Market Mondays 09/16/19

Bitcoin 30 day/7d returns are 0.11%/-0.9% so its safe to say it’s been a low volatility environment. Apart from a quick move below 10k and back up there has not been much movement. Realized volatility looks therefore like this:

Credit:BuyBitcoinWorldWide.com

NVT signal has worked off its July highs and retraced well with little pullback in price which shows resilience:

Credit:Charts.WooBull.com

Active addresses, median transaction fees, mining profitability all are on a lower cycle and are staying in the bottom percentiles of the year

Credit:BitInfoCharts.com
Credit:BitInfoCharts.com
Credit:BitInfoCharts.com

Arbitrage boundaries are also quite compressed between 5–15bps at most with the exception of Exmo as can be seen here, indicating no regional supply/demand imbalances:

Credit: Data.Bitcoinity.com

Derivatives mkts have also been noticeably quieter with Bitmex doing 1/5th of its average volumes ($1B vs 4–5B).

Credit:sk3w.co

Notably though in counterpoint to this, the bid offer spread for $10M USD on derivatives exchanges has reached the tightest spread. Bitmex is at 22bps, with Deribit and Others at around 2% plus. To put this in context, over the past 3 months, Bitmex has been around 45bps and the others around 5–6%!

Markets getting tighter on low volumes usually does not happen in traditional finance so either the liquidity is illusory or crypto is maturing!

The expiration of August futures did cause a large amount of Open Interest to recede and it is slowly building up again. It is obvious positions had not been rolled as much and volatility is directly correlated to Open Interest. We would watch this to get any understanding of where the market goes in the near term. To us, possible catalysts may be the Sep 23 launch of Bakkt futures. It will be interesting to see if they have volumes similar to Binance ($170M in week 1).

Check out The World’s Fastest Bitcoin Derivatives Exchange: Qume.io

Join the conversation in our Brand New Telegram Channel

--

--

--

The World’s Fastest Crypto Derivatives Exchange

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Earn $PNODE with Uniswap Liquidity Mining Program

YFDAI SafeSwap is open for Applications!

NFThub Q1 Update

Introducing the $DOWN social token:

AMA session Recap between Knit Finance and Neng Yuni Forum

CHANGENOW

My talk at Women in Tech Online Festival

Pinknode Token Utility — Part 1

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
QUME TEAM

QUME TEAM

The World’s Fastest Crypto Derivatives Exchange

More from Medium

Orne — deep journey into the woods!

Overwolf’s investment thesis

Introducing YogiBants

The 315 Forest — a special collaboration between Coorest and the 315 Guild