Weekly Report

9th June 2021

Market Sentiment Remained Sluggish

Abstract: There were still unknowns in detailed policies to be implemented, and media control has been strengthened this weekend. With continuing sluggish market sentiment, there was a general wait-and-see attitude.

  • Total market value increased. Last week, the total market value of digital assets rose slightly from US$1.46 trillion to US$1.58 trillion. Bitcoin fluctuated violently in a range of US$35,000 to US$40,000.
  • Most of the top 100 digital assets gained. Last week, among the top 100 digital assets, 33 witnessed decline, while 67 staged growth.
  • Bitcoin’s hash rate rose. The average hash rate of Bitcoin grew slightly week-on-week. The weekly average hash rate was about 150.45 EH/s, up 4.3%.
  • Bitcoin’s on-chain activity declined and Ethereum’s on-chain activity also decreased. The Bitcoin network saw a 5.50% increase, 2.48% decrease and 29.24% decrease in average number of transfers, number of active addresses and average transfer amount, respectively. In the Ethereum network, the average number of on-chain transactions reduced by 2.88%, with the average on-chain transaction amount down by 40.02%.
  • Stock exchanges posted a combined 30.2% decline in turnover. Last week, turnover on the 10 exchanges tracked by us decreased by 30.2% week-on-week. Binance moved down by 26.6%. Bitfinex, Bitstamp and Coinbase all recorded a decrease of 53.5%, 31.6% and 45.2%, respectively.
  • Open position in futures rose to US$11.4 billion. Last week, turnover of Bitcoin futures market fell by 23.7% week-on-week, with open position up to US$11.4 billion.
  • Bitcoin and stablecoin rose to US$102 billion. Last week, turnover of USDT increased by US$460 million. USDC increased by US$540 million, and BUSD increased by US$1 billion.
  • Market sentiment remained sluggish. The forum held by the Sichuan Energy Regulatory Office of National Energy Administration last week has listened to the views of all sides, yet no specific implementation details was revealed. The Office delivered a relatively neutral wording compared to that of Xinjiang and Inner Mongolia authorities while we will keep a close eye on development of domestic policies. Also some of Weibo’s famous digital currency bloggers were blocked over the weekend, making the next signal even more important to be aware of. US employment data was weak in May, which favoured risk assets. In the secondary market, the continued decline seen in the turnover of both spot and futures last week showed that market sentiment remained relatively gloomy, but it may not go so far as to trigger significant panic sell-off, and fluctuations at this level will be expected for a period of time in the future.

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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