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Stocks Continue Downward Move While Bitcoin Fights to Stay Above $10,000

One criticism that often comes up when speaking with skeptics about crypto trading is the prospect that whales control this market.

The post Stocks Continue Downward Move While Bitcoin Fights to Stay Above $10,000 appeared first on Bitcoin Market Journal.

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One criticism that often comes up when speaking with skeptics about crypto trading is the prospect that whales control this market.

Well, that may be true, but the issue isn’t any worse than it is in any other market. The big story crossing financial media today is about a large hedge fund who’s been pushing around the world’s biggest tech stocks.

Softbank article Nasdaq Wale

So all the narratives about the Federal Reserve, QE, new retail money, stock splits, tech equities being immune to the virus, and pure momentum have fallen by the wayside, and now it’s clear that a record-breaking month of August was largely due to a single player.

With the amount of $4 billion, which was levered up to a notional amount of about $50 billion, it seems to have been enough to carry the wayward index to unbelievable and unrealistic new highs.

Incidentally, the “bloodbath” we’ve been seeing in the equity markets over the last few trading sessions is being blamed on the unwinding of those contracts.

And me, I have been over here pondering what that kind of damage a whale of that size might be able to accomplish in a smaller market such as bitcoin. …

Splashing around

One thing we do know is that over time, the day-to-day correlation between bitcoin and the S&P 500 reached an all-time peak during the height of the pandemic fear, but it has now returned to its natural uncorrelated state. However, that’s not to say that investors aren’t taking their cues in one market from another.

To add clarity on the timing, we should at least check out the chart. Here we can see the two assets rise over the last few months and the sizable pullback in both.

Nasdaq

Of course, any analysis of this style is wide open to subjective opinion, but if you’re asking me, I don’t see too much connection. Not in the rise, which was felt much less subtly in late July, nor in the correction, which came nearly 24 hours ahead of the stocks.

What I mean is, if you want to build a case that what’s happening in stocks is affecting crypto, shouldn’t the stock move have come first?

As we’ve seen many times in different markets, including but not limited to the case of Softbank highlighted above, we won’t always know the real reason for the short-term market movements, and the precious few times when we do get a hint may just come at a time when it’s way too late to act.

Breach!!

By my count, traders had exactly three clear opportunities over the long weekend to buy bitcoin under $10,000.

One thing that really stands out about this pullback, though, is the absence of large volumes. It’s clear that there’s a battle happening at bitcoin’s most significant barrier, but given the psychologically importance of this level, you’d think that the stakes would be higher.

According to Messari Crypto, the estimated volumes across crypto exchanges have been down quite significantly over the last week. In fact, volumes were much higher throughout the month of August when the price of bitcoin was more stable.

A quick look at the stats on bitcoin’s blockchain and the institutional futures markets are similarly lackluster.

Graph

Glancing at bitcoin’s chart, it’s quite possible that we may be in for a downward breach. However, two thoughts are driving my personal bullish sentiment at the moment.

The first is that CME gap which is still open, just a fluke length away from the current prices. It closes at around $9,660 or thereabouts. The second is the indicator just below that, the 200 DMA, which currently sits at $9,000 and change.

Thirdly, is the question that I keep seeing pop up on social media, especially among long term hodler: Who in their right mind is selling bitcoin right now?

Source: https://www.bitcoinmarketjournal.com/stocks-continue-downward-move-while-bitcoin-fights-to-stay-above-10000/

Blockchain

Kraken Daily Market Report for February 27 2021

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Overview


  • Total spot trading volume at $1.43 billion, down from the 30-day average of $2.1 billion.
  • Total futures notional at $388.7 million.
  • The top five traded coins were, respectively, Bitcoin, Cardano, Ethereum, Tether, and Polkadot.
  • Strong returns from Cardano (+12%), Algorand (+12%), and Polkadot (+11%).

