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!
It has not been a spectacular week: there have been no major moves or notable news. The overall market traded more or less in a narrow trading range, with Bitcoin (BTC) being the dominant coin. And this despite yesterday’s FOMC (Federal Open Market Committee), which decided to keep its benchmark interest rate close to zero. Nevertheless, the committee signaled that there could be two rate hikes in 2023, so stocks slid a bit and gold dropped quite a bit. But crypto defended the general market pressure surprisingly well.
Bitcoin BTC (4h)
In the middle of the week, BTC attempted to break out, reaching the $41,500 level. But this move was mainly driven by the larger open interest in the $40,000 options strike, which expire towards end of June. The trading volume has been constant throughout the week, whereas implied volatility decreased.
Ethereum (ETH) experienced similar behaviours and patterns, but was constantly losing ground versus BTC. The ETH/BTC spread is trading at 0.062, a minus of 25% of the high from the beginning of May (approx. 0.082). ETH relevant open interest is currently at $3,200 in favour of call options.
Ethereum ETH (4h)
Bitcoin outperformed the major indices, e.g. ALT/MID, and DeFi. The SHIT Index, however, managed to stand its ground, bouncing back with 5% after being hammered the previous week.
The overall market situation still remains in a healthy consolidation. In general, perpetual funding is slightly negative to neutral, the long dated term futures are trading in contango with a reasonable premium, and the volatility term structure normalised in the front months. These are all signs of a neutral, non-stressed market environment.
And last but not least: another crypto exchange (in addition to Coinbase) has plans to go public in 12-18 months … according to the CEO of Kraken.
Happy Friday!
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