Weekly Trader Insights #02 -3/4/2020


A relatively strong week for BTCUSD as it tests a weekly high @ 7250. Bitcoin is showing signs of decoupling as global markets continue to struggle. While the market is heavily LONG, note that OI (open interest)  is still very low, indicating most are still on the sidelines.

 

Binance’s acquisition of CoinMarketCap topped the headlines this week. A $400m valuation looks expensive but worth noting a large portion will be paid via BNB. The value lies in the user traffic, where that of CMC is 80% higher than that of Binance.

The exchange remains active despite the tough market conditions with:

1) Korea launch,

2) new mining pool,

3) OTC RFQ.

 

Chainalysis analyzes the impact of Corona on BTC payments. While all three categories (Merchant, Gambling, Darknet) took a hit, it’s interesting to see a dip in Darknet txs that have typically been uncorrelated to the price of BTC. Indicates the illicit industries may also be facing supply-chain struggles with flight suspensions and facility closures.

 

Despite MakerDAO’s recent bailout, Tron will proceed to launch its own version of the platform, Djed. Users will post TRX to borrow stablecoin, USDJ. Worth noting TRX presents even higher volatility than that of ETH which is a major risk factor to the system.

 

Vitalik shares that ETH 2.0 initial testnets will likely go live in April. However, it’s still unclear when we can expect the launch of phase 0. Expect to see an extensive period for debugging.

 

In all the market has been bullish this past week. Binance’s purchase of Coinmarketcap being the most significant news. With BCH halving in about 5 days and Bitcoin halving in 41 days we can expect to see a lot of movement leading up to the halving and undoubtedly after. If history is any indicator of how this will affect prices, we can expect to see big things.

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