Daily Market Update - April 7, 2020

$BTC 24 Hour High $7,407 $BTC 24 Hour Low $6,784 $BTC +8.2%

On the day that sent UK PM Boris Johnson to the ICU, traditional and digital asset markets bounced back strong on the start of a new trading week over reports suggesting infection rates beginning to taper off in the US. 

It seems too early to call the bottom, we are expecting choppy markets as there may be a distortion in perception-versus-reality due to existing privacy laws that prevent the media from educating the public on the current situation. The consensus of medical experts appears to be that a lack of test kits and hospital supplies is likely to significantly hinder the progress of containing this pandemic, meanwhile most market participants are understandably looking to latch on to any credible, optimistic news being circulated. 

On another note, global stimulus programs around the world have reached almost $7T as Japan is the latest country to inject $1T into their economy to fight the recessionary trend plaguing its market. Bank of America economist, Joseph Song, suggested that the US government may need to pledge an additional $1T, as the currently approved $2T could be the “bare minimum”. Digital assets market:

  • Total digital market cap injected +13B (+7%) overnight and has recovered $90B from the lowest point since the sell off from $110B -> $206B

  • $BTC up 8.2%, broke the resistance at 7,288 set on April 3rd to current high 7,380 levels. Will need to build support while it $BTC is trading consistently above the midpoint on Bollinger bands, and 1H charts indicating overbought levels @ 80 RSI. 

  • $BTC dominance dropping -0.5% to 64.5%

  • One of the largest, reputable exchanges accidentally sells $306M (42,085 $BTC) for 0.18c, no news on whether it was reversed.

Adoption news:

  • Coinhouse exchange wins first licence from French regulator

  • $BTC Futures volumes shoot up with currently 11.44B, nearly doubling yesterday’s volume, with 1.68B open positions across the top four future exchanges. Funding at longs paying shorts, with futures trading at a 3-5 discount. 10m+ short positions liquidated during this current bull run

Mining-related updates:

  • As reported a couple days ago via Cointelegraph, 40 established miners had shut down due to lack of profitability in the $BTC market. 

  • Large Chinese mining pool Valarhash Baite moves away from $BTC, dropping its $BTC hash rate from 4000 -> 200 PHs to pivot towards alt coin mining. Will this be the start of alt season?

Top performing alt-coins from last night’s push:

  • $ETH up +15%, jumping out 143 levels to 165 levels, in a new traded range and will need to gain support to break back to 195 territory. Up 28% over the past 7 days.

  • $ATOM up +14.8%, support range currently at 2.34 with 2.485 in target. Up 20% over the past 7 days.

  • $EOS up +14%, currently trading at 2.71 with targets at 3.05.

Traditional markets:

  • VIX down 3% to 45; 

  • 10Y US Bond yields rose for the 4th consecutive day to 0.682%;

  • Spot gold dropped -$10 today to 1,669 after its 4 day run 1570->1660 levels.

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