Recurring market commentary on what’s happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.
One week after the launch of the first US Bitcoin ETF (BITO), Bitcoin is now trading at USD 61,669 (8% below the all-time high). This is following Direxion’s announcement to launch a Short Bitcoin Futures ETF. By the way, the Securities and Exchange Commission (SEC) has not yet weighed in on this follow-up, and has 75 days to respond before Direxion’s ETF would automatically go into effect.
El Salvador bought the Dip
On Wednesday, El Salvadorian President Nayib Bukele tweeted that his government had “bought the dip” (slang for buying during a correction) adding an additional 420 BTC to its treasury, which is equivalent to roughly $25 million.
A total of $3.1 billion of BTC options are set to mature today, which, too, could be a source of volatility. Open interest profile shows a major interest towards calls, and given today’s expiry, this influences the short-term view. Currently, the top volume contracts have been around the $60,000 strike price.
Ethereum all-time high
Also, Ethereum (ETH) just hit a new all-time high (of around $4,399), and over the past 24 hours, it is up roughly 9.3%, extending its outperformance versus Bitcoin (BTC). Since BTC ETF is built using CME futures, there is some speculation about the likelihood of an ETH ETF following soon. This is supported by the fact that ETH futures are also live on CME. Traders have therefore started to speculate on higher ETH prices.
The ETH options market is much thinner than that of BTC, and, therefore, any meaningful flows can quickly move the volatility space. All skews are below par, with longer maturities reaching +20pts for calls vs puts. ATM implied volatility is trading significantly above realised volatility. Option flows are “paying up”, essentially betting that ETH will move explosively higher in the future.
Meme coins are back
Then we have the meme coins: they have been in the spotlight, with Dogecoin (DOGE) hitting a two-month high, and Shiba Inu (SHIB) being up 124% for the week. It is now actually competing for the ninth spot on the list of top digital assets by market capitalisation.
Polygon (MATIC) is back in the game, too, riding the rumours of Coinbase building its native NFT marketplace on the Polygon platform. So far, there are no confirmations as to which network might be chosen to build the NFT market for one of the leading crypto brokerages. The music is starting to play for many other coins as well. So, get ready for some price movements.
Happy Friday, and Happy Trading!
All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof are owned by Crypto Broker AG including, without limitation, all registered design, copyright, trademark and service mark rights.
This publication provided by Crypto Broker AG, a corporate entity registered under Swiss law, is published for information purposes only. This publication shall not constitute any investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication, Crypto Broker AG (a) does not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party’s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication.
Investments in virtual currencies are high-risk investments with the risk of total loss of the investment and you should not invest in virtual currencies unless you understand and can bear the risks involved with such investments. No information provided in this publication shall constitute investment advice. Crypto Broker AG excludes its liability for any losses arising from the use of, or reliance on, information provided in this publication.