Daily Market Update - ex-Chief, Hong Kong Monetary Authority suggests basket stablecoin- Apr 16

$BTC 24 Hour High $6,928 $BTC 24 Hour Low $6,637 $BTC -3.13%

Traditional markets finally see a correction after the recent pumps had investors scratching their heads. Overall market sentiment is showing bearish signs, backed by VIX up to 40.84 - an increase for the first time in four days - as reaction to the IMF’s forecast for an extended recovery period to the “Great Lockdown”.

Digital assets market:

  • It’s very interesting to see $BTC and the digital asset market less volatile than traditional markets, which goes to show the times we are currently in;

  • Number of confirmed transactions dropped significantly from March - dipping from 330k transactions to ~275k, a sign of more HODLing than buy/selling. More than 20k $BTC moved from exchange platforms to private wallets and stagnant trading volumes could reignite the conversation of $BTC being treated as a safe haven;

  • Digital asset market cap drops US$7B from 193->186B;

  • $BTC slid down -2.4% overnight, tested the 6,456 support level set from three days ago with a rebound back to 6600 levels. $BTC futures market wiped out 60m long positions during last night’s drop, with the bull-bear ratio at 66/34 and with shorts paying longs still. Overall 1.93B open positions across top platforms, an increase of 800M from last night. Currently trading in the bottom half of the Bollinger Bands and RSI indicating underbought levels at 40, with the MACD lines converging at the bottom, presenting an short-term buy opportunity for technical chart readers.

  • Large cap coins all in the red with only stablecoins moving up due to an increased demand from payment providers with their volumes around 80% of their capacity throughout this shortened week.

  • Desk also seeing more demand for the $BTC side from both directions as speculative buyers coming in on the low, while some large-funds off-loaded during the downtick of America’s morning trading session.

Alt markets:

  • $BNB slid the most of the top 10, down -7% to 14.6 levels after riding 4 consecutive days of gains that push from mid 13’s to 16 for the intraweek highs.

  • $BSV dropped for a second day, -5.3% overnight and overall down 18% from the height of it’s halving event on April 10th where it peaked at 214 -> 180 levels.

News that caught our eye:

  • FSB (Financial Stability Board) outlines ten recommendations to an audience of G20 countries to deal with the decentralised stable coin market (USDT, USDC, TUSD, PAX and DAI were mentioned). One of which suggested an outright ban on these coins as the central banks plan on developing and releasing their own centralised, privately-issued global stable coins.

  • The ex-Chief of the Hong Kong Monetary Authority, Norman Chan, has tabled what appears to be the first “public stablecoin” proposal (backed by HKD, RMB, KRW, and JPY) with the HKMA and PBOC. Whilst not a CBDC, this is an encouraging development coming from Asia.

Traditional markets:

  • DJI -1.8% -445 @ 23,504

  • S&P -2.2% -62.7 @2,783

  • Nasdaq -1.1% -100 @8,592

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