Recurring market commentary on what’s happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.
Market commentary
Good Morning!
The beginning of the week was rough on the market. Traditional markets took quite a plunge on account of the new Covid variant, Omicron. However, the overall situation managed to stabilise rather quickly, and the market pretty much saw a recovery leading up to the weekend.
Ethereum taking over the lead
The star of the week was definitively Ether (ETH). It outperformed almost every coin with a formidable market capitalisation. ETH almost reached an all-time high, but then went back down to trade at the significantly lower level of $4,565.
The ratio between ETH and BTC traded at 0.073 a week ago until the bull run began, breaking the resistance level of 0.79. It traded briefly at 0.083. Currently, the spread is trading at 0.08, and the resistance has moved to a new support level.
Overall trading volume has decreased over the last few days, as did the implied volatility in the front maturities. Funding has also not changed a great deal.
Altcoins outperforming Bitcoin
Over the course of the week, the ALT Index generally outperformed BTC by 3%, and the MID Index by 1.5%. The SHIT Index underperformed BTC by roughly 1%. Some of the most popular altcoins managed to follow ETH, e.g. SOL is up 12%, and ADA is + 6% since Monday. Expectations are running high for the rest of the crew (DOT, COSMOS, etc.).
After launching several Bitcoin ETFs on CME Futures, Fidelity has applied to launch a similar ETF based on spot. So far, the SEC has only approved Bitcoin Futures ETFs! Also, Ripple is launching a Liquidity Hub despite the SEC lawsuit over XRP. The product aims to be “a one-stop-shop for enterprises to source any tokenised asset”. Customers will have seamless access to crypto assets from a variety of global venues, including market makers, exchanges, OTC desks and future decentralised venues.
Happy Trading!
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