Weekly Crypto Market Wrap: 19th April 2024
London: 19 April 2024 (TraderMade): Welcome to this week's Crypto Market Wrap! Let's delve into BTC's volatility, the potential game-changing Hong Kong ETF, Ethena Finance's growth, and the opportunities in the derivatives market.
Key Takeaways
- BTC Volatility: BTC dipped to just above $61,000 amid global events, notably the Iranian attacks on Israel.
- Hong Kong ETF Potential: A pending Hong Kong BTC ETF approval could allow mainland China-regulated access to Bitcoin.
- Ethena Finance's Growth: Onboarding BTC as a backing asset for USDe, Ethena achieved a TVL of $2.5 billion.
- Cryptocurrency Strength and Volatility: ANKR/BTC, ANKR/USD, and GRT/BTC led gains, while BNT/USD and XTZ/USD were among the top losers. GRT/USD, BCH/USD, and SKL/USD were the most volatile pairs.
BTCUSD
BTC's volatility dropped to just above $61,000, driven by a surge in liquidations following the Iranian attacks on Israel. As institutional access to crypto grows, BTC is increasingly used as a hedge during market closures. Monday's market sentiment seems optimistic about containing the crisis, but with the US in election mode and strained alliances, further aggression from Iran remains a possibility.
Technical Analysis
Despite the false break below $65,000, an upward trend is resuming. Real money buyers continue to step in during downturns, primarily through ETF flows. A potential Hong Kong ETF approval could have a substantial impact, potentially leading to a 10x increase in real money BTC buyers.
Key Levels
- Support: $65,000 / $70,000
- Resistance: $73,130 (ATH!)
Spot Desk
The spot desk saw balanced flows in the majors, but the CPI release caused a short-lived drop in BTC prices. A subsequent 6% surge was driven by strong buying in the $60s. Post-release, the desk experienced increased offramp activity due to:
- Increased demand for USDT as BTC rallied.
- The hotter-than-expected CPI pushed the dollar higher, causing the AUD to decline.
Ethena
Ethena Finance is gaining attention, recently onboarding BTC as a backing asset for USDe. Ethena offers decentralized yields from both centralized and decentralized exchanges and has achieved a TVL of $2.5 billion. Interest in purchasing Ethena's USDe stablecoin is growing.
Derivatives Desk (WHOLESALE INVESTORS ONLY)
The weekend's sell-off flushed out the basis rate, dropping it below 7% p.a on the 30-day futures contract for BTC. The term structure flipped into backwardation, with a spike in the front end and a sell-off in the back end, implying volatility.
Notable Trends
- Bitcoin Halving's Implications: Expected to halve mining rewards, the upcoming halving at block 840,000 is anticipated to impact the Bitcoin mining industry significantly.
- Solana's Resurgence: SOL is showing a bullish trend, and a robust recovery has pushed it above $170.
- XRP's Crucial Support Level: XRP has established a crucial support level above $0.60, suggesting a steady climb if these levels hold.
Cryptocurrency Strength Meter
Top Gainers
- ANKR/BTC: +16.13%
- ANKR/USD: +11.39%
- GRT/BTC: +7.32%
- NMR/USD: +7.04%
- 1INCH/BTC: +6.56%
Top Losers
- BNT/USD: -12.05%
- XTZ/USD: -3.54%
- DOGE/USD: -3.03%
- BCH/USD: -2.80%
- BTC/USD: -2.80%
Most Volatile
- GRT/USD: 29.99%
- BCH/USD: 28.11%
- SKL/USD: 27.01%
- XTZ/USD: 24.78%
- SNX/USD: 23.56%
Least Volatile
- ETH/BTC: 6.69%
- LINK/ETH: 7.37%
- ADA/ETH: 7.64%
- MANA/ETH: 7.81%
- LINK/BTC: 8.41%
Conclusion
This week has been a whirlwind for the crypto market. BTC faced volatility due to global events and potential ETF developments loom large. Ethena Finance is gaining traction, and the derivatives market is presenting intriguing opportunities for traders.
Stay tuned for next week's insights and market updates!
