Daily Update - March 25, 2020

$BTC 24 Hour High $6,789 $BTC 24 Hour Low $6,411 $BTC +1.65% 

Markets finally rebounded as market sentiment shifts to short-term optimism over the proposed $300B stimulus package by the FED. The FED announced its proposal to purchase $75B in treasuries and $50B in mortgage-backed securities, which could use some help as that sector has recently seen a large wave of redemptions, forcing many of these firms to liquidate their positions in response. 

With many governments around the world injecting multiple rounds of liquidity to keep local businesses afloat, one may begin to question the point at which the public becomes desensitised to the enormity of the situation and this becomes the new norm. With that being said, VIX dropped down from 73 -> 61, as the fear levels ease slightly. The volatility index spent 7 days above the 70 range, with the benchmark prior to the outbreak around 15. 

Digital asset markets:

  • $BTC up +$300 during the American session to trade between 6,550-6,700 range;

  • $BTC dominance soars nearly 2% yesterday as its market cap increases 2.3% to 123B with ETHBTC and BCHBTC sliding 6% each respectively over the past couple of days;

  • BTC Futures volumes down, currently with 1.2b open interest across top 3 platforms, shorts paying longs and trading at a 3-5 discount. Bull/bear ratio at 66/33;

  • $BSV up to 171 levels, up 47% over the past 7 days from 122 range. A group of unknown miners have taken over more than half of the hash rate, making it prone to a 51% attack.

Notably, desk noticed more buy-side demand for $ETH as of late, up +11% over the past couple of days from 122 to 136 with targets of 154 in the short-term, next jump would be for 200 levels. Currently trading at its 20 day SMA.

Traditional markets:

  • With major US cities reporting that their medical supplies are one week away from depletion, New York Mayor, Andrew Cuomo, pleads for more ventilators after reports that 25,000+ New Yorkers are infected, with 200+ casualties to date; 

  • Reports surfacing that President Trump aims for the US to be “back to normal” by Easter, a target that is two weeks away from today. Key point to note is that by setting this expectation to the public, failure to achieve this deadline may undermine any optimism/momentum of getting out of this situation, possibly throwing markets into another spiral. 

Until then, all eyes on traditional markets as US benchmarks rose ~10% and Dow gained +2,113 points (11%)  breaking 20,000 levels after 7 days below. Its strongest single day performance since 1933.

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