Cryptocurrency Trend Table (UTC time)
Last week, after many months of uncertainty, a trade agreement was signed between the US and China. Since signing, Bitcoin (BTC) rose by $200 dollars and for the first time in 2020, it broke the $9000 resistance level. US-China trade news continues to dominate headlines and is having a profound impact on the global economy. Investors in crypto should pay close attention to further developments.
Cryptocurrency in relation to other markets
As we do every week, we have selected some alternative investment markets to find out to what extent they correlate with the crypto markets. Compared to the previous report, BTC was slightly more correlated with the stock market VIX index. The specific correlations are as follows. (data source：CoinMarketCap, Investing.com)
Cryptocurrency Market Panic Index
Based on the CBOE calculation method for the S&P VIX index, we used the near- and next-term put and call BTC options to calculate the VIX trend chart for this week (The lower the VIX, the lower the market panic). We can see from the graphs that the BTC VIX index did not move in unison with the ETH VIX index, but also that panic levels in both markets are lower than last week.
News of the week
Over the past few years, digital assets have attracted the attention from regulators and institutional investors alike, which shows us the asset class is maturing.
Recently, a technology company that has developed a smartcontract system on the blockchain announced plans to be listed on the London Stock Exchange. The company established a powerful protocol that uses distributed consensus to manage arbitration cases. It is said that its anti-collusion algorithm can be verified by trusted and verified experts before they are recorded on the blockchain and used to execute smart contracts. In our view, this development represents another step towards maturity and is positive in terms of investor confidence.