OSL Daily Update - June 1, 2020
$BTC 24 Hour High $9,704.03
$BTC 24 Hour Low $9,445.53
Just like that, we reach June on the backs of: riots and protests across the US stemming from the George Floyd situation; post-COVID19 recovery hopes; deteriorating US-Sino relations; US withdrawing from WHO; and a successful SpaceX launch that became the first commercially built rocket to reach the International Space Station.
Digital assets market:
- Market cap has fluctuated by 10B over the weekend with volatile markets triggered from expiring May futures and options contracts, climbing intra-week highs of 270B.
- $BTC’s weekend run up from 9,430 was halted at 9,750, unable to challenge the 9,800 level resistance level set on May 20, wiping out all of its weekend gains to open Monday’s trading session at 9,450 levels. Despite all this, $BTC has increased 6% over the past week.
- $BTC futures open positions at 3.6B to kick off June 1st after 21.4M total positions (20M Longs + 1.4M Short) liquidated overnight.
- Desk seeing more consistent USDT sell-flow this past week with Asia’s COVID19 recovery efforts seemingly a step ahead of the rest of the world. Seeing more $BTC buy-side flow coming from large funds taking advantage of the $BTC drop over last night.
- $ETH is enjoying a nice run up with positive progress from ETH 2.0 patch Serenity which will transition the blockchain to a proof-of-stake model. $ETH climbs +13% over the week, trading range bound between 200-210 before breaking out highs of 248 before correcting down to 230, shedding half of its weekend gains. Retargeting 250 as its next resistance with 200 levels as tested support levels.
- $XRP flirting with sub-0.20 levels again after reaching highs of 0.2082 after Saturday’s run up. Spent the previous week range bound between 0.19xx with little newsworthy activity to stimulate interest.
- $ADA and $ZIL were the top best mid-cap performers:
- $ADA up 37% to four month high (0.07). Social data from Santiment, a blockchain analytics firm noted that the strong performance was led more by strong fundamental analyses over social media posts. Support at 0.051 with targets of 0.09 levels from early June 2019.
- $ZIL rose for the fifth consecutive day after Vitalik publicly voiced his support for the project, for a total of 24% gains during this time frame, trading at 0.014 with support at 0.012.
Despite increasing US unemployment rates, stock markets continue to rise over hopes of additional economic stimulus packages.
VIX dropped to lows of 27.51, just around double of pre-COVID19 levels, and saw highs of mid 80’s during the peak. Historians comparing the calamity to previous crashes have noticed that the market slowly begins to reflect the damage after VIX levels have begun to normalize, which seems like the inevitable situation at this point.
News that caught our eye:
- Growth of digital assets and blockchain sector is attracting the attention of Big four auditors
May the trend be your friend!
OSL Trader View and Weekend Digest are contributed by Stefan Chu, SJ Oh, and Santiago Nazaretti
OSL is Asia’s most comprehensive digital asset platform providing brokerage, exchange, software-as-a-service and insured custody solutions to professional investors.
Home to one of the world's largest and most experienced digital asset trading desks, OSL has its finger on the pulse of the market. The Trader View newsletter is a short, easily digested summary of market activity and eye-catching news of the day.
Feedback is important to us, and we’re keen to learn more about the types of insights and intelligence that matter to you most. Please share your thoughts with us.
Please refer to OSL's relevant disclaimers and disclosures associated with this note, including restrictions on redistribution.