Weekly Market Round-Up: Continuous Drop in Turnover

Abstract: Biden’s signing of the executive order on digital assets will have a positive impact on the overall ecology of the cryptocurrency industry in the US. South Korea’s new president Yoon Seok-yeol is friendly towards cryptocurrencies. The EU’s vote on crypto regulation named MiCA includes provisions to limit POW. The US inflation rate is at 7.9%, a record high in 40 years. The Federal Reserve would meet this week.

Turnover continued to decline. Market value of cryptocurrencies remained at approximately US$1.75 trillion last week, with mainstream coins experiencing big fluctuation and lower turnover. Spot turnover decreased by around 13% as compared to last week and turnover of Bitcoin futures dropped by 4% while turnover of Ethereum futures was down by 26%. Biden signed an executive order on ensuring responsible innovation in digital assets, which lays out a national policy for digital assets across six key priorities: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation. The new president Yoon Seok-yeol is friendly towards cryptocurrencies, raising the threshold of capital gains tax from cryptocurrencies. Another candidate Lee Jae-myung also used NFTs to raise fund for his campaign. The EU’s vote on crypto regulation named MiCA includes provisions to limit POW. The US inflation rate is at 7.9%, a record high in 40 years. The Federal Reserve would meet this week. Yugo Labs, the parent company of BAYC in the industry has acquired the two IPs of crypto punks and meetbits, allowing their commercialization. In addition, Disney might also launch NFT acquisitions. The overall market showed bearish sentiments, and ongoing volatility is expected to continue.

· Total market value posted modest changes. Last week, the total market value of digital assets remained at around US$1.75 trillion. Bitcoin fluctuated greatly within a range of approximately 14% or US$37,000 to US$42,000.

· Performance of top 100 digital assets was mixed. Last week, among the top 100 digital assets, 55 staged growth, while 45 witnessed decline.

· Exchanges showed a decline in turnover. Last week, turnover on the 10 exchanges tracked by us decreased by 13.2%. Binance moved down by -11.2%. Bitfinex, Bitstamp and Coinbase recorded an increase of +8.4%, and decrease of -13.2% and -24%, respectively.

· Turnover of futures increased. Last week, turnover of Bitcoin futures market declined by 4%, with little change in close position. Last week, turnover of Ethereum futures market declined by 21%, with little change in open position.

· Turnover of DEX decreased to US$0.01trillion. The decrease in weekly turnover of DEX dropped by 20% as compared to last week.

· Turnover of OpenSea decreased to approximately US$0.0004 trillion. Turnover of OpenSea decreased to US$0.0004 trillion, down by 7% as compared to last week.

About HashKey Capital
HashKey Capital, HashKey Group’s venture capital arm, is an institutional asset manager investing exclusively in blockchain technology, digital assets and crypto-financial infrastructures. It provides accredited investors and professional investors with secure access and diversified exposure to digital assets. HashKey Capital combines the agility and independent risk-taking traditionally found in the best venture firms, while offering differentiated access to the network of relationships found in one of the largest industrial and financial conglomerates in the world.
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