The complete overview of the day's events on the (crypto) markets. Compactly summarized in the market commentary of the CVJ.CH editorial team.
Market commentary
In mid-August, crypto markets experienced a liquidation-driven correction. In the weeks that followed, Bitcoin stabilized just -20% below its recent local peak. At the end of September, the price started a slight recovery.
Crypto market volatility remains at historic lows. Even some traditional markets, such as oil, have seen stronger price swings over the past three months. The next catalyst for bitcoin would be an SEC decision regarding the first spot-based bitcoin ETF. Until then, further consolidation of crypto prices is considered likely.
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Weak ETF launch for Ether
Last week, Ether (ETH), the second cryptocurrency, celebrated the launch of several ETFs in the US. Similar to bitcoin products two years earlier, these were purely futures-based funds. However, amid the current pessimistic market environment, the rush for the ETFs failed to materialize. The two Ether funds from issuers ProShares and VanEck generated only USD 865,000 and USD 415,000 in volume, respectively, on the first day of trading; a weak result compared to bitcoin ETF turnover of over USD 1 billion on launch day.
Traders accordingly priced in the debut negatively. The ratio between Ether and Bitcoin (ETH/BTC) is currently trading at levels not seen since the summer of 2022 before the long-awaited merge. This is accompanied by a declining appetite for risk, which often translates into a lower ETH/BTC ratio.
Little movement in altcoins
The picture looks similar for alternative cryptocurrencies (altcoins). Only five of the top 20 cryptocurrencies by market capitalization had a green week. And even these price increases were in the low single digits. Chainlink (LINK) was the "top performer" of the past seven days with +2.21%. Downside moves also remained limited. Bitcoin Cash (BCH) was a slight outlier with -7.56%.
Disclaimer
All information in this publication is provided for general information purposes only. The information provided in this publication does not constitute investment advice and is not intended as such. This publication does not constitute and is not intended as an offer, recommendation or solicitation to invest in any financial instrument, including cryptocurrencies and the like. The contents contained in the publication represent the personal opinions of the respective authors and are not suitable or intended as a basis for decision-making.
Risk notice
Investing in cryptocurrencies, is fundamentally associated with risk. The total loss of the invested capital cannot be excluded. Cryptocurrencies are very volatile and can therefore be exposed to extreme price fluctuations in a short period of time.
