OSL Daily Update - May 28, 2020 

$BTC 24 Hour High $9,203.32
$BTC 24 Hour Low $8,826.60
$BTC +3%

Across digital assets, market cap ranged between 247B and 250B all week with 8B flowing back into the market overnight.  It returned to highs of 256B as $BTC recovered +3% to 9,200 after weekly selling pressure pushed it to lows of 8,600s. Targeting 9,500 reached last week on the next move up with support at 9,000 levels. Still down 3.7% over the past seven days.

Three days of consistent 13B $BTC traded volume amongst top future exchanges with last night’s uptick liquidating 50.8M in short open positions. There’s 3.4B aggregated open positions currently.  

Alt markets:

  • Alts market remains less volatile, following $BTC again on the move up as $BTC dominance increases by 0.4% to 66% 
  • $HBAR outperforming all other alts, spiking 10% off the news of LG joining their governing council. Unable to maintain above 0.05 levels and corrected to 0.048 with 0.055 targets from early March. Slightly above half its ATH at 0.083 in February.
  • $ETHBTC down 1.5% over the past three consecutive days at 0.022 while $ETHUSD maintained levels above 200 with its weekly traded range 196 to 211.
  • $BCHBTC also down for three days, with a large drop of 2.5% with low traded volumes.
  • $BCHUSD trading within a tight $10 range over the past week from 222 to 232
     

News that caught our eye:

  • Goldman Sachs’ investor call highlighted that digital assets do not “constitute a viable investment rationale”, as $BTC is not an asset class because it cannot create cash flow unlike bonds.
  • More players joining the prime brokerage space: 
    • Coinbase acquires prime brokerage firm Tagomi 
    • Crypto custodian BitGO announces BitGO Prime
  • Plaintiffs file new evidence against Craig Wright over fabricating a list of wallet addresses and blocks
     

Traditional markets:

  • Equity markets up with a strong second consecutive trading day for the Dow (+2.2%) while it briefly diverged from NASDAQ during the morning session. 
  • S&P500 at a 12 week high with targets at 3,131 on the next move up with optimism surrounding businesses reopening up and a step towards the new normal.
  • Recent spat between the US and China has driven up USDCNY rates to highs previously seen in September 2019, and up 3% from COVID-19 lows. Expecting this development to drive more payment provider flow today with a slight arb opportunity present.


 

May the trend be your friends!

 

OSL Trader View and Weekend Digest are contributed by Stefan Chu, SJ Oh, and Santiago Nazaretti

 


 

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