Daily Market Update - June 3, 2020- $230M in BitMEX Liquidations Hit Bulls and Bears Alike

$BTC 24 Hour High $10,162.83110,162.830,162.83 $BTC 24 Hour Low $9,460.57 $BTC -6%

The recent volatility in the Bitcoin (BTC) markets has left both bulls and bears facing significant liquidations, with almost $223 million in 24-hour margin calls on leading derivatives exchange BitMEX being evenly spread between BTC shorts and longs. As of when this story was published, a little over $111.5 million, or 50.04% of the total was liquidated in the form of Bitcoin longs, while shorts represented $111.3 million, or 49.96% of liquidated positions, according to Cryptometer.

Confidence in Coinbase continues to fall

The sudden price crash triggered familiar outages on top exchanges, with users reporting overloads on BitMEX as slippage drove prices as low as $8,600 on the platform.

Top United States-based exchange Coinbase went offline like clockwork as prices rallied above $10,000, with Twitter user ‘cryptorecruitr’ asking the firm: “How does an exchange with an $8 billion valuation crash every time Bitcoin pumps 5%? I would genuinely like to know.”

‘AndySpqr’ added: “Crypto prices rise and once again@coinbase shows error msgs to people trying to access funds. I would highly suggest when you get in, get those funds off that exchange. It’s a complete s**t show.”

U.S. Markets continue to defy logic

The S&P continues to climb in spite of record declines of 13.6% in April, the highest declines ever on record. It was the sharpest decline on record dating back to 1959. The combination of direct checks from the government and unemployment programs counteracted an 8% decline in wages and salaries from job losses. Weekly initial unemployment claims continue to fall but remain stubbornly above 2 million per week.

  • The European Union and Japan announced additional stimulus measures to support the opening of their economies.

  • The S&P 500 added another 3% last week and climbed 4.8% last month.

The European Union proposed €750 billion ($824 billion) in fiscal stimulus to support the eurozone’s recovery from the coronavirus. Japan announced further stimulus, too. The coronavirus epicenter continues to migrate as Brazil has had more new cases than the U.S. in recent days.

In what seems to be a regular pattern, investors focused on the signs of recovery and hopes medical advances will spur a return to economic strength. The S&P 500 gained 3% last week and rose 4.8% last month. Global stocks welcomed the news of additional economic stimulus, and the MSCI ACWI soared 3.6%. The ACWI finished 4.3% higher. The Bloomberg BarCap Aggregate Bond Index rose 0.2% and added another 0.5% to the month. The biggest data release this week is the U.S. Employment Situation report on Friday. The report is expected to show unemployment reached 20%. The value of the report is lower in the fast-moving COVID-19 world. The information was gathered three weeks ago, so it doesn’t reflect any of the reopening activity. The release is still very important as the detail on activity within industries gives us insight regarding which industries are starting to recover.

Blockchain Is Part of China’s Master Plan for New Competitor Island to Hong Kong

Chinese authorities have released a master plan for turning southern island province Hainan into a free trade port, Xinhua news reports on June 1. A trade port system will focus on facilitating free trade, investment and cross-border capital flows in the whole island. The master plan encourages government institutions to use blockchain and other technologies to reform government function.

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