Daily Market Update - November 26, 2020- BTC retraces along with DOW, S&P


Traditional markets are undergoing an overdue correction with US equities benchmarks slipping overnight (DOW dropped 0.58% after breaking new ATH at 30,000). The markers were not helped by reports of 780K people filing for unemployment insurance, increasing for the second-consecutive week as the lack of stimulus and rising cases of COVID overcast the hopes of an eventual vaccine and a return to “normal daily life”. Equities previously climbed off the news that former Fed Chair, Janet Yellen, has been tipped to take the Treasury Secretary seat in the Biden-Harris administration and the expectation that another stimulus round would come once the dust settles from the transition between the US presidents.

Digital assets market:

  • Digital assets market cap dropped $21B overnight to $551B after rejecting $600B a couple days prior with $BTC rejecting $19,500s. 

  • $BTC’s dance with $19K lasted only a couple days as it currently trades back down to $17,400 with technical analysis showing RSI above 70 levels for an entire month.  Glassnode reported that its Active Supply 6m-12m (1d MA) just reached a 17-month low of 1,814,754.040 $BTC (from its previous 17-month low of 1,814,764.022 BTC). 

  • $BTC dominance 62.2%, with peaks of 64% earlier in the week

  • $ETH held onto $600 levels for three days before a -6% correction overnight dropping it to $575 levels to start this morning. $ETH is up 4% over the week and up 38% over the past month. ETH/BTC climbed as high as 0.034 levels over the past few days after reversing the impact made from the BTC run last month which dropped it by -18% to lows of 0.026.

Alts and DeFi watch:

  • $XRP reached two year highs over the hype surrounding its Spark airdrop. It peaked at 0.79 a couple of days ago and has since dropped 10% to 0.64 levels on extreme overbought levels. $XRP is now up 38% for the week and 160% over the past month. CEO Brad Garlinghouse echoed the same sentiment as Mike Novogratz (see below) with $BTC now proving that it has a store of value with institutions moving the bar 

  • DeFi market cap slid sharply, dropping below 14B after sliding 300m overnight as the top ten coins in the sector saw drops averaging 7-8% across $YFI, $SNX $AAVE, $UNI and $LINK

In the News

  • Pantera Capital declared a “bitcoin” shortage thanks to Paypal claiming its users are buying up 70% of the new minted supply.

  • VanEck creates a new Bitcoin ETN product listed on the Deutsche Borse Xetra, physically backed by coins, announcing Bank Frick as its custodian. 

  • Mike Novogratz advocates for 2-3% of net worth to be allocated to bitcoin



What Exactly IS Bitcoin’s All-Time High?🤨

There’s a lot of numbers bandied about when it comes to the record set by BTC in December 2017. Some believe Bitcoin never actually managed to hit $20,000 — falling short at $19,783. For the record, CoinMarketCap’s methodology says the all-time high was $20,089. Others, like Messari, agree with us. "Let’s just call it $20,000," one analyst quipped.

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Jim Cramer: ‘Not Too Late’ to Buy BTC

CNBC host Jim Cramer has a message for people who are wondering whether they’ve missed the boat with Bitcoin’s recent surge. On Twitter, he wrote: "It is not too late for Bitcoin... great alternative to gold... which i have always believed in." He later denied that he was attempting to pump BTC, and insisted he was simply "observing" market movements.

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Coinbase Pro to Disable Margin Trading Today ❌

Margin trading is going to be disabled on Coinbase Pro from 5pm ET today. Paul Grewal, the exchange’s legal officer, said the move was in response to new guidance from the Commodity Futures Trading Commission. The product is going to be taken offline in its entirety next month once existing positions have expired.

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Yearn Finance’s Tasty New Partnership

Yearn Finance has announced that it is absorbing Pickle in a new "dill." It comes days after $20 million was lost when one of Pickle’s vaults was exploited. Yearn founder Andre Cronje hopes the collaboration will allow both protocols to share expertise, boost yield farming incentives and compensate victims of the hack. Could more consolidation in the DeFi sector soon follow?

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