With BTC showing some signs of strength holding above $27k, the altcoin market has seen some strong performance over the past week.
$INJ is amongst the top, currently up over 28% as they released the new Avalon upgrade to the mainnet, improving the DEX’s performance, scalability and users experience.
Speculators flocked to the market as trading volume increased 65.77% across our convert portal, as buys entered the market driving price higher.
$OP was amongst the worst performers this week currently down 11.8% as the token supply has doubled with $580M OP Unlock hitting the market.
Convert Portal Volume Breakdown
Crypto to stablecoin transactions have jumped significantly this week, coming in with a value of 36.68%. With BTC holding above $27k, this is surprising as speculators move out of positions sidelining to cash.
Stablecoin to crypto placed 2nd with a value of 23.17%, despite the larger increase in selling volume, buyers still remain steady and consistent week on week.
Crypto to crypto transactions placed third with a value of 13.91%, as investors rotate their holdings in the hottest moving altcoins.
Options
Our desk observed that the BTC is trading within the $26k to $27.5k range for almost three weeks. Although BTC price jumped above 28k after the US debt ceiling deal news, the pump faked away and BTC price trades back in the range. BTC vol has been in a downward trend for a while. Right now it just hopping at the all-time low. ETH vol is tracking the same pattern as well.
In the meantime, ETH/BTC vol spread starts to get wider. At the beginning of this month, we mentioned the strategy to long ETH straddle / short BTC straddle on 180-day expiry when the spread was 0.6%. Now the spread has widened to 2%.
Overall market technicals
BTC
Looking at the chart, BTC has formed a new range at the previous support zone we identified.
Whilst the traditional instruments such ES and NASDAQ have been trending strongly to the upside, it seems BTC has taken a step back playing level to level, forming new ranges lasting for weeks at a time.
As of now it is hard to determine what direction the market is heading in and ultimately will be dependant on breaking out of the ranges and begin to trend in with a directional bias.
Macro at a glance
Last Thursday (05/25/23), the US reported their initial jobless claim as 229k, lower than the estimated 250k but higher than the previous 225k.
Last Friday (05/26/23), US core PCE Price Index is reported as 4.7% YoY, slightly higher than the estimated 4.6% and the previous month’s 4.6%. The core PCE Price Index is one of the indicators the FED keep a close eye on. The April figure shows some rebound in inflation, but the market was very bullish. S&P 500 closed 1.45% higher, and Nasdqa closed 2.75% higher. One of the reasons is that Fed Chairman Powell has mentioned that the banking sector troubles ease some pressure off the central bank to continue raising rates.
Wednesday (05/31/23), US JOLTs Job Openings number in Apr was reported as 10.103M, higher than the estimated 9.775M and the previous month’s 9.745M. The US labour market is showing strong demand in April even though we see another round of layoff announcements from big tech firms. The labour market is more resilient than some economists predicted.
Also, US House passed the debt ceiling bill, but the risk assets did not react volatilely as this result was predicted and priced in. Now the market moves the focus back to the FOMC meeting in mid-June
On Thursday (06/01/23), the US Congress passed the bill and eliminated the risk of a US default. After the announcement, Hang Seng Index was up 3.5% at 18,859, and BTC price was up 0.45% at $26930, hopping below the $27k level. ETH price was up 0.8% at $1875.
Binance algo orders
The Binance OTC desk recently made our Algo orders available to VIP clients looking to gain an additional edge in their trading. There are two types of algorithms available: Time-Weighted Average Price (TWAP) and Percentage of Volume (POV).
Algorithmic orders are automated instructions for trading that execute trades based on predefined conditions and parameters that can be set and adjusted by users prior to starting an order.
Our algo orders provide an array of benefits such as reducing costs, slippage and overall market impact. To find out more on our algos please visit here: https://www.binance.com/en/blog/otc/what-are-algorithmic-orders-twap-and-pov-strategies-explained-572102887905225345
Email: Liquidity@binance.com
