A comprehensive overview of the latest developments in the (crypto) markets. Concisely summarized in a market commentary by the CVJ.CH editorial team.
Market Commentary
Bitcoin (BTC)
After the consolidation phase at around $36k a week ago, a selling wave led the Bitcoin (BTC) price back to the 50-day average (light blue line). Since the all-time high at around $42k, a short-term bearish trend consequently formed. This was broken at the end of January and Bitcoin is again eyeing the ATH.
The strength of Bitcoin's support below the $30k mark has now become apparent. We may still be in a consolidation phase between $30-40k, but an attack on the all-time high shouldn't be ruled out.
Ethereum (ETH)
Even during the last correction, Ether held up better (ETH) than Bitcoin. When the "King" finally regained some of its strength, ETH broke through the 2017/18 all-time high (blue line) after the fourth attempt. Since then, ETH has been bouncing back and forth between $1,580 and $1,700.
The parabolic run that started in early November at around $350 thus seems to have no end in sight. Within three months, the price of Ether (ETH) has increased almost fivefold (5x). Nevertheless, as mentioned in the ATH article, Ether still has upside potential relative to Bitcoin (ETHBTC).
DeFi Sector
The sector that consistently outperforms Bitcoin and Ether is DeFi. This is because we often see some rotation into ETH and the Ethereum ecosystem during Bitcoin consolidations. Another catalyst for the sector may have been the WallStreetBets debacle. Robert Leshner, founder of the DeFi protocol Compound, commented as follows:
It’s time for investors, regulators, and legislators to learn about, and embrace #DeFi.
This is our wake-up call to create fair, transparent, autonomous financial markets.
— ? Leshner (@rleshner) January 28, 2021
Whatever the actual reason for the rapid increase, not a single "loser" can be found in the entire sector. Some coins stand out with an extraordinary 30-day performance: Alpha Finance (ALPHA) +838%, Curve (CRV) +342%, Aave (AAVE) +324%, 1inch (1INCH) +304% and SushiSwap (SUSHI) +298%. The only real underperformer was Yearn Finance (YFI) with "only" +28%.
The DeFi "blue chips" thus continue to fight their way through the rankings. With a market capitalization of about $6 billion, Aave (AAVE) and Uniswap (UNI) are now very close to a place in the top 10. They would have to overtake Bitcoin Cash (BCH) with a market capitalization of $8.4 billion, which would correspond to a further increase of about 40%.
Disclaimer
All information in this publication is provided for general information purposes only. The information provided in this publication does not constitute investment advice and is not intended as such. This publication does not constitute and is not intended as an offer, recommendation or solicitation to invest in any financial instrument, including cryptocurrencies and the like. The contents contained in the publication represent the personal opinions of the respective authors and are not suitable or intended as a basis for decision-making.
Risk notice
Investing in cryptocurrencies, is fundamentally associated with risk. The total loss of the invested capital cannot be excluded. Cryptocurrencies are very volatile and can therefore be exposed to extreme price fluctuations in a short period of time.
