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!
The volatility monster is back!
There are quite a few hot topics on my mind today. Let's start with the big coins.
The big coins
A fair share of liquidations have gone through the market over the past 24 hours. The total amount (in USD) was 1.1 billion (BTC, ETH, TRX, EOS, BCH, and LTC). I will admit that this surprised me somewhat. I did not think that the market was that leveraged. Obviously, I was wrong. See here.
The perpetual funding and term spreads have turned, and some of the major coins went into slight backwardation. Spot volume was not significant (compared to the March selloff) but on the derivatives side we have seen massive volumes go through in Ethereum (ETH) (the volume was not as great for BTC, but it was still a good day in terms of volume). OI (both currencies) suffered a noteworthy setback.
After breaking 10.5k in Bitcoin (BTC$), 9-9.5k is a possibility. The new s/r flip level is 11.2k.
In terms of ETH$: $365-380 needs to hold. Otherwise, $290 is possible. The topside level I would like to see being taken out in order to go bullish again is around $410.
BTC$ (daily):
ETH$ (daily):
The smaller coins
Now let's move on to the smaller coins. Remember when I said you should have your list ready when the market takes a hit? Now is the time to take it out and buy your first leg/portion of your favourite coin. I have a few in mind... If you would like to discuss, simply get in touch with our trading desk (via Telegram, email, or by phone). Find an overwiew of DeFi tokens here.
How is the farming sector holding up?
Surprisingly well, I would say. The yETH vault on the Yearn platform had to stop taking more ETH deposits. So far, they minted roughly $70 mio DAI. Currently, they have 375k ETH deposited, and they use roughly 50% in their strategy (they overcollateralise their CDP - collateralised debt position by 200%). This, in fact, seems to have worked well throughout this selloff. No ugly liquidations rumbled through the DeFi farming space (as far as I can tell). The TVL (total value locked) on DEFI PULS has not changed. Maybe people are still hesitating to take their investments out due to the high GAS price. But there are some initial signs on the chart that point towards a relaxation in terms of GAS.
