0/ Crypto markets are on a roll lately, with BTC spot and futures OI nearing ATHs. Meanwhile, macro indicators have been giving mixed signals on Covid recovery and interest rate expectations.
Are things getting overheated?
For a deeper dive 🧵👇
Are things getting overheated?
For a deeper dive 🧵👇
1/ BTC just recorded its highest weekly close on record last week; let’s let that sink in.
BTC ended the week at $63K on Sunday, topping the $61.5K weekly close on Apr. 6.
BTC ended the week at $63K on Sunday, topping the $61.5K weekly close on Apr. 6.
2/ OI in BTC futures is nearing its all-time high. OI growth reflects an increase in leverage. However, when the price of an asset is increasing, OI measured in USD is bound to go up.
FTX, Binance, Bitfinex, and CME all hit their highest level of OI in the last few days.
FTX, Binance, Bitfinex, and CME all hit their highest level of OI in the last few days.
3/ Perpetuals offer another litmus test on the market. Normally, a sign of an overheated market would be ‘perp’ funding rates surging erratically
Current funding rates still look compressed when compared to early 2021, suggesting worries about excessive leverage may be premature
Current funding rates still look compressed when compared to early 2021, suggesting worries about excessive leverage may be premature
4/ Following one of the largest increases in global liquidity on record, policymakers have started to temper expectations for future support on both monetary and fiscal fronts.
The global economy has rebounded since the depths of 2020, in many ways far faster than many expected
The global economy has rebounded since the depths of 2020, in many ways far faster than many expected
5/ It’s not much of a surprise that policymakers have looked to scale back their involvement.
The outlook going forward, however, is far murkier.
Key economic indicators have disappointed in recent months, portraying a weakening, rather than strengthening, recovery.
The outlook going forward, however, is far murkier.
Key economic indicators have disappointed in recent months, portraying a weakening, rather than strengthening, recovery.
6/ The market is now pricing in at least two Fed rate hikes by the end of 2022 as inflationary pressures continue to build.
Fed Funds Rate Futures have begun to accelerate over the last few weeks.
Meanwhile, the U.S Dollar index (DXY) has strengthened in recent months.
Fed Funds Rate Futures have begun to accelerate over the last few weeks.
Meanwhile, the U.S Dollar index (DXY) has strengthened in recent months.
7/ Tweets of the day!
A must read/listen on the intersection of crypto and law
A must read/listen on the intersection of crypto and law
https://twitter.com/delphiintern/status/1450104092001390593
8/ A unique take on Bitcoin’s economic sustainability
https://twitter.com/Truthcoin/status/1450106242098204675
11/ Crypto moves fast. Delphi has you covered. Sign up here to get Delphi's free daily newsletter delivered right to your inbox every weekday
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