OSL Daily Update - April 19, 2021
$BTC 24 Hour High $59,036
$BTC 24 Hour Low $51,300
$BTC -7.50% in past 24 hours
Bitcoin experiences a weekend of volatility, although this was one was for the books. The crypto market as a whole experienced a hefty deleveraging event, when $BTC plummeted almost 16% within hours - causing more than $10 billion in liquidations. To put this into perspective, the >50% Black Thursday crash of March 2020, caused around $6 billion in liquidations for the whole market. Many speculate the signs were already there for an event like this to occur: lackluster positive sentiment behind the $61,700 all-time high, the $COIN IPO (and the subsequent selling of shares by many Coinbase executives), futures open interest at an all-time high, exorbitant futures premium (which got crushed on this down move), and Bitcoin hashrate dropping heavily in one day.
The trigger though, seems to have been a tweet from popular finance news account FXhedge, stating that the U.S. treasury would charge many financial institutions for illicit activities using cryptocurrencies, citing no source. Within the hour, the crypto market began to freefall. Other popular finance themed accounts have since tweeted dubious claims such as the launch of $DOGE futures on the CME; it is thought these accounts may have been compromised.
Digital assets market:
- $BTC down 0.22% on the day, support/resistance - $53,250/$57,700
- $BTC liquidations and funding: $5.17 billion, -0.055% average
- $ETH is up 0.50% on the day, support/resistance - $2,077/$2,320
- $ETH liquidations and funding: $1.04 billion, -0.097% average
Alts and DeFi watch:
- DeFi TVL: $60.11B
- $SOL rose more than 55% since yesterday’s dip
- $FLM up more than 90% since last night’s crash
- $YFI sets new all-time high at $57,744
More news that caught our eye:
- Canada’s Purpose to launch first ever Ethereum ETF
- Central Bank of China says Bitcoin should be viewed as an alternative investment vehicle
OSL Trader View is contributed by Santiago Nazaretti and Jose Reyes
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