Crypto Daily News from ZBG Exchange

1. Market Wrap: Bitcoin Stabilizes After Margin Calls Fuel Biggest Plunge in Month

Bitcoin prices plunged as much as 19% in a violent sell-off Monday, the biggest of the year in dollar terms with a loss of more than $10,000, before quickly recovering and settling around $54,000.

Bitcoin trading around $53,884.35 as of 21:00 UTC (4 p.m. ET). Slipping 6.45% over the previous 24 hours.

Bitcoin’s 24-hour range: $47,780.75-$47,943.85

BTC trades between its 10-hour and 50-hour averages on the hourly chart, a sideways signal for market technicians.

The day’s price swings came on strong volume across major exchanges Bitfinex, Bitflyer, Bitstamp, Coinbase, Gemini, ItBit, Kraken and Poloniex. The volume spiked to above $8 billion, the highest levels in almost two weeks. For comparison, the figure was about $5.8 billion on Friday.

As CoinDesk reported earlier, blockchain data showed billions of dollars of bitcoin being transferred onto exchanges on Sunday, as this year’s doubling in prices to levels above $58,000 apparently motivated some traders to take profits.

2. Bitcoin Trades in Record $11K Daily Range After Dropping From $58K

Bitcoin’s average daily range to date in 2021 is $3,765.

Bitcoin traded within a record-setting $10,877 range Monday after plummeting from its all-time highs above $58,000 set over the weekend. This marks the leading cryptocurrency’s first five-figure daily price range.

Bitcoin dropped from its Monday high of $57,577 on Coinbase to a low of $46,700 before rebounding to pare most of its losses toward the end of the day, trading above $53,500 at last check.

So far in 2021, bitcoin (BTC, -7.23%)’s average daily price range is $3,765, per market data analyzed by CoinDesk, well below Monday’s record range.

Monday’s sharp correction and large range was not a surprise to some analysts. “The market hasn’t seen a pullback like this since early January. With this level of leverage in the system, many had considered it to be overdue,” said Coin Metrics data scientist Jon Geenty in a private message.

“This move can largely be attributed to record open interest in the futures markets and the liquidation that tend to follow,” Geenty told.

Before Monday’s correction, FTX CEO Sam Bankman-Fried described the cryptocurrency market as “massively over-leveraged” in an interview with The Block.

Year to date, bitcoin has gained 83%, continuing its more than 300% rally in 2020.

3. BNY Mellon Said to Hire Fireblocks for Bitcoin Custody Service

Earlier this month, America’s oldest bank said it was using outside partners for its crypto custody service but did not name names.

BNY Mellon is working with Fireblocks as part of the banking giant’s plans to hold bitcoin and other crypto assets on clients’ behalf, according to three people familiar with the matter.

The bank said earlier this month it was working with outside partners on the crypto custody play but did not identify them.

With bitcoin edging its way onto Wall Street, big institutions are looking for ways to accelerate their offerings, creating a bit of gold rush for crypto-native service providers.

4. $25M in DeFi Loans Liquidated as Ether Price Falls

The three-month high liquidation volume comes as Ethereum fees in dollar terms set a new record mark of $29 per basic transaction.

Decentralized finance (DeFi) lending platforms liquidated some $25 million in assets Monday as the price of ether plummeted as much as 15% to $1,655 before somewhat rebounding. That’s the highest amount in three months since Nov. 25 saw $93 million in liquidations.

Some 57% of liquidations worth $13.6 million came from lending platform Compound, followed by 33.2% on versions one and two of Aave worth an estimated $8 million, according to data provider DeBank.

“This was still a ‘small’ move and we still saw gas spiking to these crazy levels despite Binance disabling all exchange withdrawals,” one market maker who asked to remain unnamed said. “I wonder what would happen with a move like we had it in March.”

High gas fees are a likely contributor to DeFi liquidations. Gas, denominated in ether (ETH, -9.98%), is needed to close out positions so as not to be liquidated. The average transaction fee hit unparalleled record highs Monday at $29 for a basic transaction, according to Blockchair.

DeFi lending platforms enable investors to take out overcollateralized loans. According to data provider DeFi Pulse, some $17.4 billion in assets are currently locked in lending markets with MakerDAO being the largest at $6.54 billion total value locked (TVL).

5. MoneyGram Puts Relationship With Ripple’s XRP on Hold

The money transfer company said it “is not planning for any benefit from Ripple market development fees” in Q1. In last year’s Q1, MoneyGram banked $12.1 million in such fees.

MoneyGram is stepping back from its partnership with Ripple Labs citing the legal uncertainty swirling around the blockchain startup’s XRP token.

The money transfer company said Monday it “is not planning for any benefit from Ripple market development fees in the first quarter” of 2021, a break from last year’s Q1 when MoneyGram banked $12.1 million in such fees.

Ripple has been paying MoneyGram to use the XRP (+2.93%) token in international settlement since 2019 and first engaging in a pilot agreement with the service in 2018. Since then, MoneyGram has netted $61.5 million in “market development fees” from Ripple.

Those payments now appear to be on hold, at least until the legal rift between Ripple Labs and the U.S. Securities and Exchange Commission clears up. SEC prosecutors claim XRP is an unregistered security in violation of U.S. investments law, an assertion Ripple Labs has vowed to fight.

Founded in July 2018, ZBG is a Hong Kong-based cryptocurrency exchange, a global platform of ZB.COM.

ZBG.com has quickly become one of the top 10 exchanges in the world with its innovative, efficient and global operations, and is known as a “New First-Tier” exchange.

Currently, ZBG supports 11 languages, with an average daily activity of more than 160,000, providing over 3 million users around the world with trustworthy cryptocurrency trading, contract trading and other crypto asset investment services.

In the future, ZBG will continue to expand its global market and provide stable, safe and fast blockchain project listing, diversified crypto assets and blockchain derivatives investment services to more blockchain enthusiasts around the world.

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ZBG Team

February 23, 2021

Launched in 2018, ZBG is a Hong Kong-based crypto exchange, a subsidiary of ZB.COM. ZBG is focused on providing a trading platform for new and innovative tokens