February 27, 2021 
 $1.43B traded across all markets today
 Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD 
XBT 
$47003. 
↑1.4% 
$445.1M
ADA 
$1.3931 
↑12% 
$387.5M
ETH 
$1475.3 
↑2.1% 
$222.3M
USDT 
$1.0003 
↑0.02% 
$131.7M
DOT 
$34.820 
↑11% 
$103.0M
USDC 
$0.9999 
↑0.0% 
$26.8M
LINK 
$26.326 
↑4.6% 
$23.4M
LTC 
$173.66 
↑1.9% 
$22.5M
XRP 
$0.4446 
↑3.8% 
$21.8M
XLM 
$0.4365 
↑8.7% 
$21.6M
ALGO 
$1.0888 
↑12% 
$10.6M
ATOM 
$19.947 
↑5.4% 
$9.11M
XDG 
$0.0500 
↓0.9% 
$8.72M
UNI 
$23.479 
↑1.6% 
$8.25M
BCH 
$490.82 
↑1.2% 
$7.79M
KSM 
$230.39 
↑6.5% 
$6.77M
XMR 
$215.72 
↑5.5% 
$6.53M
XTZ 
$3.6639 
↑5.4% 
$5.41M
FLOW 
$20.012 
↑1.3% 
$5.13M
GRT 
$1.7118 
↓1.2% 
$4.08M
DASH 
$216.23 
↑4.7% 
$3.95M
AAVE 
$337.48 
↑4.1% 
$3.89M
EOS 
$3.7541 
↑5.7% 
$3.27M
TRX 
$0.0473 
↑4.7% 
$2.97M
YFI 
$32452. 
↑4.2% 
$2.76M
SNX 
$19.217 
↑6.6% 
$2.54M
QTUM 
$5.3802 
↑3.8% 
$2.51M
BAT 
$0.5291 
↑0.4% 
$2.18M
DAI 
$1.0009 
↑0.0% 
$2.16M
FIL 
$37.896 
↑7.9% 
$2.12M
OMG 
$4.5904 
↑3.3% 
$2.09M
NANO 
$5.2985 
↑2.9% 
$1.92M
SC 
$0.0100 
↑1.6% 
$1.91M
ICX 
$1.5462 
↑4.0% 
$1.8M
OXT 
$0.4816 
↑5.1% 
$1.5M
WAVES 
$9.8523 
↑3.1% 
$1.44M
ZEC 
$122.20 
↑3.3% 
$1.21M
COMP 
$416.39 
↑4.5% 
$1.16M
CRV 
$2.0184 
↑4.9% 
$1.06M
LSK 
$3.0572 
↑1.5% 
$990K
KEEP 
$0.3181 
↑3.4% 
$932K
MANA 
$0.2537 
↑1.7% 
$894K
KAVA 
$3.6796 
↑3.3% 
$847K
KNC 
$1.7402 
↑7.1% 
$583K
ETC 
$11.270 
↑5.0% 
$564K
REP 
$31.950 
↓0.4% 
$557K
STORJ 
$0.6360 
↑9.2% 
$507K
ANT 
$4.1877 
↑1.6% 
$497K
PAXG 
$1747.2 
↓0.04% 
$476K
BAL 
$37.645 
↑6.4% 
$383K
REPV2 
$27.355 
↑5.2% 
$221K
MLN 
$36.848 
↓1.1% 
$210K
GNO 
$126.07 
↑2.1% 
$160K
TBTC 
$49741. 
↑0.3% 
$155K


#####################. Trading Volume by Asset. ##########################################

Trading Volume by Asset


The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.

Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (February 27 2021)

Figure 2: Mid-size trading assets: (measured in USD) (February 27 2021)

Figure 3: Smallest trading assets: (measured in USD) (February 27 2021)


#####################. Spread %. ##########################################

Spread %


Spread percentage is the width of the bid/ask spread divided by the bid/ask midpoint. The values are generated by taking the median spread percentage over each minute, then the average of the medians over the day.

