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!
It has not really been a very spectacular expiry week so far.
Bitcoin (BTC) has been trading in a narrow range of $3,000 and has been exhibiting behaviours from both sides of the market. On the one side, there was constant pressure coming from Asian market participants, and on the other side, the huge derivatives open interest at $60,000 was pushing the market up towards this level. But in the end, the market was met by short-term resistance.
Ethereum (ETH) showed resilience throughout the entire week and outperformed BTC by a few percent. The ratio between Ethereum vs. Bitcoin (ETHBTC) is currently trading at 0.074, which represents a rather long-term resistance. I still expect ETH to outperform BTC towards the year end.
DeFi article by QCP Capital
I came across an interesting article from QCP Capital this week. QCP Capital is an innovative firm leading the change in digital economy trading in Asia. This is a topic that I follow closely. The article describes how decentralized Finance (DeFi) will continue to evolve using derivatives and their strategies. It is amazing to observe how the overall technology and trading processes are continuously being enhanced and developed, but the derivatives strategies are kept simple.
I came across the "covered write" strategies back in the 90s when the first electronic derivatives exchange SOFFEX (Swiss Options and Futures Exchange) was launched. And yes, these strategies work in a bullish environment.
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