Hillstone Finance Weekly Update (Jan 30 ~ Feb 3)

Hillstone Finance
5 min readFeb 4, 2023

Welcome to the weekly update from Hillstone Finance. We have brought two news for this week:
1. Rayol Hwang participated in the NBN news
2. Duk-hyun Hong participated in the NBN news

NBN News (Jan 30, 2023)

Q. How long will Bitcoin continue to rise?

A. The market is positive but bitcoin has surpassed its previous buying range. The graph looks good but it has ups and downs. The concern is whether buying volume will increase but it is currently stagnant. The actual buying volume of bitcoin based on stable coins from overseas is decreasing. One factor of the current rise is that the economy’s actual indicators are not as bad as previously thought, leading to a reverse recovery in stocks and coins.

Q. Looking at the growth rate alone, Ethereum is going up more than Bitcoin.

A. Cryptocurrency market is currently doing well, with both short and long term investors seeing profits. The decline in interest rates has led to an increase in demand for Bitcoin, and if it continues to maintain above the $35k level, it may pave the way for other Altcoins to break through. However, it should be noted that if Bitcoin were to collapse, other Altcoins may also follow suit, so further analysis is needed for Altcoins.

Q. China to lead cryptocurrency market again?

A. In conclusion, the end of the Russian war and the influx of capital into China could potentially lead to inflationary pressures on the global market. However, it is believed that this situation will come gradually rather than simultaneously. Currently, the foreign exchange market has reached its limit of expansion and a large increase can be expected through the inflow of private and institutional investors from China through a recovery. Therefore, it is a situation of looking forward to the influx of capital from China, and the situation has come where Solana and Polygon are replacing most of the existing Chinese-born altcoins. Therefore, it is not seen positively when the bull market comes, as too much money has been shifted to new coins, causing a decline in the accompanying rise of old coins.

Q. What additional factors can lead to the rise of Bitcoin?

A. Recently, the employment situation of US fintech companies is expected to become a concern. If companies reduce their spending, which is currently keeping the economy from stalling, then it could lead to a difficult time for both the US and Korea. Despite difficult economic conditions such as the real estate market crash, the stock market and cryptocurrency have risen and consumption has not decreased as much as expected. Inflation is currently being controlled through interest rate hikes, but if it rises excessively and explodes without a break, it could result in a major disaster. However, if this stagnation continues, it could be a positive year with a favorable outlook.

Q. Several laws are being proposed over Bitcoin. What’s the prospect of becoming a reality?

A. It is expected that the topic of STO will arise in February and the market is already heating up in response. This could have a significant impact on market expansion, and therefore is attracting a lot of attention overseas. One concern is that the guidelines and flow of STO are uncertain and unclear, making it difficult to immediately apply to the market. If the framework is solidified in the February announcement, it is likely to become a strong issue for securities-type tokens, and if funding influx occurs based on STO, it may affect the global coin market, even in Korea.

Q. Taking a breath before the FOMC? Why isn’t there a big increase?

A. Altcoins are following Bitcoin, and as of now, they seem to be in a trend of continuous upward cycles. However, if Bitcoin rises again with a large margin in the current situation of repeated cyclical increases, it is expected that there will be several good opportunities for altcoin investment.

NBN News (Feb 3, 2023)

Market Maker (MM) is essential because initial liquidity is important on the exchange. Coins without liquidity are bound to have a small transaction volume because of the large loss to users. Only when initial liquidity is secured can continuous transactions continue and gains be made on the exchange.

With Onchain data, you can gain revenue by identifying token movements of MarketMakers.

Wintermute is a leading global algorithm trading company in digital assets. Wintermute is a market maker company that creates a flexible and efficient market in DEX and CEX.

Wintermute withdrew 2.99M$MATIC from Coinbase and 499K$MATIC from Kraken on January 7.

At this time, Wintermute’s average withdrawal price was $0.807. Later on January 13, Wintermute sent 1M$MATIC to Kraken. At this time, the average price for $MATIC’s exchange deposit was $0.915, and Wintermute earned $105K.

At the time of this transfer, $MATIC’s transaction volume increased every time Wintermuter sent $MATIC to the exchange, and $MATIC’s price rose a few hours later.

Next, Jump Trading is an aggressive Market Maker company that is looking for rapid volatility and trying to make a big profit from small price fluctuations.

On January 19, Jump Trading deposited 443B $SHIB as OKX. Similarly, the price of $SHIB went up every time tokens were deposited in the CEX.

As such, you can see that the trading volume and price fluctuations of coins follow after Market Maker’s Onchain activity.

That is all for this weekly update.

Thank you.

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