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.
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