Adjusting to a Post-FTX World
Adjusting to a Post-FTX World
A couple of weeks ago, we discussed several critical risk vectors remaining in the market and provided our take on each matter. Our near-term view was that it was more likely than not that most of the contagion from the implosion of FTX had been sifted through, but due to the unknown status of Digital Currency Group, investors might not be getting paid enough for any risk assumed in the immediate term. Fast forward to today, and we are still waiting for a resolution to the DCG saga. We offer a brief update on DCG below, but for the most part, we discuss the shape of the market nearly a month removed from the downfall of FTX.
Everyone Had the Same Idea
We were not the only ones who took a less active approach to the market over the past couple of weeks. Following the exit of one of the largest market makers in crypto and the freezing of billions in customer deposits in FTX, we have understandably witnessed markets become devoid of volume.
Below we can see that the 7-day moving average for $ETH volume across all exchanges is at its lowest in recent history. While some of this inactivity could be attributed to the holiday last week, the primary driver is likely a lack of participation due to uncertainty and the recent incineration of invest...Reports you may have missed
TURNING CAUTIOUSLY OPTIMISTIC There is a lot of pain in the ETHBTC chart. It peaked in December 2021 and, save for several brief rallies, has been on a downwards slope ever since. It peaked at just under 0.09 and currently trades around 0.038. Source: TradingView Fortunately, we have anchored most of our attention on BTC and SOL this cycle, as BTC has continued to lead the market in a generally...
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Market Lacks Convincing Signs of Market Froth, Major Demand Side Catalyst for CORE (Core Strategy Rebalance)
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TRUMP MAINTAINS A SLIGHT EDGE, BUT IT’S ESSENTIALLY A TOSSUP Well, it's here, folks – the moment that markets have been building up towards since January—the general election to decide the next President of the United States. As our clients know, we have been closely tracking polling and prediction market trends over the past several months, and these have served as a key input in our recommendations. Odds for both...
