Recurring market commentary on what's happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.

Market commentary

Good Morning!

After last week’s sell-off, Bitcoin (BTC) has recovered, moving towards the magical USD 40,000 level, and even flirting with it just a couple of hours away from the end of May expiry. It is a $1.8 bn expiry in options with higher open interest in higher strikes, e.g. USD 40,000/USD 45,000 and especially USD 50,000.

Throughout the entire week, it felt like all dips were bought up consistently, despite the fact that most investors preferred to stay on the sidelines. The overall traded volume and implied volatility decreased. The 3-month at the money options are currently trading at 90%, which is a minus of 55% since the last sell-off on May 23rd.

Ethereum (ETH) recovered from its low of around USD 1,800, and is now trading at USD 2,680. An impressive move was registered in the ETH/BTC spread, which gained 22% in the course of this week. Traded volume and implied volatility in ETH has eased towards expiry. The 3-month at the money options are trading at 138%, which is greatly lower than at their peak of 195% just last weekend.

In general, BTC has outperformed all three FTX indices, ALT/MID/SHIT, this week, and it will be interesting to follow the altcoins when BTC stabilises again and continues its bull march towards old all-time highs.

I have attached an interesting report about inflation. Unfortunately, it is in German, so please use google translate if you cannot read German. The main take away is this: everywhere you look, prices are exploding: for food, building materials, electrical appliances, electricity… Everything is getting more expensive. And not just by a little! Everyone who uses bitcoin opts out from this devastating game and helps drive the decentralised currency reform – that may become very necessary – forward.

All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof are owned by Crypto Broker AG including, without limitation, all registered design, copyright, trademark and service mark rights.

Disclaimer

This publication provided by Crypto Broker AG, a corporate entity registered under Swiss law, is published for information purposes only. This publication shall not constitute any investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication, Crypto Broker AG (a) does not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party’s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication.

Risk disclosure

Investments in virtual currencies are high-risk investments with the risk of total loss of the investment and you should not invest in virtual currencies unless you understand and can bear the risks involved with such investments. No information provided in this publication shall constitute investment advice. Crypto Broker AG excludes its liability for any losses arising from the use of, or reliance on, information provided in this publication.