OSL Daily Update - July 29, 2020
$BTC 24 Hour High $11,204.33
$BTC 24 Hour Low $10,632.63
Traditional equity markets dropped yesterday, US benchmark indices fell 1% with the tech sector showing all red, while healthcare and real estate sectors were spots of hope - showing green. Facebook was overtaken by Tencent to become the world’s most valuable social media network by market cap. Many countries are continuing to experience a setback towards COVID-19 recovery efforts with the current “third” wave of infections. Russia prepares for what many hope to be the world's first approval of a vaccine (around August 10th) created by the Moscow based Gamaleya Institute.
Digital assets market:
We’ve reached the mid-week into the $BTC bull run where it has remained above 10K for the past three days, Glassnode analytics show a lack of whale activity leading into this week’s $BTC bull run, suggesting more retail investors are entering the market. Currently just under 7.5M wallet addresses with holdings between 0.001 -0.01 $BTC.
- Digital asset market cap dipped slightly overnight, dropping 1.9% from 3.29B to 3.21B
- $BTC physical volumes dropped 22% to 31B with a traded range of 600 on its third day above 10K. With 4h charts, currently trading at its 10 bar average at 10,900, upper Bollinger bands and RSI at overbought levels.
- $BTC dominance slipped from 63% to 62.4%. Expecting short term volatility as more investors begin to speculate the next movement of $BTC at 10K levels
- $BTC futures traded volume dropped 25% to ~30M, 4.7M open interest aggregated across all exchanges, dropping 0.3M from yesterday. 56M long +19M short positions liquidated with the traded range volatility.
- Desk is seeing $BTC two-way flow increases correlated to market trends and payment provider flow for $USDT around 70% capacity with a small window of arb.
Out of the top 10 alts; strongest performing coins:
- $XRP up 5%, maintaining above 0.20 for the fifth consecutive day, up 16.7% during this period with traded volumes ~2.4x above the month’s average. RSI indicator showing overbought levels after spending the majority of June at undersold levels when prices were around 0.17-0.19.
- $BCH up 5.7% overnight, overall 16.8% from 247 to 289 from the start of Monday.
- BCHBTC reached two month highs at 0.0266, fluctuating around 0.0230-0.0261 as it was dragged down for 8 consecutive days from Jul 9-17.
- $ADA up 6.2% to 0.147, rejected 0.15 levels to range bound between 0.13-0.15.
- DeFi market cap up 200M to 7B from overnight
- $LINK up 7% over two consecutive days from 6.50 lows to 7.4 current price
- $SNX up 12% overnight to 3.32
- $XTZ up 4% to 2.94 after dropping to 2.62 two days ago at the start of the BTC run, trading at neutral RSI levels and at the middle of Bollinger bands.
News that caught our eye:
- Bull run pushes $BTC price to new highs even as funding rates reach record highs
- North Korea’s crypto extortion efforts have expanded considerably in 2020
- 39M worth of $BTC stolen from Bitfinex on the move.
Money laundering and financing of terrorism continue to be a significant risk for blockchain assets. With the amount of assets lost due to hacks and scams increasing every year, the threat that assets may not be ‘clean’ is real.
Coin purity assurance is a cornerstone to OSL Custody’s security measures, conducting due diligence on all coins before transferring into an account to help mitigate compliance risks. We’d be delighted to talk to you about safeguarding your digital assets. Let’s schedule time today.
OSL Trader View and Weekend Digest are contributed by Stefan Chu, SJ Oh, and Santiago Nazaretti
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