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!
Bitcoin (BTC) is currently trading at $16.7k (-4.6% in 7 days) while Ethereum (ETH) is sitting at a price of $1.21k (-6.22% in 7 days). The Ethereum vs Bitcoin ratio (ETH/BTC) has retraced slightly to 0.0725 (-1.78% in 7 days)
As presumed, last week’s FTX Chapter 11 filing has had a domino effect on the rest of the market. The likes of Gemini, BlockFi, Liquid, and Genesis have all halted withdrawals. Many are afraid the fall of Genesis could still cause the largest shakeout in the market. In short, they lend out the deposits of large crypto players, including Gemini and BlockFi, who promise their users yields. Now the worry is that the yield-generating counterparties cannot repay what they borrowed, and depositors essentially lose the funds.
"Don't trust, verify!"
The decentralised perpetuals sector is the best weekly performer, after fan tokens. The largest constituents, DYDX and GMX, both made sharp moves last Wednesday, and are currently up 14% and 23% on the week. Last week, GMX saw its highest exchange volume, while DYDX saw a 6-month high. Likely, they drew attention as perpetual traders will have to find a new home after the downfall of FTX, which was notoriously known for perpetual trading. The heightened DEX volume seems like an intermediate stint for now. What really will point to a renewed DeFi rally will be an increase in TVL across protocols if activity and development returns
Happy Trading!
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