GB Market Commentary 19/08/2021 by Will Morris
Bitcoin continues to languish, currently trading at $44,700. Yesterday Bitcoin registered a green candle, on the daily timeframe, however, Bitcoin firmly remains in a downtrend. If this downtrend persists, strong support should be found at the $42,000 level. The 50-day EMA crossed the 100 EMA, on a 1-day timeframe, which is generally a very bullish sign. On a 4 hourly timeframe two attempts were made to break the 50-day EMA, with both failing, while support was found on the 100-day EMA. The 200-day EMA and Bitcoin are moving closer together, this should also provide a strong support band. Crypto assets have seen a general downtrend over the past few days, and this has been mirrored in equities markets. The S&P 500 has seen a significant drawdown, falling 1.78%, since all-time highs earlier this week.
Avalanche’s AVAX token surged 30% in one day as a $180m DeFi incentive program was unveiled, for onboarding ‘Bue-chip DeFi applications”. The program will bring two of the largest DeFi protocols, Aave & Curve, to launch on Avalanche. The first phase will launch on the platform’s native token, AVAX, as a liquidity mining incentive for Aave and Curve users over a three-month period. Avalanche launched on mainnet in September 2020, as a high-speed blockchain and smart contracts platform capable of processing 4,500 transactions per second. In May, Tether launched on Avalanche to offer high-speed, low-cost alternative to Ethereum. Aave founder Stani Kulechov said: “The deployment of the Aave protocol on Avalanche will allow users to leverage low transactions costs without compromising the security of the network.” AVAX token is up 200% in one month.
Cardano continues to surge, increasing 5% in 24 hours, 21% up in seven days. Dogecoin, Binance Coin , Ethereum and XRP are all down over 24 hours, however, are all up across the week. The volume of Ethereum held on exchanges has dropped to its lowest levels ever, with only 13% now held on exchange. Usually seen as a Bullish indicator, as assets are moved into custody, cold wallets or being staked. The volume of staked Ethereum continues to rise.
Binance has hired former US cybercrime expert, Greg Mahonhan, to focus on international anti-money laundering and investigation programs. The company’s international compliance team and advisory board has grown 500% since 2020.
Dogecoin accounted for 26% of Robinhood’s total revenue in the second quarter of 2021, while cryptocurrencies accounted for 41% of all revenue, growing from 2% a year earlier. New Robinhood customers were more likely to make their first trades in crypto rather than in stocks. Robinhood CEO, Vlad Tenev, stated that Robinhood wants to make is easy to trade any assets its customers are interested in, which is increasingly crypto. Robinhood registered $233 million in crypto related revenue in Q2, Coinbase realized $1.9bn, demonstrating a huge appetite among investors.