$DEI is the latest stablecoin to lose its USD peg

​​$BTC 24 Hour High $30,756 / Low $29,420 |   $BTC -4.4% Past 24 hours; -12.1% Past 7 day

Good morning. Over the past 24 hours, $BTC reclaimed $30,000 and squeezed into a tight trading range between $30,000-$30,200, and volatility has calmed down since last week. Nevertheless, altcoins continued to underperform, indicating the bearish sentiment is still looming among the short-term investors. BTC mining appears to have survived the ban in China, with its contribution to the mining network being second to the U.S. from September 2021 to January 2022, according to the CCAF Report.

The funding rates of $BTC have settled somewhat but remained stretched to the downside among major retail exchanges, suggesting more leverage is being used by market participants betting on lower prices. If the current bullish momentum continues, $BTC may climb towards its first critical resistance at $33,000, but that may still take a few days to play out. However, if the pioneering digital asset breaks the support at $28,800, prices may continue to grind lower in what remains a bearish macro set-up. 

Like $BTC, $ETH has traded sideways in a very narrow wedge over the past 24 hours, with key resistance at $2,160 untested. Though the current market activity remains muted, $ETH may chart higher if $BTC regains its bullish momentum. Leverage was also employed more to the downside. The liquidations map shows a build-up of shorts between $2,100 and $2,200, but they seemed too spaced out to result in a potential short squeeze event – this may only become more noticeable when $ETH climbs above $2,300. Investors should keep an eye on the daily RSI breaking above the weekly RSI and MACD histogram bars turning green, which would indicate a buy signal. Not happened yet, but a push higher would help flip it. 

Following the UST de-pegging saga, Deus Finance’s stablecoin Dei (DEI) has become the latest stablecoin to lose its 1-to-1 peg to USD. After other algorithmic stablecoins lost their peg last week, the coin traded at $0.64. Deus’ collateral fell to 43%, making it difficult to redeem the DEI tokens. Traders use this arbitrage mismatch to their advantage by purchasing DEI coins and swapping them for $1 worth of collateral. As a result, Deus Finance stopped the redemption process to stabilize the coin. 

In other news, BSO, the global pioneering infrastructure and connectivity provider has become the low latency connectivity provider for OSL’s institutional-grade exchange. This allows clients to gain rapid access to critical infrastructure that supports their high-frequency and algorithmic trading.

Learn more from today’s Trader View video.

Digital Assets Market

  • Total crypto market capitalization stands at $1.37T, +1.4% from yesterday
  • $BTC is -0.10% at time of writing; 24H liquidations and funding rates: 49.29M, -0.00888% average
  • $ETH is -0.32% at time of writing; 24H liquidations and funding rates: 30.75M, +0.01780% average 
  • Stablecoins market dominance: USDT 46.47%; USDC 32.74%; BUSD 11.40%; DAI 3.83%,UST 0.62%

Alts and DeFi watch:

  • DeFi TVL: $113.22B (+1.35% over last 24 hours)
  • $SOL +4.7% in the last 24 hours, -14.6% in the past week
  • $SHIB +2.6% in the last 24 hours, -22.7% in the past week
  • $SAND +2.4% in the last 24 hours, -21.5% in the past week
  • $ENJ +1.8% in the last 24 hours, -9.8% in the past week

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OSL Trader View is contributed by Hans-Stefan Vonhaenisch, Tiffany Wee & Ethan Fu.

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