Figure 4: Average spread % by pair (February 27 2021)



.


#########. Returns and Volume ############################################

Returns and Volume


Figure 5: Returns of the four highest volume pairs (February 27 2021)


Figure 6: Volume of the major currencies and an average line that fits the data to a sinusoidal curve to show the daily volume highs and lows (February 27 2021)



###########. Daily Returns. #################################################

Daily Returns %


Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (February 27 2021)



###########. Disclaimer #################################################

The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.

Source: https://blog.kraken.com/post/8076/kraken-daily-market-report-for-february-27-2021/

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Blockchain

Inverse Finance seizes tokens, ships code: Launches stablecoin lending protocol

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Shortly after culling its community of inactive members, one of decentralized finance’s (DeFi) strangest experiments is launching a new stablecoin lending product.

On Wednesday Inverse Finance revealed the Anchor Protocol, a money market built around DOLA, a protocol-native synthetic stablecoin. Based on “a modified fork of Compound,” in a blog post Inverse Finance founder Nour Haridy compares Anchor to Synthetix, which issues credit in the form of synthetic assets back by overleveraged collateral, and Compound, which issues credit in the form of crypto asset loans also backed by overleveraged collateral.

Ultimately, Haridy sees these models as providing the same utility.

“Lending and synthetic protocols both offer the same service: credit. Anchor brings the gap between them by combining them into a unified borrowing protocol.”

Anchor aims to accomplish this with a unique architecture that always treats the DOLA token as “$1 collateral that can be used to borrow other assets regardless of DOLA’s market conditions or peg.” Users deposit collateral, mint DOLA, and then can use DOLA to take out loans in other crypto assets or simply earn yield on DOLA. 

“For over-collateralized borrowers and leveraged traders, we offer them a one stop shop where they can share their collaterals across their synthetic and token borrowing positions, allowing higher capital efficiency and higher leverage,” says Haridy.

Haridy envisions Anchor will use DOLA for protocol-to-protocol lending similar to Cream’s Iron Bank, for undercollateralized lending (long a prize in DeFi), and for the protocol to “lend itself” credit to pursue yield farming opportunities.

No dead weight

Perhaps more interesting than Inverse’s development at the protocol layer are the moves they made earlier in the week at the governance layer. 

In what may be a DeFi governance first, On Saturday Feb. 20, Inverse community members put forth two governance proposals to seize INV — Inverse’s currently non-transferrable governance token — from inactive community members. On Thursday Feb. 25, the proposals passed, and not everyone was happy with the result.

Haridy says that the timing was intentional — right as Anchor, a protocol that might generate revenue for the DAO, prepares to launch, the community sheds freeloaders. 

“We needed to weed out our dead weight to reclaim some tokens for re-distribution to new active members soon. We also created an INV grants committee with the power to reward contributors and add new members to the DAO. Additionally, when free riders are removed, active members become more incentivized to contribute because they get a larger piece of the pie.”

While the unprecedented move may seem harsh, it’s also simply applying to governance the kind of aggressive style that put Inverse Finance on the map in the first place. By forcing token holders to participate under the threat of seized tokens, it’s helped with the development of Anchor as well. 

“This is a collaborative effort among many DAO members starting from ideation to development to internal reviews and testing,” says Haridy.

The next step for Inverse will be getting Anchor off the ground, and preparing for a world in which INV becomes tradable. Haridy says there’s a growing consensus in the community for tradability. This would mean that the DAO would give up the power to seize tokens, which could alter Inverse’s community landscape.

Haridy, however, seems unfazed by the looming shifts, already preparing the next innovation.

“This will significantly change the existing incentives and may reduce participation. Fortunately, there’s some work on a new alternative governance model that’s been happening internally to address this problem.”

