Thread by @skew_markets

1/. Q3 review from the skew team

Bitcoin didn't have the best quarter - consolidating around the psychological $10k level & currently indicating down 25%

2/. Most assets are well in the green this year.

Bitcoin is still up 100%+ but had an alarming September - so did Gold.

3/. Who said Bitcoin was too volatile for traditional markets?

Oil was in the spotlights this month!

4/. Gold has been a key story this year as central banks pivot globally towards easing.

We are watching the gold / digital gold narrative closely.

5/. Institutional interest did not last in Q3 following record sessions in June at the CME.

It seems like activity peaked when Libra was in the spotlights in June / early July with open interest halving since then.

6/. Bakkt launched last week with timid volumes - ~$1mln trading a day.

Commercial hedging activity occurring on the platform will be key to watch to take advantage of physical settlements.

7/. From a price action perspective, Bitcoin traded in the $8k - $12k range the entire quarter.

We did cross $10k quite a few times!

8/. BitMEX open interest tried to break out from $1bln on three distinct occasions- all were good sell signals in hindsight

9/. Over the quarter - total longs liquidated ~$5bln vs shorts $2bln

When open interest gets large, shorts seem to have a stronger hand as they might be less leveraged.

10/. Bitcoin moved on average 4.15% daily over the quarter

11/. Implied volatility drifted lower before spiking last week as we sold off - pricing in a 4.63% daily move over the next quarter - slightly higher than bitcoin volatility in Q3

12/. Probability of making new highs repriced lower as vol and spot came off - now seeing bitcoin > $20k by end of March at only 5% probability.

The bulls took a hit!

13/. Options market continues to develop - CME announced it will launch the product in Q1 next year.

This quarter - options traded on average $35mln notional a day.

14/. Ether had another challenging quarter - down nearly 50% and coming back dangerously towards the $100 level

15/. Ether and Bitcoin are still very correlated on a daily basis - a sign of poor market internals which never really disappeared since 2018

16/. It's not all bad for altcoin markets - ether recently bottomed relative to bitcoin

17/. Volumes have also been picking up after a period of calm

18/. It's worth watching DAI as Ether gets closer to the $100-$150 range where ~50% of total supply would be at risk

19/. On DeFi side, Compound did well this quarter relative to competition

20/. We also had some exciting news to share at skew - announcing our$2mln seed round last week

coindesk.com/kleiner-perkin…

21/. And launching our real-time analytics product skewAnalytics on skew.com

Any feedbacks please send them on [e-mail]

Wishing Crypto markets all the best for Q4!