Weekly Report

13 October 2021

Greater Impacts from Macro Policies

Abstract: Bitcoin performed strongly in the secondary market though with a decrease in turnover. At the macro level, it is possible that the Bitcoin ETF could be approved by the end of October, which will become one of the major factors affecting the Bitcoin market going forward. In addition, the point of interest for DeFi last week lied in agreements of sub-sectors with some NFT avatars starting to issue tokens for empowerment.

  • Total market value increased. Last week, the total market value of digital assets increased from US$2.04 trillion to US$2.25 trillion. Bitcoin rose sharply to remain at above US$50,000 with a high of around US$56,000.
  • Performance of top 100 digital assets was mixed. Last week, among the top 100 digital assets, 51 staged growth, while 49 witnessed decline.
  • Bitcoin’s hash rate decreased. The average hash rate of Bitcoin declined week-on-week. The weekly average hash rate was about 143.63EH/s.
  • Bitcoin’s on-chain activity declined and Ethereum’s on-chain activity increased. The Bitcoin network saw an increase of 5.5% and 6.6% in average number of transfers and average number of active addresses respectively, with a 1.3% decrease in average transfer amount,. In the Ethereum network, the average number of on-chain transactions grew 9.5% with the number of active addresses and the average on-chain transaction amount up by 14.14% and 12%, respectively.
  • Exchange turnover increased. Last week, turnover on the 10 exchanges tracked by us rose. Binance moved up by 38.3%. Bitfinex, Bitstamp and Coinbase all recorded an increase of 20.6%, 9.9% and 31.2%, respectively.
  • Open position in futures increased to US$19.3 billion. Last week, turnover of Bitcoin futures market grew 21.7% week-on-week, with open position up to US$19.3 billion.
  • Bitcoin and stablecoin rose to US$123.5 billion. Last week, turnover of USDT increased by US$380 million. USDC increased by US$920 million, and BUSD increased by US$120 million.
  • The market was greatly affected by macro policies. Market value went up to above US$2 trillion last week as Bitcoin performed strongly in the secondary market to reach a high of US$56,000. Spot turnover of Bitcoin declined and turnover of Bitcoin futures gained while turnover of Ethereum futures fell and open positions in futures posted modest changes. At the macro level, it is possible that the Bitcoin ETF could be approved by the end of October, which will become one of the major factors affecting the Bitcoin market going forward. However, there are potential headwinds for its rise after the approval. Besides, Tether said it holds commercial paper of high-grade and the impact on the market was uncertain for now. The point of interest for DeFi last week mainly lied in individual sub-sectors. And for NFT, Bored Ape BAYC expected a token launch in Q1 2022 with its avatar projects starting to be empowered through token offerings. The development of public chains also relies on leaders of sub-sectors.

 

Digital Currency Market Capitalization Change:

Source: HashKey Capital Research, Coin360

 

Bitcoin Futures Daily Trading Volume:

Source: HashKey Capital Research, The Block

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