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 $900 billion Covid stimulus deal was the news item of the weekend. The most important parts of the deal are the following:
- Direct payments of $600 to most Americans ($600 per adult and $600 per child)
- $300-per-week in enhanced unemployment benefits through March
- $284 billion for the Paycheck Protection Program that provides forgivable loans to small businesses
- $82 billion for education
- $30 billion for the procurement and distribution of a Covid vaccine
- $10 billion for child care
Bitcoin
Bitcoin gained nearly 1,200 points over the weekend and is settling between 23,000 and 24,500.
King bitcoin is still dominating, and altcoins cannot keep up with its gains. Nevertheless, I feel the market sentiment at this level is very euphoric and overbought compared to other asset classes.
Let me briefly address the arguments.
- “Buy the rumor sell the fact”: The long-awaited stimulus deal in the US is now here. The markets have been pricing this in for some time. Could a disappointment now follow, as it turns out to be smaller than some market participants had thought?
- The dollar index: Since last Thursday, the dollar has appreciated by around 0.85%. If this momentum continues, it will have a negative impact on the bitcoin price.
- Option Expiry December 25: Of the total open interest in BTC options of December 25 contracts on Deribit (83,950 BTC), the following strikes have the largest shares. 1.) 16,000 strike 8% of OI; 20,000 strike 6% of OI; 15,000 strike 6% of OI; 14,000 strike 4% of OI; 18,000 strike 5% OI. With potential price pressure to the south, the 20,000 strike can act as a magnet and support.
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