|
BTC |
ETH |
Weekly High |
$26,824 |
$1,770 |
Weekly Low |
$24,805 | $1,627 |
For the first time in nearly 18 months, the Federal Reserve left interest rates unchanged, but the central bank's commitment to bringing inflation down to its 2% target made the market expect more rate hikes this year. The percentage of USDT liquidity in Curve’s 3pool increased significantly from 22% to 70%, and it caused slight USDT depeg. DAI flipped BUSD and now was the third-largest stablecoin in the crypto market. The desk observed the supply of ETH flowed from short-term holders to long-term holders, as supply which was moved for >6 months has increased by 3.4%.
Once again BTC and ETH showed some resilience in the wake of the alts sell-off. That said, ETH still underperformed BTC by 6% since the alts storm kicked in, which is not too astonishing as we previously expected ETH to suffer more in a spot downturn. Near-term IVs quickly cooled off in the rebound while the long-dated ones remained elevated compared to the levels before the selloff - 2-3 points higher for BTC and 5 points for ETH. Skew, on the other hand, implies a divided view on BTC and ETH - it returned nearly neutral for BTC and remained rather high for ETH, echoing the market’s view on a higher beta performance of ETH in a downward movement.
The Central Bank of China responded to the country's slowing economy by cutting rates for the first time since August, reducing the 1-year loan rate by 10 basis points to 2.65%, and also cutting the 7-day repo rate. Meanwhile, the US Federal Reserve kept interest rates at 5.00-5.25%, pausing for the first time in 10 meetings. The Fed's forecasts for inflation and growth increased slightly, and while core inflation showed slow progress, Jerome Powell noted that there are risks of inflation increasing.
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Amber Group