Daily Market Update - April 22, 2020

$BTC 24 Hour High $6,934 $BTC 24 Hour Low $6,834 $BTC -0.37%

Traditional equities dropped for the second consecutive day, driven by crude futures which continue to plummet with WTI June contracts closing at $11.57 (-48%)  a day after May contracts traded in negative territory - an unprecedented cotango event due to the excess of supply and scarcity of available storage, particularly  in Cushing, where the bulk of the WTI contracts are physically delivered.

More uncertainty looms regarding COVID-19 in the US as Georgia becomes one of the first states to publicly announce plans to ease the social distancing measures, including opening restaurants, gyms and movie theatres. Questions abound over their motivations and whether this will set the dominos in motion for other states to do the same.

Digital assets market: 

  • Remains tame relative to traditional markets this week, once again fuelling the conversation around decoupling. Expecting more volatile markets as we approach the upcoming halving event in mid May.

  • $BTC maintained a steady $100 trading range (6,800-6,900), trading just below its 20 day moving average line for the past two days. 

  • $BTC futures volumes doubled to 13B after a three day decline, Open interest at 1.88b amongst top traded platforms with no significant liquidations to note. $BTC dominance at 63.6%

  • Most alt coins followed $BTC’s movements, with price changes of <0.5% across the large cap coins.

  • $LINK seeing more volatility recently after decoupling from the $BTC market last week with an impressive bull run that saw its price increase from 2.27 to 3.8 over the past two weeks. Currently range bound between 3.43 - 3.52 

Traditional markets:

  • DOW and S&P saw their largest decreases in three weeks with DOW down 3.1% to 2,736 and S&P  down 2% to 23,019;

  • VIX increased for a second day to 45.41 after reaching its most recent low of 37.31;

  • Tech sector performed the worst amongst its peers dropping 4% vs ~2.2% average falls.

  • 10 year US Treasury yields declined to 0.55% 

  • Spot gold increased $4 to 1,688 (a sign safe hedges are being sought)

News that caught our eye:

  • ICBC first to release a white paper on blockchain technology, first of its kind from the banking sector. Surprisingly, no large digital market movements in response to this news.

  • After negotiating to receive $300k from the hackers, dForce manages to gain back all $25M of stolen funds after the hacker’s plans are foiled by the blacklisting of their wallets from multiple exchanges. In the future, the ability of digital asset networks to exclude bad actors for AML or criminal activities, based on coin purity scoring,  is likely to be crucial to investor confidence.

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