Overview to the start of the week
The Crypto-Space experiences a turbulent start into the new week. We take a look at the most important events.
Bitcoin struggles to reach the $7000 mark
At the start of the week, Bitcoin is fighting at the important 7000 USD border. Currently, the No.1 crypto currency is at a rate of 7035 USD, the support zone at 7200 USD could not stop the bears. In terms of charts, the 7000 USD border is now the next support level. Further down the 50 day average at around 6940 would provide support. From a bullish perspective, the trend line at $7200 now represents a new resistance level, but it is manageable. Should the bulls be able to take the helm in the coming hours, an attack on the area at 7400 USD would be quite realistic. However, the traditional markets would have to play along for this to happen.
All eyes are on Wall Street
The focus of investors on Monday will be on Wall Street. When trading starts in New York at 3:30 p.m. (after our time), it remains to be seen whether last Friday’s price gains can be confirmed. Meanwhile, the DAX starts the new week with a price loss of 1.17%.
Million hack shakes DeFi
Yesterday, Sunday, hackers were able to penetrate the credit protocol Lendf.me and steal coins with a value of several million USD. First reports reported a damage of about 25 million USD. The loss for the DeFi market is likely to be much higher. Time and again, the underlying dForce network has been touted as a novel “superapp” on the decentralized financial market. The latest hack is likely to lead to a serious loss of investor confidence.
Bitcoin dominance declines despite halving hype
The Bitcoin Dominance Index is considered an important indicator to determine the relationship between “digital gold” and alternative assets. Although the third BTC Halving Event is imminent, the index has been falling since the weekend. Currently, the index is at a value of 63.4%. One trigger for the falling value is that Tether has recently printed USDT units with a value of USD 2 billion. These are included in the total market capitalization of Altcoins. However, a look at the current price movements reveals that the Altcoins continue to follow the Bitcoin. Stellar (+ 2%) and Zcash (+ 4%) are the only exceptions in the top 30.
Binance burns tokens worth USD 52.5 million
Not a week goes by without headlines about the renowned Exchange Binance circulating through the crypto landscape. With the 11th Token Burn in the history of NBB, Binance sets a new record. Never before have more coins been destroyed in one go. In a first statement, the stock exchange makes the following statement: “Binance has carried out its 11th quarterly burn, which amounts to BNB 3,373,988. This burn, which represents the activities on Binance’s spot, margin and futures exchanges […] from January to March 2020, has permanently taken the NBB out of circulation to the value of approximately USD 52.5 million. This is the largest NBB burn ever recorded, in terms of both NBB and Fiat volumes”.
Background Token Burn
The term “token burn” refers to the intentional reduction of the coin stock. This is primarily for deflationary reasons. In theory, a price increases due to the reduction of supply. The Token Burn was already anchored in the NBB White Paper. 20% of the respective quarterly profits are destroyed until the supply reaches a value of NBB 100 million. The current Token Burn has burned about 1% of the total supply. The destroyed NBBs had a value of USD 52.5 million.