Liquid December 8, 2020 Futures Flying Bitcoin traded steady around the $19,000 level as the aggregate futures open interest remained just shy of $7bn. The growing use of derivatives is evident across most platforms with the exception of Bitmex which continues to languish following its spat with regulators. Liquidity begets liquidity and it will take a lot more than [...]
Uber Bullish? December 7, 2020 In range… The market remained well within the recent range and given the persistent leverage interest as evidenced by the steep contango term structure and futures & options open interest (OI) near record highs, suggests further upside barring any unexpected developments. The major risk associated with the “uber bullish” market is crowded trades and this [...]
Game of Alts December 4, 2020 Beacon of Future Hope The focus may be on Bitcoin and its seemingly inevitable run up to $20,000, but Ethereum looks particularly well-positioned for further upside. Fundamentally, the absence of any major network issues following the launch of the 2.0 Beacon chain supports bullish price outlook. Technically, $620 is proving to be the key level [...]
Choppy waters December 2, 2020 The Race to 20k The price action into the key $20,000 level is getting choppy but it is important to keep abreast of the bigger picture and that is ultimately, the trend higher remains firmly intact. Despite the aforementioned choppy price action, the futures aggregate open interest (OI) edged back towards highs printed last week [...]
Booming December 1, 2020 Record Highs Bitcoin maximalists proved the world wrong was the general tone of conversations across social media channels as the bulls were seen parading their price target calls in the wake of Bitcoin finally printing a new record high on Monday. The fact that many financial institutions, investors and economists, have remained sceptical of the [...]
Big moves November 30, 2020 Institutional Investment Market participants were caught off guard in the wake of the reports that Guggenheim Macro Opps fund has made steps to enter crypto markets. Specifically, Guggenheim Funds Trust filed an amendment with the U.S. Securities and Exchange Commission to allow its $5 billion Macro Opportunities Fund gain exposure to bitcoin by investing up [...]
Recovery November 27, 2020 Bitcoin is booming Bitcoin staged a healthy pull back in the wake of a dramatic collapse in spot price from the mid-$19,000 all the way into the low $16,000 area. By early Friday, Bitcoin was looking to reclaim the $17,000 level once again and while the aforementioned shake out did raise fears of a more [...]
Down, down, down November 26, 2020 Choppy Times The price action turned choppy in the closing hours of trade on Wednesday, in part due to the upcoming Thanksgiving holiday in the US which will likely dry some of the liquidity from the market, but also due to expiries this coming Friday. Still, the resilience showed up until then has been truly [...]
Crypto Extreme November 25, 2020 Macro Trends Narratives and broader macro trends can push valuations and multiples to extremes (too high or too low), even if the underlying fundamentals tell a different story. On that note, the Dow reached record highs amid what John Hussman of Hussman Funds described as capitulation in the face of overwhelming liquidity. With that in [...]
A New Chapter November 24, 2020 End of the Future As noted in the recent commentary the price action this week is expected to be impacted by the looming derivatives expiries, said otherwise range bound trade and any dips are expected to be bought up promptly. Still, despite the aforementioned expiries the curve structure remained rather steep and the open interest [...]
