Daily Market Update - April 2, 2020

$BTC 24 Hour High $6,675 $BTC 24 Hour Low $6,202 $BTC +4.4%

Digital asset markets:

  • $BTC spent most of the American session following the direction of traditional markets yesterday, but bucked that trend and started its own short run-up during the start of the Asian session (reaching 6,650 levels). Trading bands were around 200 throughout the day. 

  • $BTC dominance also increased during this time of volatility, +0.4% to 65.4%. 

  • ETHBTC has been dropping from highs of 0.027 to 0.020, a drop of -35% over the span of a month.

  • BCHBTC trading more horizontally, maintaining between 0.033 and 0.036 in the same time frame.

As we put Q1 behind us, we saw the digital asset market cap drop from ~18% (from 222B to 181B). $BTC overall dipped in the quarter but has been recovering steadily from the initial shockwaves. Some of the mid-cap altcoin performances during Q1 were also notable for their strength and weaknesses:

Best performers

  • $DASH: +56% over Q1, currently trading at $64 after opening Jan 1, 2020 at $41, established support line at $60 with $72 in target. Main highlights include their collaboration with Burger King in Venezuela and Germany, and lower transaction costs plus faster speeds to compete for daily-use cases

  • $LINK: Decentralized ERC20 token - Chainlink up +31.5% in Q1, range bound between 2-2.50 over the past two weeks, currently trading at 2.24, half of 2020’s ATH @ $5.

Weakest performer

  • $VET: Vechain dropped -39% during Q1, was up 10% in Jan 2020 which was significantly less than the average price movement based off the total digital asset’s market cap at +35%. Traded range of 0.0050-0.0080 in Jan, before tanking to lows of 0.0015 during the crash. Future prospects still looking dire as it’s currently trading at 0.0031 with little volatility and volume, bound between 0.0027-0.0033.

Traditional markets:

  • US benchmarks slide on its worst start to Q2, dropping ~4% across the board as COVID-19 tightens its grip across the US. (Dow -4.4%, SPX -4.1% and Nasdaq -4.2%)  

  • COVID-19 cases have reached >932,000 with 23% located in the US, and lockdowns have been extended globally with Italy, Germany and Pakistan announcing most recently. One US lab revealed a backlog of 160,000 test kits awaiting to be examined with wait times of 10 days or more to retrieve results. Further solidifying the case that numbers reported by the governments would be significantly underreported, making it difficult to approximate a realistic end to the pandemic. 

  • Spot gold down -0.6% to 1,585 hovering below 1,600 for the second day

  • 10 year US Treasury yields dropped to 0.577%. 

  • Fear and uncertainty increased the VIX by +3.5 points to 57 after 2 consecutive days of increased optimism over thoughts of stabilizing COVID-19 infections rates dropped it as low as 50.

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