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!
Crypto adoption is growing daily. In the last few months, we have been seeing massive amounts of capital/investment continue to pour into blockchain and cryptocurrency companies from venture capital and direct investment.
One example is crypto startup Fireblocks, which raised 310M USD in a Series D, tripling its valuation to 2.2B USD. The customer base increased to about 500 compared to 150 in January 2021. Another example is the FTX exchange, which has raised the largest funding round in crypto history to date. Its valuation has gone up to 18B USD after a sensational 900M USD Series B Investment round.
What's next?
Amazon announced plans to explore accepting cryptocurrency payments. Additionally, the company posted an online job ad seeking a "Digital Currency and Blockchain Product Lead“. The news from Amazon resulted in a market rally, quickly leading the way towards 40'000 USD with massive volume.
Bitcoin BTC (daily)
We have been trading around this level for a few days now, and await the July options expiry, which could lead to higher short-term volatility. Interestingly, the 40'000 USD strikes still have the highest open interest, followed by the 50'000 USD strike. The downside definitively relaxed when we broke through the 30'000 USD level two weeks ago, as most of the downside options have been rolled to lower strikes.
Bitcoin (BTC) has been the dominant coin in this weekly bull run. The spread between Ethereum (ETH) and all other Altcoins has been clearly expanded in favour of bitcoin. All the derivatives have increased funding rates and premium as well.
Ethereum / Bitcoin ETHBTC (daily)
The desk flow has mainly concentrated on BTC and ETH, but towards month end we expect a great deal of rebalancing of several funds and certificates containing cryptos, including the most popular DeFi coins.
Happy Friday!
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