Weekly Report

30th June 2021

No Significant Improvement in the Overall Market Sentiment Seen

Abstract: Domestic policies still remained control-oriented, aiming to regulate the turmoil of virtual currency, and overseas developments were the major factor driving coin prices. The overall sentiment in the secondary market has not improved much, and market participants still took a wait-and-see attitude in general.

  • Total market value declined. Last week, the total market value of digital assets fell significantly from US$1.43 trillion to US$1.24 trillion. Bitcoin fluctuated violently in a broad range of US$29,420 to US$35,000.
  • Most of the top 100 digital assets fell. Last week, among the top 100 digital assets, 78 witnessed decline, while 22 staged growth.
  • Bitcoin’s hash rate decreased. The average hash rate of Bitcoin declined significantly week-on-week. The weekly average hash rate was about 91.29 EH/s, down 22.7%, and basically returned to the level in mid-2019.
  • Bitcoin’s on-chain activity grew and Ethereum’s on-chain activity decreased. The Bitcoin network saw a 10.45% decrease, 8.50% decrease and 4.43% increase 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 grew 3.55%, with the number of active addresses up by 9.16% and average on-chain transaction amount down by 14.52%.
  • Stock exchanges posted a combined 38.9% increase in turnover. Last week, turnover on the 10 exchanges tracked by us rose 38.9% week-on-week. Binance moved up by 33.9%. Bitfinex, Bitstamp and Coinbase recorded an increase of 148.9%, 44.3% and 37.4%, respectively.
  • Open position in futures fell to US$10.62 billion. Last week, turnover of Bitcoin futures market grew 36.6% week-on-week, with open position down to US$10.62 billion.
  • Bitcoin and stablecoin rose to US$105.9 billion. Last week, turnover of USDT reduced by US$100 million. USDC increased by US$1.5 billion, and BUSD increased by US$350 million.
  • Market participants took a wait-and-see attitude in general. Last week, the Central Bank held meetings with some banks and payment institutions about virtual currency transactions, aiming to regulate the turmoil of virtual currency in full-scale with domestic OTC as an important control indicator. At the exchange level, the OTC block trades on Huobi were cleared and the domestic operating company of OKCoin was rumored to be dissolved, showing that the exchanges have been more active in clearing up their domestic operating entities. On the overseas side, some institutions and exchanges, mainly driven by their own spontaneity and initiative, have been actively promoting carbon neutrality/ESG, i.e. evaluating their own ETFs and Bitcoin mining energy under their entrusted management and offsetting the impact by greening, new energy investment or buying carbon credits. This also eased institutional investors’ concerns before investing. In the secondary market, the turnover of both spot and futures were on the rise last week while open positions in options dropped drastically with no new position after the settlement day on 25 June. Participants in the secondary market still adopted a wait-and-see attitude in general and such situation is expected to continue 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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