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!

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