The price of Bitcoin fell dramatically yesterday, tripping sell stops by breaking the key $10k level, which in turn saw the largest crypto asset by market cap fall into the mid-$9k area. A break below $9.2-9.0k region would open up the door for further downside, especially if retail joins the exodus party. Expiring CME Bitcoin futures (August) are also adding to some of the price volatility. As a guide, Bakkt clients will be able to start depositing their funds in the Bakkt Warehouse for physically delivered Bitcoin (BTC) futures starting Sept. 6. Storage will start weeks before the scheduled launch of the daily and monthly crypto futures platform in the United States, which is set for Sept. 23. The platform will enable the physical delivery of Bitcoin with end-to-end regulated markets and custody.
In the DeFi space, the total amount of Ethereum (ETH) locked in Maker is now below $250 million at $240.3 million, and the total locked in Decentralized Finance (DeFi), as per defipulse, is $440 million, having peaked around $680 million in late June. Interestingly, while the likes of Maker, InstaDApp and Compound are down close to 10%, dYdX is up around 4%, with the total amount locked close to $16.4 million. The dYdX platform lets users lend, borrow, or margin trade any supported asset (as of May 2019: ETH, Dai, and USDC, with more planned). Crypto traders can take leveraged long positions of up to 4x their collateral’s value (3x for shorts). Loans and margin trades can remain open for a max of 28 days, after which they’re automatically closed out. At the same time, Synthetix is showing plenty of resilience, with its total amount locked at $25.7 million. As of May 2019, the Synthetix platform supports over 20 Synths representing fiat currencies, commodities (e.g., gold) and cryptoassets. Stocks, indices and other derivatives are expected to be added soon. Born as stablecoin project Havven (originally on EOS), Synthetix rebranded and expanded its scope prior to launching on the mainnet in February 2019.
In other news, TSMC, the world’s largest independent semiconductor foundry and chip supplier for Bitmain, is facing multiple lawsuits from its competitor, GlobalFoundries (GF). GF, the second biggest semiconductor foundry by sales after TSMC, filed several lawsuits in the United States and Germany, accusing Taiwanese TSMC of infringing on 16 GF patents. Additionally, GF is seeking damages from TSMC based on TSMC’s unlawful use of GF’s proprietary technology in its “tens of billions of dollars of sales,” as portrayed by GF.
Elsewhere, Mike Novogratz said that Bitcoin’s (BTC) price may have fallen below $10,000 again but that is no reason to doubt the 2019 bull market. The founder of merchant bank Galaxy Digital noted that regardless of the latest price trends, Bitcoin was still up over 200% this year. As a reminder, in early August, Novogratz said global macroeconomic turbulence would fuel favorable price movements going forward, while a month previously, he pledged not to sell any more of his holdings below $14,000.
Thank you for reading,
The BeQuant’s Analytics team