Daily Markets Update - September 8, 2020

Total Market Cap $330 BN (+4.43%)

24 Hour Volume $166.4 BN (+0.18%)

Notable DeFi Movers DMM Governance (DMG) (+41.76%) Cream Finance (CREAM) (-16.46%)

BTC Dominance 57.4% (-1.03%)

Quick Bites

  • Bithumb Exchange’s Offices Raided Again by Korean Authorities: Report (Paddy Baker/CoinDesk)

  • Bitcoin Banking App Mode Eyes £40M UK Listing (Paddy Baker/CoinDesk)

  • European Crypto Tax Companies Announce Merger to Power US Expansion (Paddy Baker/CoinDesk)

  • Chainlink nodes were targeted in an attack last weekend that cost them at least 700 ETH (Yogita Khatri/The Block)

  • SushiSwap Victims Urged to Lawyer up (Adriana Hamacher/Decrypt)

With the equity markets closed for Labour Day in the US, the focus was squarely on digital assets.  Market volatility slowed, but a small flurry of buyers jumped into the market to “buy the dip” as $BTC dipped below $10K levels. Glassnode analytics showed “accumulation addresses” increased by 2% to 513K wallets (as defined by addresses receiving more than 2+ non-dust transfers). Overall market cap increased from 308 to 315B and $BTC dominance increased slightly to 57.5%.

  • $BTC broke 10,000 support overnight to lows of 9,875 before rebounding to 10,350 with between 500 traded range that saw 13M long and 10.6M short contracts liquidated. Next resistance at 10,600 to breakthrough with increased trading volume.

  • $ETH down 25% from 476 to 351, trading at bottom Bollinger bands and oversold RSI levels, $28 below its 10d SMA

  • ETH blockchain developers weighing options for previously high GAS fees, potentially re-releasing an old code that offers a rebate via smart contract

Bitcoin’s options market retains long-term bullish bias despite the recent price pullback. ----- Omkar Godbole CoinDesk

  • According to data source Skew, the six-month put-call skew, which measures the value of puts, or bearish bets, relative to that of calls, bullish bets, is currently seen at -10%.

  • The negative number indicates the call options expiring six months from now are drawing higher prices or demand than puts.

  • The six-month skew shows bitcoin’s pullback from $12,400 to $10,000 seen in the past three weeks has failed to weaken investor confidence in the cryptocurrency’s long-term prospects.

  • However, the one-month skew has crossed above zero, a sign of investors adding put options to position for a deeper short-term price decline.

  • Bitcoin has developed a sensitivity to traditional markets over the past six months.

  • Hence, a notable drop in the global equity markets could yield a stronger pullback in bitcoin, as noted by blockchain intelligence firm Glassnode.

  • Major European stocks are nursing losses on Tuesday, with U.S. equity index futures pointing to a risk aversion on Wall Street. Futures tied to the Nasdaq index are down over 200 points at press time.

  • Bitcoin is currently trading near $10,030, having faced rejection above $10,400 during the Asian trading hours.

  • On a month-to-date basis, the cryptocurrency is down over 13%.

  • Still, sellers have failed to establish a foothold below $10,000 in four of the past five trading days.

  • “Overall local daily fluctuations look typical to non-directional movement. Lots of liquidity hunting, long-wicked [daily] candles prints the overall idea of a bottom-forming process,” said Adrian Zdunczyk, a chartered market technician and CEO of trading community The BIRB Nest.

Alts and DeFi watch:

  • $LINK unable to capitalise any further momentum on the 21% move from 10.55 to 12.80 levels, dropping back to 12.50 levels at oversold RSI levels and trading just below 10d SMA  expectations by 5%. 

  • $XTZ dropping to 2 month lows to 2.53 levels with the -27% drop over the weekend, next resistance at 2.63 levels with support at 2.33 levels

  • Most DeFi tokens still in the red after the Sushiswap exit that saw Chef Nomi cash out with $11M worth of $ETH in the process

  • $YFI dropped six out of the past  eight days from 40K highs to 22K levels,  trading at 2.18 YFI BTC and neutral RSI levels and 5K below 10d SMA.

DeFi interest?

Retail interest in decentralized finance (DeFi) applications remains quite low compared to the initial coin offering (ICO) bubble, measured by Google search queries, CoinDesk’s Omkar Godbole reports. Indexed to the peak of searches for “ICO,” searches on Google Trends for the word “DeFi” currently return a value of 18, indicating the retail crowd is as interested in open-source finance as they were in ICOs during the latter’s boom. Put in context, these searches come amid a period when the total value locked into the DeFi ecosystem has increased 1,300% to above $9 billion this year, approximately 66% higher than the $5.4 billion raised by ICOs in 2017. This disparity between searches and capital may indicate that DeFi’s growth is being driven by savvy investors.

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