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 has stabilised, having returned to the important $40'000 support level for BTC. Currently, this support level is being defended just before the May derivatives expiry.

Bitcoin BTC (daily)

The dominance of ETH eased greatly after Wednesday's sell-off, and the spread is trading approx. 16% lower from the ATH; the current level is 0.068. The overall volume and implied short-term volatility has declined, and has almost normalised for BTC again, but remains stressed for ETH.

Ethereum / Bitcoin ETHBTC (daily)

Futures contracts have recovered and are trading with a premium again. Open Interest (OI) in BTC is still high at around $40'000, dominated by put options and $50'000 being balanced. The situation for ETH indicates similar patterns with larger positions at a level of $3'200.

The overall situation in the three indices, ALT/MID/SHIT, has changed as well, and the dominance of BTC has returned this week. All three underperformed BTC in a range of 15% - 19%.

BTC vs. ALTPERP vs. MIDPERP vs. SHITPERP

The environmental impact of BTC has been partly responsible for the sell-off this week and continues being a topic. Galaxy Digital has published a report on bitcoin’s energy consumption. It is definitively an interesting read, addressing value and providing a conclusion that greatly depends on what you personally believe in.

Bitcoin will not be a part of the global economy
Bitcoin will exist in parallel with the current financial system
Bitcoin will become the global monetary standard

It astonishes me that if you compare the energy consumption of bitcoin with that of the banking system and the gold industry, it only consumes around half of each pillar.

Please find a valuable opinion piece on bitcoin's energy consumption and climate change here.

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