Daily Market Update - November 9, 2020

Markets are looking unusually active for a Monday with the market cap edging closer towards $450B, after a bit of volatility with $BTC that began on Saturday.  This was closely followed by DeFi coins bouncing back on Sunday with eyes firmly fixed on the majors ($BTC and $ETH).

$BTC dipped as low as $14,700s  over the weekend before recovering up 5.5% and resurfacing above the $15K threshold again. Seems like more institutional flow pushing the envelope with the latest movements pushing above $13K to $15K. Rejected $15,650 levels over the weekend with support at $15,300. Currently trading around $15,500 levels after seeing 18.4M short contracts liquidated over the past 24 hours.

$ETH corrected to $423 on Saturday before rebounding to $450 levels. Could not break through $460 levels and sits currently range-bound between $446 and $460 on slightly overbought levels and the upper Bollinger bands

Alts and DeFi watch:

  • $BCH with a traded range of 35 over the weekend, between $245<>$280, currently at $268 levels at the time of writing as the hard fork resulting in more recent activity. $BCH spent most of Sep and Oct 2020 around $202<>$241 prior to the volatility.

  • DeFi TVL breaking past $12B to $12.5B with AMM’s and staking options coming back:

  • $AAVE moving up 4 days in a row, up nearly 100% from 25 levels to 54.

  • $YFI recovery from $8360 lows to go up 81% over the past 4 days as well to $15100 currently traded levels. 

Upcoming events to note:

  • $BCH -  Hard fork is set for November 15th.

  • $XRP - Snapshot for XRP’s utility fork airdrop re: Spark token on Dec 12th

Most Family Offices Will Own Bitcoin-JP Morgan

The Grayscale Bitcoin Trust is outperforming gold exchange-traded funds, a trend perhaps driven by institutional investors like family offices, according to a report by JPMorgan analysts.

  • “This contract lends support to the idea that some investors that previously invested in gold ETFs such as family offices, may be looking at bitcoin as an alternative to gold,” the analysts wrote in the Nov. 6 report.

  • The climb of the Grayscale Bitcoin Trust indicates it’s not just millennials driving demand for bitcoin, but institutional investors like family offices and asset managers, the analysts said. Grayscale is part of Digital Currency Group.

  • The analysts continued: “As we had highlighted in our previous [report] of October 23rd, the potential long-term upside for bitcoin is considerable if it competes more intensely with gold as an ‘alternative’ currency given that the market cap of bitcoin would have to rise 10 times from here to match the total private sector investment in gold via ETFs or bars and coins.”

  • The analysts noted, however, that the “sharp spike in prices this week appears to have taken bitcoin close to overbought levels” which could trigger a sell-off.



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