Recurring market commentary on what's happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.
Market commentary
Good Morning!
The crypto market was hit by some big news again.
After several recent merger reports, some prominent investors announced that they would launch a new cryptocurrency exchange called "Bullish". The exchange will offer its users new automated market making as well as lending and portfolio management tools. The entire project consists of investors, e.g. Peter Thiel, Alan Howard, Mike Novogratz, and Nomura. It has $10 bn in funding.
The Elon Musk tweet about how Tesla will end accepting payments in Bitcoin (BTC) over climate concerns resulted in market turbulence. In February 2021, the market went bananas with a move of over $5'000 after Tesla said it would accept Bitcoin as payment.
The news sent almost the entire crypto market south, and Bitcoin went from $56'000 to a low of $46'000 within mere hours. The currently bearish trend against rival Ethereum (ETH) has not been broken yet, but the more ecofriendly, fast, and feeless projects have started to pick up, and are outperforming the market quite a bit.
NANO was temporarily up 50%! The project is a decentralised next generation digital currency focused on addressing the inefficiencies present in existing cryptocurrencies. The more prominent Cardano (ADA) managed to reach an all-time high of almost $2.
Additional breaking news having a negative effect on the market is that Binance, the world’s biggest crypto exchange, is under investigation by the Justice Department and IRS.
The currently stressed market situation has resulted in the implied volatilities spiking briefly, simultaneously seeing the overall trading volume rise. Acceptance and mass adoption has definitively not been broken; it continues as the CME Group successfully launched Micro Bitcoin Futures. The derivatives exchange will (along with the full-size Bitcoin futures) strengthen the ability to help a broad array of clients.
It will be interesting to follow the market over the weekend. I suggest you prepare yourself for more action to come our way!
Happy Trading!
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