Daily Market Update - June 24, 2020

#BTC 24 Hour High $9,670.54 $BTC 24 Hour Low $9,547.25 $BTC +0.2%

Digital asset markets cooled down for the most part with $BTC volatility flatlining overnight (on a trading range of 120). $BTC volumes dropped 21% to 18.7B, but remains up 1.6% over the past week. Trading around $100 above the 30D SMA at $9,650 in the upper Bollinger Bands. Targeting $9,700 on the next move up. $BTC futures volumes fell below $10B (to $8B) overnight with open interest remaining at $3.8B, at its monthly high as set on June 1st. No major liquidations to note.

Cryptocurrency Market Cap $275.9 BN (+1.14%) 24 Hour Volume $60.7 BN (-14.63%) Notable Movers Bancor (BNT) (+22.73%) BTC Dominance 64.5% (-0.31%)

Industry News

The central bank of Brazil has suspended WhatsApp’s payments service just a week after its launch. The central bank said it had ordered Visa and Mastercard to immediately stop payments and transfers via WhatsApp. The decision aims to "preserve an adequate competitive environment, which ensures the functioning of an interoperable, fast, secure, transparent, open and inexpensive payment system," said the central bank.

PayPal’s Newly Formed Blockchain Research Group Is Hiring Payments giant PayPal’s newly formed Blockchain Research Group is currently hiring for a "senior blockchain research engineer," according to a recently posted job vacancy. The blockchain research engineer vacancy, located at PayPal’s headquarters in San Jose, California, would involve creating "clear, timely, and well-researched documentation that expresses a point of view or suggested course of action." The researcher would also develop proof of concepts and pilots, pitch ideas to senior management and get hands-on experience with existing blockchain technologies.

Coin Metrics Finds the ‘Coinbase Effect’ Is Not All Its Cracked Up to Be The fabled ‘Coinbase Effect’ has a much more limited impact on the price of newly listed coins than is popularly believed, according to Coin Metrics. The crypto data analysis firm has just published a report examining the impact that listing on the leading U.S.-based crypto exchange has on the price of a given crypto asset. The report concludes the effect is fairly muted — with new Coinbase markets typically posting average and median price performances between -1% and +14% against USD, Bitcoin (BTC), and Ether (ETH) from 10 days before until ten days after a listing’s announcement.

Top DeFi 'Yield Farmers' Share Their Secrets to a Profitable Harvest Yield farmers are earning as much as 100% APR on popular stablecoins on a good day in the field. On a bad day, losses can be steep, but the potential for big profits has drawn hundreds of millions into DeFi in the past week. While depositing capital into a smart contract to earn a return is nothing new to DeFi, yield farming has become more attractive in the recent weeks as protocol teams are increasingly incentivizing liquidity providers (LPs) by distributing their native token. That means traders can get the hottest tokens on the block in addition to interest on their deposits

Compound Token Suffers Heavy Losses But Still Dominates DeFi Rankings

Compound Governance Token (COMP), the native token to the popular decentralized finance (DeFi) protocol Compound, has suffered heavy losses after its meteoric first day of trading on Coinbase. After trading as high as $427 on Coinbase Pro on Tuesday, COMP has fallen back below $250 within 8 hours of the local high. With less than one-quarter of COMP’s entire supply currently circulating, the aggressive price swings were driven by relatively thin volume — posting $24.5 million in trade over the past 24 hours. Despite the sharp decline in price, COMP still represents 36.5% of the total DeFi market cap with over $2.3 billion according to DeFiMarketCap

Bancor’s Bug Exposes Dangerously Common Practice in Ethereum DeFi

A vulnerability discovered on Bancor on Thursday would have allowed hackers to simply drain the funds of anyone who interacted with its smart contracts. The exploit relied on the concept of withdrawal authorization, introduced in the ERC-20 standard. This allows various Ethereum-based decentralized applications to automatically withdraw money from users’ wallets. As Oded Leiba, a research engineer at ZenGo, wrote, the fund withdrawal function on Bancor’s smart contract was mistakenly set so that anyone could call it. As it turns out, many other DApps on Ethereum do the same.

The unlimited printing of money will push up the price of things whose quantity cannot be eased. As economists try to get their heads around the magnitude of this, there has been an escalating series of statements like “this deficit is the worst since 2008”, “…the worst since WWII”, “…since the Great Depression.” It’s the worst – full stop. The U.S. deficit for 2020 – at 19.2% of GDP – is larger than the widest deficits during the Great Depression and it is larger than the average annual deficits the United States incurred while fighting World War II. (The U.S. deficit averaged 16.2% of GDP during the fiscal years 1942-1946.) THE LIQUIDITY TSUNAMI That tsunami of money will have a large impact on many things. In our markets it seems inevitable that it will push up the price of fixed-quantity things like bitcoin. If there are trillions more paper dollars, the law of supply and demand implies much more paper money to buy the same amount of cryptocurrency. Bitcoin was created in a reaction to the previous money printing. The price of bitcoin has gone up exponentially during this 10-year period of what was at the time unprecedented money printing. What’s going on in the world today is an order of magnitude larger.

RISING TSUNAMI (OF PAPER MONEY) FLOATS ALL BOATS Money printing is not a precision instrument. It cannot be pinpointed to impact only one thing – like the virus itself. It acts equally on all assets. The rising tide of paper money will float all boats. The most obvious proof of this concept is the fact that stocks are essentially flat on the year – even though we’re going through a frightening crisis which is predicted to result in a shocking 70% fall in corporate profits and result in a huge wave of bankruptcies. Even bankrupt companies like Hertz are rallying. There is no clearer sign that a wave of paper money is sloshing around than the stock of a company which has admitted it is worthless rallying and planning a public offering “to satisfy investor demand”. The tsunami of money has increased the price of cryptocurrencies generally. We have used bitcoin as a proxy for the market because it is best known. Below we discuss how some sectors of cryptocurrency are surging even more than bitcoin

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