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 been a rather quiet week: Bitcoin (BTC) and Ethereum (ETH) are more or less in a healthy consolidation phase, but still in a wide trading range of 10%. BTC traded within $5,000 and ETH within $400. In the last 12 hours before Christmas Eve, both protocols began with a rally of approx. 4%.
BTC is trading above $50,000 and ETH above $4,000, both of which are important levels in order to continue the small breakout and maybe even a bull run towards year end. The spread has softened a bit and is trading at an important support level: 0.08. In general, the overall trading volume has declined over the course of the week, as did the implied volatility and the funding rates.
The situation for the global open interest buy options strike has not changed either in the last few days. BTC still has a huge open interest at $50,000 with nearly a balanced position between calls and puts. ETH’s open interest is concentrated around the $4,000 level. The December expiry (31.12.2021) is by far the most relevant month of this year. The current situation definitely has the potential for some interesting market behaviour during the last few days of 2021.
Other developments
What will catch our eye next year? There are so many interesting topics that will evolve over the next few months: just think of DeFi 2.0, CBDCs, and the overall NFT space, etc. It will definitively be another thrilling year of ups and downs, which I wouldn’t want to miss for anything.
Here are some interesting links I came across recently:
- QCP Capital on DeFi options vaults
- Chain Debrief on DeFi options vaults
- GSR Markets on DAOs
- Benzinga on CBDCs
I wish you a Merry Christmas, and Happy Trading!
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