Daily Markets Update - October 6, 2020- McAfee Arrested, BITMEX Indicted, SALT SEC Settlement

Total Market Cap $343.9 BN (+2.08%)

24 Hour Volume $105.2 BN (+44.31%)

Notable Movers yearn.finance (YFI) (+22.61%)

BTC Dominance 57.9% (-0.69%)

A $1T Market Cap?!

Blockstream CEO Adam Back has predicted that Bitcoin will have a $1 trillion market cap by 2025. That’s five times more than the current market cap of $200 million. Back added that even this prediction is "conservative" — and suggested BTC could hit those levels by 2022. That would work out a price of about $50,000 per coin.

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A stunning series of announcements related to indictments and settlements of ICO's and Leveraged Cryptocurrency Marketplaces rattle DeFi on questions of regulatory certainty, but Bitcoin remains above $10k and steadily approaching $11K.

Digital assets market:

  • Overall digital asset market cap reaching $334B, bound between $320-340B over the past 5 days.

  • $BTC trending up 4% since reaching $10,360 lows on Oct 2nd following CFTC news on Bitmex, and still continues to show signs of life since the DeFi bears started to take control. A record of $616M worth of $BTC was ‘wrapped’ for DeFi liquidity staking purposes. Aiming to challenge psychological resistance at $10,800; this morning moving up $50, trading on upper Bollinger bands and at overbought RSI levels. 

  • $ETH trading range-bound between $348 and $355 with the DeFi sector TVL tapering off at 10.76B, showing stagnant growth at the start of October after peaking at 11.11B at the end of last month; ETH Gas fees around mid 80 Gwei, with majority of the DeFi’s TVL on UNI farms

Alts and DeFi watch:

  • $UNI continued to slide, for the third consecutive day, down to 3.30 levels (a 15% drop) from 4.00 levels over this period. 

  • $YFI recovered from $16,000 lows during a weeklong sell off that saw it lose 40% from $32,000 levels. Now settling in at its current levels (~ 18,900). Trading at oversold levels and will look to regain value if it can transition away from its curve staking rewards to something more lucrative as the yields on its yCRV has dropped from highs of 80% APR to mid 15% APR.

Traditional markets:

  • S&P up 1.8% to 3,408 

  • NASDAQ up +2.25% to 11,509 (off -4% from its ATH at 12,400s) 

  • DJI was also up 1.8% to 28,148 

News that caught our eye:

  • McAfee arrested in Spain and waiting extradition back to US to face charges of misleading investors in shilling a number of ICOs as well as tax evasion 

  • SEC Orders Salt Lending to Offer Refunds to Investors in Its $47M ICO

  • BitMex Founders Indicted with Criminal Charges

On the morning of Oct. 1, the United States government authorities in New York issued indictments for four of the senior team of BitMEX, the famed “wild card” exchange based in Hong Kong. Despite that, the crypto exchange still continues to operate its services

BitMEX is one of the world’s largest crypto exchanges and has a reputation for being notoriously “relaxed” on Know Your Customer and ID procedures for its users — at least until mid-August of this year. Additionally, users are allowed a high withdrawal limit with little to no KYC.

After doing some research, it is clear that the company operates a complex international corporate structure. It promotes its registration in the Seychelles with offices in Hong Kong and New York. Although, from a legal point, this could most likely be disputed. The company has often been in the top five exchanges internationally.

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