has been seeing more interest from their clients towards cryptocurrencies and they expect this trend to accelerate giving cryptos getting more popularity and turns more mainstream going forward.
Alts & DeFi
Alts and DeFi wise, Defi TVL (Ethereum network) increases to $72.04B at the time of writing. For some well-known ones, over the week, Yearn Finance ($YFI) records a 19.21% growth, Aave ($AAVE) at +16.13%, Compound ($COMP) at -13.49%, Uniswap ($UNI) at -13.35%, Polkadat ($DOT) at -2.5%, Chainlink ($LINK) at -25.11%, Cardano ($ADA) at +17.13% and Polygon ($MATIC) at +58%.