An overview of what is happening in the crypto markets, summarised daily by Crypto Finance AG Senior Trader Patrick Heusser in the market commentary.
Good Morning!
Ethereum and Bitcoin as a motor
What a weekend! The big ones are pushing things up. Ethereum (ETH) has been the main driver for the past few months. With Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC) and Cardano (ADA) joining the party, the DeFi music has stopped.
From a structural point of view, this weekend pump looks a bit overstretched. The basis for most of the large cap coins is on the very wide side. Also, the perpetual funding levels are elevated.
One of the main drivers for the price increase came from liquidations. In BTC we saw over $440 mio in total liquidations over the past 24h. It is pretty evenly distributed between Huobi, Binance, Okex, and Bitmex (see image below).
Additionally, I still believe that 10.5k in BTC$ will be a tough nut to crack. It would not surprise me if the market cools off a bit. At least to give the term and perpetual basis a bit of time to breathe and relax. If this is not the case, I see an even bigger risk that 10.5k will not be reached, and, instead, a sharp drop in price will be the consequence.
DeFi cooling down
As mentioned above most of the DeFi coins are showing signs of cooling down. Most of them are down double digit percentage numbers (see https://messari.io/screener/defi-coins-7EE8EDB1).
But also when you look at the MID and SHIT indexes on FTX, it looks like we are due for a correction. Some of it is coming from the vacuum BTC and ETH is producing with their performances but also against USD those indices have lost ground.
It is going to be an interesting week that is for sure. Volatility is most probably going to pick up and I am looking forward of some fighting between the bulls and the bears around the 10.5k level.
Market commentary
