February 20, 2020

Why did BTC dive today?

A market update following BTC's price drop along with some commentary on Rocketpool and NFT's.
3 min

BTC Price Update

BTC dives more than $800 USD. The dive saw 15 of the 20 top assets, by market cap, down at least 5% from this time yesterday. More than $100 million USD worth of long contracts were liquidated on BitMEX alone during the dive, 87 of the Top 100 Crypto assets suffered daily losses. BTC’s crash drove significant losses across most leading markets, with seven of the 10 largest alternative cryptocurrencies, by capitalization, posting 24-hour losses of between 6% and 8%. As of writing, Tezos (XTZ) and Chainlink (LINK) are the only leading cryptocurrencies to have outperformed BTC over the past day. While LINK is currently down nearly 3%, XTZ is the only cryptocurrency among the top 19 to post a 24-hour gain - currently up 4.2%. Some crypto analysts have speculated the drop may be related to $60 million worth of USDT newly minted roughly 18 hours ago. (Time right now is 6:00 pm AEST). The issuance took place approximately one hour before Binance’s platform went down for six hours of unscheduled maintenance, and followed several days worth of reports noting that Binance was suffering from shortages of stablecoins for margin loans.

Data Dash Video

This week our Chief Operating Officer, Jackson Zeng, featured in a video with the Youtuber 'Data Dash', discussing the investor mindset amongst brokerage clients.

Rocketpool - An interesting project

Rocketpool is an Ethereum Proof of Stake (PoS) Infrastructure service. Rocketpool allows users and businesses to earn rewards on their Ether holdings using the ‘beacon chain’, Ethereum’s new PoS chain due in 2020. We have discussed Ethereum's long-awaited move to PoS in previous newsletters. Rocketpool is a specialized service that allows user-friendly staking of Ethereum with much lower barriers to entry. There is no minimum Ethereum requirements or fixed-term on staking via Rocketpool, another feature which makes the service rather attractive. As the Cryptocurrency Industry continues to develop, services which help simplify and ease the complexities of this space can be well positioned to succeed as newcomers enter this market.

Non-Fungible Tokens (NFT's)

A Non-Fungible Token is a unique type of Cryptographic Token, one that cannot be mutually interchangeable. In simple terms, an NFT is an asset or 'good' in the form of a virtual token that cannot be replaced by another item. There are many industries which NFT’s can provide tremendous use for, such as those surrounding real estate and identity. However, in terms of short term use cases, the gaming space has proven to take heed of this technology. See below for an interview between myself, Jeff Zylstra, and Jeff Zirlin from Axie Infinity, a leading NFT gaming company.