Welcome to another edition of Qume Market Update. We take a look at how the crypto markets have fared over the last week.
Oil markets witnessed a ‘bloody Monday’ with US crude oil prices crashing to -$38 per barrel in a span a few hours on 20th April. Soon after, Bitcoin fell from $7,200 to around $6,800. Other crypto assets suffered similarly.
Volatility Indices
In our last market update, we mentioned that Bitcoin’s volatility last month was higher than anything seen in the last five years.
The volatility has since declined, returning to 4.5% on a 30-day average.
Derivatives Markets
Funding
The trend in funding rates has continued to be negative for most of last week with BTC perpetual trading at discounts mostly.
Trading Volumes
On major derivatives exchanges, trading volumes have remained consistent this month.
B/O Spreads
Deribit and bitFlyer show relatively huge B/O spreads over the last week.
Institutional money in Bitcoin
Recently, a quarterly report from Grayscale revealed that its BTC holdings have increased by $308.9 mn and its Ethereum Trust has increased by $110 mn, marking a major inflow of $503.7 mn of institutional money in crypto space.
Grayscale now manages $1.07 bn of crypto-assets and their strategy remains “long volatility”. A major inflow of institutional money before halving is bullish for Bitcoin and other crypto assets.
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