Cryptocurrency Weekly Analyst Report from delta.theta: December 8, 2021

Today, according to tradition, with the analyst delta.theta, we will consider all the most interesting things that happened on the market over the past week.

Consolidated after the drawdown in the week 23. 12 – 31. 13, the total cryptocurrency market capitalization suffered another drop, this time towards the end of the week 31 . 13-5.14. Within a few hours, the index fell from 2. 75 T to 2. 12 T, recovering by the end of the period only up to 2. 29 T. The overall drop for the week was 13. 06%.

If the week 26. 13 – 29. 13 the fall in the market was caused by the manipulation of large holders, then the reason for the fall in the week 32. 13-5.13 has become a banal “panic sale” in many ways. At the end of the week, the BTC price decreased by 16. 64%, descending in the moment in the area 44 06.

ETH price dynamics were slightly different from the first cryptocurrency. By the middle of the week, the price is from to 5000, then adjusted to district 4600 and only then there was a drop similar to BTC falling to the mark 4600. After the recovery, the final drop in the price of ETH at the end of the week was only 3.7%.

BTC and ETH balances on exchanges have mixed towards input as asset prices fall. Many traders sold their assets in the red, fearing a further decline in the market. Nevertheless, many large players bought out the drawdown.

Confirmation of the above can be found by examining the situation with the balance of stablecoins: their inflow to exchanges increased even during a sharp drop in prices (it is obvious that traders started them to buy out the drawdown) .

Regarding the volume of open interest for futures on BTC and ETH, this week we can again see the achievement of local lows, which is not surprising against the backdrop of price collapses and the general atmosphere of fear in the market. Nevertheless, it is important to note that both the price dynamics and the dynamics of open interest on BTC are more and more different from those on ETH.

News background of the week

On December 8, the US Congress will hold a hearing on the regulation of the cryptosphere. The attendees, in addition to the congressmen, will be the heads of leading American crypto companies, including Jeremy Alleir, CEO of Circle, Sam Bankman-Freed, CEO of FTX Trading, Chad Cascarilla, CEO of Paxos, and Dennel Dixon, CEO of the Stellar Development Foundation. With the current level of uncertainty in the market, the outcome of these hearings could have a dramatically positive or dramatically negative effect.

Defiance launches ETF on the New York Stock Exchange with a focus on NFT and the metaverse . The index consists of securities of global publicly listed companies, thematically related to ecosystems of NTF, blockchain and cryptocurrencies …

Goldman Sachs is actively exploring Bitcoin-backed loans along with other leading banks. Modelipuya tpoxctoponnie coglasheniya tipa pepo (cpocob zaimctvovaniya cpedctv by ppodazhi tsennyx bumag c coglasheniem Ob THEIR obpatnom vykupe c uchactiem ctoponnego agenta), banki izuchayut, kak mozhno pabotat c bitkoinom, ne dobavlyaya ego nA balanc, HOW and dpugie cinteticheckie ppodukty.

Fidelity Digital Assets will allow its institutional clients to use Bitcoin as collateral for loans. According to CEO Zach Prince, the initiative is partnered with crypto lender BlockFi, which will help manage risk by offering cash in the amount of 60% of the loan amount secured by bitcoin.

Possible resolution in the conflict between the SEC and Ripple is already close: by Monday, the parties will have to provide additional arguments on their positions in the proceedings.

WisdomTree, the ETF and ETP asset manager, has launched 1 crypto index in the US – RWM WisdomTree Crypto Index and 3 crypto indexes in Europe: WisdomTree Crypto Mega Cap Equal Weight (MEGA), WisdomTree Crypto Market (BLOC) and WisdomTree Crypto Altcoins (WALT).

Strike while the iron is hot: FTX plans to raise another $ 1.5 billion in another round of funding for its FTX US division. The funding round will potentially raise the FTX’s rating to 44 billion dollars, and FTX.US – up to 8 billion dollars.

About options

For options with the exercise date in December 2022, the level of open interest increased by 4.3% and amounted to 181 904 BTC. The number of Put options has increased relative to Call. Nevertheless, despite fears of further correction, traders’ vision of the end of the year remains bullish.

Growth rates of open interest on March options increased by 5.9%, reaching the mark 28 812 BTC. The key levels for this settlement date remain 197 06 for Call options and 44 06, 60 80

As expected, options exercise with date 29 November was one of the reasons for the local sale on the crypto market. The total open interest level is now 197 840 BTC. Key levels: 26 06, 44 06, 64 06 for PUT options and 120 06, 181 10, 197 06 for Call options.

For ETH options with exercise date 44 December, the level of open interest increased by 9.1% and amounted to 656 504 ETH. The gain was distributed evenly between Call and Put options. Max Pain price shifted from 2000 to the mark 2000.

Trading in options with an exercise date based on the results of the first quarter 2021 slowed down and increased by 5.3% (against 9.8% at the end of the previous weekly cycle) to the mark 366 366 ETH. The ratio of Call and Put options remained the same.

Open interest level for all options after expiration 28 November is 1 487 474 ETH. The trading volume for Call options is more than double that for Put options. The main levels are 15000, 10000, 10000 Call and 3000, 3000 Put.

In addition to standard market analysis parameters such as the volume of open positions in futures and options, accessible to a wide range of readers, under the new sub-heading “PRO MODE”, we provide an overview of a number of market parameters requiring special training or experience.

MarkIV for short term BTC options and Options Trading map (via Derebit & GVOL info)

week significantly influenced the landscape of the options market. An increase in the number of unbound put options traded signals an overestimation of the potential and growth rate of BTC. However, in general, the market is still in an upward trend – the number of call options is much higher, and the volume of trading in them is not falling. Last week, the most relevant trading level for put options was the strike 60 06 with due dates in December. For call options, it was popular to trade using the call spread strategy, when the sale of call options with a strike date in January (at the mark 100 06) and February (at 181 06) financed the purchase of strike call options 56 06 and 62 06 with a due date in December.

MarkIV for short term ETH options and Options Trading map

The picture of trading in ether was significantly different from that of Bitcoin. Traders reacted to the movement of the rate with a massive wall of put orders at mark 4 06 and the due date in December. The main trading activity was associated with the purchase of options with the exercise date in December and marks 4 768 and range 6 06 – eight 02. the dynamics of trading continues to remain positive for ETH, the number of deals with call options is three times more than the number of deals in put options.

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