Crypto Corner - Summary of the Week 06/07

data taken at 9:25am 10/07/2020
Written by: Yves, Head of Trading at Wirex

This week, the Bitcoin price evolved in a tightening range. On Wednesday, there was a short breach of the short-term downward trend. The price peaked at $9,479, followed by a fast correction the next day (source: BTC/USD Bitstamp).

Again, it is difficult to ignore this week’s correlation with the Equity markets as both markets dropped together after the Supreme Court ruled that New York prosecutors may obtain Trump’s financial records. On the positive side, the BTC/USD price outperformed again in the S&P 500 index by close to 0.30% .

The correlation of BTC/USD with the Gold price (XAU/USD) also increased this week, although the Gold price was more resilient. Since last Friday, the XAU/USD price outperformed the BTC/USD price by nearly 0.80% .

In fact, BTC has clearly outperformed the stock market this year so far, although fear has been very present in March and April, as measured by the Fear and Greed Index. The Fear and Greed index index combines indicators of volatility, momentum and social media among other metrics. Based on these metrics, fear is dominating greed this week and has been, since June 11th .

By contrast, Altcoin buyers surely mastered their fear this month. Most likely, they were also too greedy. One of the best performers this week is the Stellar Lumens cryptocurrency (XLM) with the XLM/BTC price soaring by nearly 28% since last Friday. Overall, altcoins recovered impressively, outperforming the Bitcoin price. The LTC/BTC and NANO/BTC prices are up by nearly 7%. The XRP/BTC price finally jumped from last week’s all-time low by nearly 12%. Bitcoin’s market cap is sowly decreasing, but still represents nearly 65% today (tradingview source). Some altcoins still have a lot of catching up to do : XRP/USD was down 10% in the first half of 2020 against nearly 27% for the BTC/USD price.

The surge in the altcoin market prices was most likely fuelled by the ephemeral Dogecoin price spike this week. The morally questionable viral Tiktok challenge most likely renewed the hopes of those who felt nostalgic for exceptional cryptocurrency rallies.

More seriously and fundamentally this week, the U.S senate hearings resumed. Lawmakers have valid concerns over the risk of bias and manipulation around cryptocurrencies. Eventually the blockchain industry is meant to solve all these challenges through more transparency. However the path forward for the greater public can only be forged with proper oversight (digital or human), and with relevant laws.

The wheels are in motion, and these wheels are already transporting Expedia’s clients. As mentioned in Travala’s press release, “Expedia Partner Solutions (EPS) has launched a new partnership with” and “Travelers can book trips using more than 30” cryptocurrencies.

On the retail side (Wirex), the Bitcoin buying interest is slightly lower. The ratio of Bitcoins bought over Bitcoins sold is 1.19 versus 1.30 the week before. We have mostly profit takers for XLM this week as the ratio is still low at 0.82. The XRP ratio is also lower at 1.79 versus 2.15 last week.

The above is an opinion piece and therefore should not be taken as financial advice. Please do your own research thoroughly when looking at Cryptocurrency.


Day 38 without access to my account or funds. No proper update, Wirex does not have proper support, they don’t care a ****** about customers.