Weekly Report

7th July 2021

Overall Market Sentiment Comes in Average

Abstract: GreyScale will unlock a large number of BTCs in July, but the impact on the market is arguable. Kazakhstan is a relatively popular destination for mining migration. Overall market sentiment has been average. Participants generally remain cautious as they are awaiting the launch of relevant policy.

  • Total market value increased. Last week, the total market value of digital assets rose from US$1.24 trillion to US$1.39 trillion. Bitcoin fluctuated in a broad range of US$32,800 to US$36,300.
  • Most of the top 100 digital assets gained. Last week, among the top 100 digital assets, 80 staged growth, while 20 witnessed decline.
  • Bitcoin’s hash rate decreased. The average hash rate of Bitcoin grew significantly week-on-week. The weekly average hash rate was about 90.88 EH/s.
  • Bitcoin’s on-chain activity declined and Ethereum’s on-chain activity also decreased. The Bitcoin network saw a 5.17% increase, 8.08% increase and 25.39% 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 grew 1.23%, with the number of active addresses up by 1.39% and average on-chain transaction amount down by 24.59%.
  • Stock exchanges posted a combined 40% decline in turnover. Last week, turnover on the 10 exchanges tracked by us tumbled by 40% week-on-week. Binance slumped by 36.4%. Bitfinex, Bitstamp and Coinbase dropped by 75.5%, 49.0% and 40.1%, respectively.
  • Open position in futures rose to US$11.9 billion. Last week, turnover of Bitcoin futures market fell by 40.6% week-on-week, with open position up to US$11.9 billion.
  • Bitcoin and stablecoin rose to US$106.4 billion. Last week, turnover of USDT reduced by US$160 million. USDC decreased by US$420 million, and BUSD increased by US$670 million.
  • Market sentiment has been average. GreyScale will unlock a large number of BTCs in July, but the impact on the market is arguable. In terms of trading, more participants will buy coins on the spot market to pay off their debts. For mining migration, Kazakhstan is a more crypto-friendly destination than the United States. Canaan and Bit Mining both chose to settle in Kazakhstan. Russia is also another destination option for mining migration. The overall sentiment of the secondary market has been average. The funding rate has fluctuated around zero and the direction of its movement is unclear. Participants generally remain cautious as they are awaiting the launch of relevant policy. Continued fluctuations are expected over a future period of time.

     

    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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