An overview of what is happening in the crypto markets, summarised daily by Crypto Finance AG Senior Trader Patrick Heusser in the market commentary.
Market commentary
Good Morning!
During the last 12 hours, we have finally seen a kind of consolidation in Bitcoin (BTC). This can only be considered healthy given the massive bull run over the last few days.
BTC is a dominant force on the market, and is making other major coins lag behind. Especially the Mid and Shit segments are currently underperforming. The newly launched Bitcoin Volatility Index (BVIN) has moved 10 points to a level of 84. The Index is an implied volatility index that also represents the fair value of a one-month bitcoin variance swap.
However, there was not only very positive news about bitcoin recently, Ethereum (ETH), too, will gain with mass adoption when the CME exchange launches ETH Futures in February 2021. The most interesting aspect of yesterday was the behaviour of the market participants. In contrary to other volume driven days we saw massive two-way flow. On one side, many market participants have taken profit and closed their positions; and on the other side, many have also opened new ones.
So far, the open interest in derivatives is at an all-time high, and bigger market moves are still to be expected. The traditional market will have a triple witching hour today, meaning that there is the quarterly expiration of stock options, stock index futures, and stock index option contracts all on the same day. This is definitively a very interesting consolidation towards year end.
Happy trading!
Copyright © 2020 | Crypto Broker AG | All rights reserved.
All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof are owned by Crypto Broker AG including, without limitation, all registered design, copyright, trademark and service mark rights.
Disclaimer
This publication provided by Crypto Broker AG, a corporate entity registered under Swiss law, is published for information purposes only. This publication shall not constitute any investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication, Crypto Broker AG (a) does not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party’s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication.
Risk disclosure
Investments in virtual currencies are high-risk investments with the risk of total loss of the investment and you should not invest in virtual currencies unless you understand and can bear the risks involved with such investments. No information provided in this publication shall constitute investment advice. Crypto Broker AG excludes its liability for any losses arising from the use of, or reliance on, information provided in this publication.
