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!
After breaking through $50,000 and trading a notch higher for a while at the beginning of the week, the market has calmed down and is consolidating at healthy levels. One of the major drivers of this bull run was most definitely the derivatives products.
We saw massive call option buyers in the 50,000 strike, and the funding in the perpetual futures widened substantially. The situation has relaxed in the meanwhile, and the premiums eased just before today’s expiry at the Deribit and CME exchanges.
Please note that an expiry always has the potential to record bigger short-term moves due to the reshuffling of the derivatives positions, e.g. an out of the money option can suddenly turn into an in the money option, and therefore change the position of market participants drastically, forcing them to act immediately.
ETH followed BTC
ETH followed BTC, and is still trading below the resistance level of 0.069. ETH was hyped prior to the London fork, but the hopes of lower gas fees did not materialise. Therefore, investors have now started to select alternative chains. Some of the altcoins have had impressive rallies.
The current situation will continue as long as BTC trades above the important support level of $40,000. A general retesting of the lows around $30,000 a couple of weeks ago seems to be out of reach now.
Tezos regained life
XTZ (Tezos) is another forgotten altcoin that regained some life after a Swiss Fintech trio enabled asset tokenisation via XTZ. Crypto Finance Group, InCore Bank, and Inacta are the three Swiss financial institutions that picked Tezos as their choice for tokenisation. Will Tezos have the power to be the new token standard?
Investing in crypto
Crypto venture funding is at an all-time high. As of the middle of the year, a sum of $17bn has been invested into crypto projects and NFTs might be a frontrunner.
Happy Friday!
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