As the global spread of the new crown pneumonia epidemic accelerated, market panic continued to heat up, investors frantically fled the market, and all financial assets in the world, including safe-haven precious metals, suffered indiscriminate selling and collapsed.
In the foreign exchange market, from March 12 to March 19, the U.S. dollar index seemed to be the biggest "winner". After falling to a low of 94.64 at the beginning of the week, it made a strong counterattack, reaching a peak of 98.82 and closing up for 4 consecutive trading days.
In terms of the gold market, gold surged to a multi-year high of $1,703.09 per ounce at the beginning of the week and then plummeted. The daily chart came out of a "waterfall" plunge and closed sharply lower for five consecutive trading days. It plummeted 29.32% to $1806.28 an ounce, the largest weekly drop in history.
In the crude oil market, due to the fierce crude oil price war between Saudi Arabia and Russia, the decline in oil prices from March 12 to March 19 was the largest weekly decline since December 2008. However, US President Trump announced the purchase of crude oil reserves, which made the Oil prices were moderately hemostatic on Friday. U.S. WTI crude oil plunged 23% last week to $31.73/barrel, hitting a low of $27.34/barrel that week; Brent crude oil fell 25% last week to $33.85/barrel, hitting a low of $31.02/barrel that week.
In terms of the stock market, March 12th to March 19th can be described as the "bloody week" of the global stock market. The plunge of stock indexes in many countries triggered the "circuit breaker" many times and caused some authorities to resort to short-selling bans. This is seen in the long river of history. It is also rare. Although U.S. stocks rebounded strongly on Friday after experiencing the sharp decline in the previous few days, the Dow rebounded 1985 points, an increase of 9.4%, the largest single-day increase in history. The S&P 500 rose 9.2 percent, while the Nasdaq rose 9.3 percent, its biggest one-day gain since October 2008. But this still failed to restore the huge weekly decline in US stocks. Last week, the Dow fell 10.4%, the S&P 500 fell 8.9%, and the Nasdaq fell 8.2%. Meanwhile, while European shares ended higher on Friday, they posted heavy losses last week as the rapid spread of the coronavirus outbreak continued to dominate investor sentiment. The pan-European Stoxx 600 index rebounded to close up nearly 1% on Friday, but the index fell 18.7% last week, the biggest drop since October 2008. The broad index tumbled as much as 11 percent on Thursday, its biggest one-day drop ever. In addition, Asian stock markets were also "sorrowful" last week, and stock markets in many Asian countries plummeted many times, triggering "circuit breakers."
In recent years, the weakening effect of US macroeconomic policies and cyclical economic adjustments have led to downward expectations for the US economy, thus objectively prompting the stock market, which is a barometer of the economy, to face adjustment pressure. Therefore, factors such as the epidemic are only factors that induce large fluctuations in the stock market, and macroeconomic fluctuations are the root cause.
The U.S. stock market plummeted and triggered the fifth "circuit breaker" in history. The linkage effect of multiple circuit breakers in a short period of time has also caused the stock markets of many countries around the world to be "bloodbathed" and trigger "circuit breakers" many times. Many countries have taken emergency measures to prohibit short selling to curb Market crash momentum. The Federal Reserve cut interest rates to essentially zero on Sunday (March 15) local time and launched a massive $700 billion quantitative easing program to protect the economy from the impact of the virus.
Affected by the slump of traditional mainstream financial assets, BTC and ETH have not been able to survive alone, plummeting by nearly 50% within a day, and the attributes of safe-haven assets are shattered. At the time of writing, BTC and ETH have rebounded to a certain extent, but Defi based on ETH mortgage loans has also been affected The impact of the sharp drop in ETH has triggered a huge liquidation, and countless investors have suffered large losses. If ETH falls further, it may further trigger an avalanche effect.
Operation of Defi platform
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Stablecoin Information
Stablecoin Information
Defi news summary from March 12th to March 19th:
MakerDAO has added a collateral auction circuit breaker mechanism, and the lending rate has been reduced to 0.5% to promote market liquidity
MakerDAO will add USDC as a pledge asset to improve Dai liquidity
iearn launched a zero-cost arbitrage DeFi liquidation tool integrating Aave, 1inch.exchange, and Curve
Fidelity-Backed Crypto Security Firm Fireblocks Integrates DeFi Platform Compound
MakerDAO zero-bid liquidates $8.23M worth of collateral, resulting in 5.67M DAI in distressed debt
A brief review of Defi from March 12th to March 19th:
Affected by the sharp drop in the currency market this week, the DeFi financial system encountered a big challenge. On March 12, the entire DeFi market experienced a liquidation of more than 20 million US dollars. The main liquidators were MakerDao, Compound and dYdX. Then the MakerDao community urgently released a new topic, proposing to adjust the lending rate to 0.5% and increase USDC as a pledge asset to increase market liquidity. But even if both issues are passed, the Maker lending system has generated a large amount of bad debt before that, which needs to be repaid through additional auctions of Mkr. As of press time, the price of Mkr is down more than 60%.
HyperFin is a sub-ecology of HyperBC, and it is the financial service window of HyperBC. This DeFi Global Market Weekly Report is written by HyperFin Research Institute, hoping to help users understand the current development of the DeFi market and grasp relevant content information. Welcome to follow HyperFin (http://hyperfin.com/#/) official website for more Defi information.