Source: https://cointelegraph.com/news/inverse-finance-seizes-tokens-ships-code-launches-stablecoin-lending-protocol

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Blockchain

3 reasons why Reef Finance, Bridge Mutual and Morpheus Network are rallying

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As new institutional and retail investors enter the cryptocurrency space on a daily basis, large-cap top performers like Bitcoin (BTC) and Ether (ETH) attract the lion’s share of investor’s attention as they are the well-known ‘secure’ blockchain projects. 

Once these new investors get a taste of the mainstay cryptocurrencies and how to navigate the volatile markets, their attention soon turns to smaller cap coins as they search for the up-and-coming projects that could be the next big thing.

Currently, CoinMarketCap shows that there are 8,475 tokens and more are added daily. This makes it difficult to keep up with the latest developments and find solid projects with real-world potential.

With that in mind, here are some interesting projects that have been gaining strength over the past few weeks. 

MRPH/USDT

Morpheus Network (MRPH) is a blockchain platform focused on logistics and supply chain optimization through the use of its SaaS middleware platform which is integrated with emerging technologies.

Supply chain managers are able to use the platform to create a digital representation of their network as information collected is transformed into actionable data, with all steps in the supply chain being notarized on the Morpheus blockchain.

MRPH was trading at a price of $0.412 on Jan.15 before an influx of trading activity lifted the token more than 920% to a high of $4.44 on Feb.8.

MRPH/USDT 4-hour chart. Source: TradingView

The rapid rise in price was due in part to the fresh attention the project received from several well-known YouTube influencers and recent verifiable MRPH partnerships, such as China’s Qingdao Maple Leaf International Trading Co. and the possibility of a partnership with Coca-Cola in Latin America.

Speculations aside, the Morpheus platform currently has more than 100 integrations with industry-leading service providers including DHL, FedEx, SWIFT, Oracle, and Salesforce. With significant real-world partnerships and the attention of cryptocurrency influencers, MRPH has strong fundamentals and is likely to gain more attention from investors.

BMI/USDT

Bridge Mutual (BMI) is a more recent arrival to the decentralized insurance space but it has quickly garnered the attention of investors.

The insurance platform offers coverage for stablecoins, centralized exchanges and smart contracts. It also allows users to provide insurance coverage, determine insurance payouts, and recie compensated for taking part in the ecosystem.

BMI’s initial decentralized exchange offering (IDO) was conducted on Jan. 30 with a token price of $0.125 and it was first listed on Uniswap for $1.03. Since listing, BMI has rallied by 540% to a high of $5.46 on Feb. 3. Currently, BMI trades at $3.24 following the downturn in the market that began on Feb. 21.

BMI/USD 1-hour chart. Source: CoinGecko

Decentralized insurance has thus far been dominated by Nexus Mutual (NXM), but BMI’s arrival offers a fresh challenger to a field with growing demand due to the risky nature of investing in DeFi platforms.

REEF/USDT

Reef (REEF) is a Polkadot-based DeFi platform that aims to offer cross-chain trading powered by a yield engine and smart liquidity aggregator that enables automation of the exchange process.

One issue Reef developers hope to provide a solution for is high gas fees on the Ethereum blockchain that are currently making DeFi unusable for many community participants. The team also hopes to help connect liquidity pools from separate networks, avoiding the need for multiple accounts which can be difficult to keep track of.

REEF/USDT 4-hour chart. Source: TradingView

Work on the project began in the second half of 2020 with the completion of its IDO on Sep.30. Following its listing on Binance and Uniswap in late December of 2020, REEF price bottomed out at $0.0067 on Jan.13 and has since increased more than 750% to a high of $0.054 on Feb.11.

DeFi remains one of the hottest growth areas in the cryptocurrency sector and Reef is well-positioned to capitalize on its continued growth. As the Polkadot ecosystem grows its user base and provides solutions that provide relief from high Ethereum transaction costs, cross-chain functionality projects like Reef stand ready to benefit as decentralized finance goes mainstream.

Source: https://cointelegraph.com/news/3-reasons-why-reef-finance-bridge-mutual-and-morpheus-network-are-rallying

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