Biweekly Market Report (2020/09/22~2020/10/06)
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BTC/USD (BitMEX)
10,955 (09/21) → 10,130 (09/24) → 10935 (09/28) → high-end consolidation →10,376 (10/02) → 10,764 (10/06) is a summary of the price movements of Bitcoin futures (BitMEX) for the past two weeks.
All price data were collected on 10/07 00:00
Following the heavy fall of US stocks on the evening of 09/21, the price of BTC immediately dropped to around $10,400. US stocks fell again after a slight stabilization on 09/22, causing the price of BTC to fall again to around $10,250 (Figure 1-A). Conversely, when US stocks rose steadily, BTC rose in a unique pattern (Figure 1-B).
On the evening of 10/01, the crypto derivatives exchange BitMEX issued heavy news. The US Commodity Futures Trading Commission (CFTC) believed that BitMEX was involved in illegal operations against anti-money laundering regulations, and filed a lawsuit against the three founders of BitMEX. The market reacted immediately and BTC price dropped from around $10,900 to around $10,450, with open positions dropping sharply (Figure 1-C). The market then gradually recovered its rationality, and the price slowly climbed back to around $10,700 (Figure 1-D).
ETH/USD (BitMEX)
375 (09/21) → 313 (09/24) → 368 (10/01) → 338 (10/02) → 354 (10/06) is a summary of the price movements of Ethereum futures (BitMEX) for the past two weeks.
All price data were collected on 10/06 23:00
The trend of ETH in the past two weeks followed that of BTC, but was slightly cleaner and more sustainable than BTC. At the beginning of these two weeks, ETH, like BTC, was affected by the US stocks and fell (Figure 2-A). Following the stabilization of US stocks, ETH also rebounded, and showed a relatively high continuity trend (Figure 2-B). During the BitMEX litigation incident, the price of ETH fell sharply, and the amount of open positions also fell (Figure 2-C). When the market stabilized, ETH gradually climbed back to around $350 (Figure 2-D).
Binance mainstream crypto trend analysis
In the past two weeks, mainstream currencies have risen by 2–10%. BNB has continued its recent high volatility in midst of Trump’s testing positive for Covid and BitMEX’s litigation. After falling by nearly 10% in one direction, BNB came back to around $28, marking a really strong rebound. In addition, the high rise of EOS benefited from the news that Google Cloud joined the EOS public chain network campaign late at night on 10/06, marking a 15% increase in one hour.
The cumulative rate of return (in USDT) for these cryptocurrencies in the last two weeks is as follows:
Market Outlook
The correlation between crypto and the traditional market is still at a high level, especially with the US election approaching. Trump’s every move will fetter the entire financial and crypto market. The noise generated by news lately have also been causing directional shifts. Trend-following investors should look to control the risk of their positions. It is recommended that the average fund allocation includes a small portion in directional investments and a larger portion in stable yield products.
This article expresses an independent view of Bincentive. Bincentive is not responsible for investment profits and losses, and investors should carefully consider various investment risks.
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