Daily Market Update - April 20, 2020, DeFi exploit, dForce suffers $25M Hack

$BTC 24 Hour High $7,285 $BTC 24 Hour Low $7,056 $BTC -1.39%

Traditional markets slightly retracted as of early Monday (East Asia time) in anticipation of what will probably be a busy week as another round of corporate earnings and new economic data comes to light.  On the COVID19 front, fatalities might have reached its highest point according to governor Cuomo, however, social distancing efforts should not be loosened according to a recent statement. Germany is preparing for a limited reopening.  Investors will now need to factor in the outcomes of such attempts by multiple nations to return to normalcy in the upcoming weeks.

Digital assets market:

The slight pullback that is being seen in equities was also felt in the digital assets market.

It was an overall slow weekend with tapered volumes and lower volatility. $BTC closed with a slight loss (down 1.39%) as it stopped, at least momentarily, just shy of the $7,400 resistance that proved to be relevant during the first week of April. The rest of the industry is following $BTC’s steps as 78 out of the top 100 coins are in the red in the last 24 hours but none with a loss higher than -4.6%. Bitmex open interest is still below the $500M mark and now at $487M.

The total digital asset market cap is down -1.44%, from $207B to $204B and still in the same range it held during the weekend. $BTC traders are now waiting for $7,400 to finally give in or otherwise we could be up for a range-bound week with a probable floor in the $6,400 zone, price where we saw bulls step in last Thursday. 

Spot volume has been constantly declining as $BTC inched up since mid March, a warning sign that has to be taken into account but not as a one-off indicator. Other technical indicators such as MACD and StochRSI are showing neutral signals but leaning bearish as momentum is stopping.

Alt markets:

  • On the alt side of things $XMR (+1.16%), $XZC (+11.2%), and $ZEC (+12.5%) showed signs of life;

  • ETHUSD now reached the $190 mark but it retraced slightly more than $BTC as it is now trading at $182 while ETHBTC is down 1.8% and trading at .0254; and 

  • Aside from the ones mentioned previously, other notable movements include $NMR +14.4% and $DASH +3.44% on the upside, and ALGO -4.26% and BSV -3.21% on the downside.

Traditional markets:

SP500 futures are down -0.79% as of this morning after a +2.71% run last Friday, Nikkei 225 and Hang Seng futures are following with a -0.2% and -0.3% drop respectively.

  • DOW @ 24,242 as of last Friday

  • S&P500 +3.35% @2,846

  • NASDAQ @8,650 as of last Friday

News that caught our eye:

  • Stablecoins might soon enjoy taking the digital assets main stage: CMC shows a 40% increase in market cap of the top stablecoins of the industry.

  • Recent regulatory filings reveal that Renaissance Technologies is thinking about digital assets as its Medallion fund now has been given the greenlight to enter CME’s cash settled $BTC futures market.

  • In another DeFi exploit, decentralized finance protocol dForce suffered a $25M loss, over 99% of its assets, this Saturday.

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