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!
The market continued its downtrend over the weekend: Bitcoin (BTC) lost almost 15% and Ethereum (ETH) was down 19%.
Bitcoin BTC (daily)
For a while now, BTC has not able to outperform ETH, but the spread between them became tighter and is trading at 0.078 (from 0.082 before the weekend).
Ethereum / Bitcoin ETHBTC (daily)
Both coins experienced a rise in trading volumes and a spike in short-term volatility. The sharp correction derives from the derivatives products as there is massive open interest in downside strikes in BTC between 40'000 and 46'000 as Elon Musk continues to tweet negatively about Bitcoin.
There are also plenty of short gamma positions around expiring in May 2021, so bigger moves can definitively be expected.
Some altcoins were able to stand out over the weekend and traded partially positively until the second wave of sales hit the market. E.g. ADA (Cardano) the open-source, smart contract platform; SOL (Solana), the public base-layer blockchain protocol optimised for scalability, and IOTA (MIOTA), a transaction settlement and data transfer layer for the internet of things (IoT) managed to resist the massive correction in general. The overall market has been rather vulnerable the past few days, especially due to recent news and the high inflation print of last week.
Overall, the three ALT/MID/SHIT indices outperformed BTC on the downside for the first time since a couple of days, if not weeks.
BTC vs. ALTPERP vs. MIDPERP vs. SHITPERP
On May 15th, the Bitcoin Cash upgrade was applied successfully to the blockchain. This particular upgrade provides improvements to start tackling user experience and offer better security against double-spending. In the past, Bitcoin Cash has had a convoluted story when applying updates. Just last year, the network faced a contentious hard fork when the most dominant node’s developers, Bitcoin ABC, proposed a new ruleset.
Happy trading!
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