Market Performance Comes in Average

Abstract: The Federal Reserve released minutes of its January Meeting, with no new changes to the January resolution. In addition, the Russia-Ukraine military conflict has also hit the crypto market. It is expected that the market will continue to be volatile in the context of tightening macroeconomic environment. The investment opportunities in sub-sectors for instance Layer 2, however, should not be ruled out.

• Total market value declined. Last week, the total market value of digital assets declined to around US$1.8 trillion. Bitcoin fell around 15% to below US$40,000.

• Most of the top 100 digital assets fell. Last week, among the top 100 digital assets, 7 staged growth, while 93 witnessed decline.

• Exchanges showed a decline in turnover. Last week, turnover on the 10 exchanges tracked by us decreased by 22.4%. Binance moved down by -24.7%. Bitfinex, Bitstamp and Coinbase recorded a decrease of -9.8%, -4.7% and -16.3%, respectively

• Turnover of futures declined. Last week, turnover of Bitcoin futures market declined by 22%, with close position down to around US$0.02 trillion. Turnover of Ethereum futures market was down by 12%, with open position dropped to US$0.007 trillion.

• Turnover of Dex maintained at US$0.02 trillion. The decrease in weekly turnover of Dex posted modest changes as compared to last week.

• Turnover of Opensea decreased to US$0.0007 trillion. Turnover of Opensea decreased to US$0.0007 trillion, down by 35% as compared to last week.

• The overall market showed weakness. Market value of cryptocurrencies went down to approximately US$1.8 trillion last week. Bitcoin dropped by 15% to below US$40,000. Spot turnover declined by approximately 18% as compared to last week and turnover of Bitcoin futures decreased by 22% while turnover of Ethereum futures fell by 12% and all open positions recorded reduction. The Federal Reserve released minutes of its January Meeting, with no new changes to the January resolution. Bitcoins revealed attributes of risk assets under Russia-Ukraine military tension. In the sub-sector, Opensea suffered a phishing attack last week and turnover of NFT plummeted by above 30% as compared to last week, witnessing a downtrend momentum. It is expected that the downward pressure remains relatively high in the context of tightening macroeconomic environment. The investment opportunities in sub-sectors for instance Layer 2, however, should not be ruled out.

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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