Crypto.com Weekly Market Update (Week 50, 07/12/2020 - 13/12/2020)
BTC at $19K; ETH hovering at around $590; Volume & volatility dropped.
Market Recap
During this week, Bitcoin’s price correction was followed by a recovery. It retraced from the highs of $19,400 on Monday to lows of $17,500 on Friday. By the end of the week, it rebounded to slightly above the $19,000 level and crossed above the 10-day moving averages again, suggesting that it may retest record highs in the near term. According to TradingView, its dominance in the market cap also regained a three-week high of 64.5% on Sunday. The aggregate open interest of Bitcoin futures reached $7.1B, indicating the huge risk appetite of investors.
Ethereum also plunged from the highs of $600 to the lows of $530 in midweek. It partially recovered above $580 by the end of the week.
Overall, the price index increased slightly (+0.33%); while the volume index dropped very significantly (-24.56%) and the volatility index fell considerably (-30.81%).
Price Index
Top 3 gainers: XMR (+14.84%), XLM (+2.10%), BTC (+1.31%)
Benchmark: BTC (+1.31%)
One of the world’s oldest banks, the German Bankhaus von der Heydt (BVDH), has issued a Euro stablecoin on the Stellar network (ref), which may support the uptrend of XLM.
BTC’s bullrun was still supported by institutional investors. In addition to MicroStrategy completing another $650 million purchase (ref), US insurance company MassMutual also bought $100 million worth of Bitcoin (ref). Analysis from JPMorgan also suggested that an additional influx of institutional money is primed to flow into Bitcoin (ref).
There were reports that over 21 billion XRP were held on exchanges in preparation for the Spark airdrop (ref). It is likely that a portion of XRP buyers over the last few weeks bought purely to benefit from the airdrop, then sold after Flare Network took its snapshot (ref). Furthermore, the former Ripple co-founder Jed McCaleb immediately sold 30 million XRP after 266 million were unlocked for him (ref).
Volume Index
All tokens’ volume plunged except XMR (+21.73%).
Top 3 decrease: EOS (-39.34%), ETH (-33.40%), XTZ (-26.16%)
Benchmark: BTC (-21.53%)
Volatility Index
Top 3 gainers: XMR (+77.81%), ATOM (+31.62%), XLM (+24.34%)
Top 3 losers: XTZ (-50.07%), EOS (-46.70%), ETH (-35.92%)
Benchmark: BTC (-25.81%)
Top News
BREAKING: G7 Finance Ministers Support Regulating Cryptocurrencies
France imposes tougher KYC requirements for crypto, including peer-to-peer transactions
Euro stablecoin launched on Stellar by one of Europe's oldest banks
MicroStrategy announces completion of $650 million debt offering to fund bitcoin buys
MassMutual Buys $100M in Bitcoin, Bets on Institutional Adoption With $5M NYDIG Stake