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Amber Group Market Weekly Review 211227 | Bitcoin and Ethereum Market Insights, News Highlights

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Amber Group Market Weekly Review 211227 | Bitcoin and Ethereum Market Insights, News Highlights

Table of Contents

Digital Currency Market

Bitcoin and Ethereum Market Insights:

  • Bitcoin perpetual contracts are approaching pre-pullback levels, especially rapidly growing on Binance exchange. The open interest has increased by 50% (though the long/short ratio is still 5:1 compared to pre-pullback levels), indicating no significant change yet, suggesting that retail investors' bullish sentiment is not strong.
  • Over the past 18 months, Terra has built a mature smart contract ecosystem, and UST has become a dominant decentralized stablecoin. This week, Luna's price hit a historical high, while Anchor Protocol's deposits exceeded $10 billion.
  • Bitmex announced the launch of the token BMEX, which will be distributed to users in February 2022. The total supply of BMEX tokens is 450 million, with token holders enjoying fee rebates and higher returns on financial products.
  • YFI proposed a token economics plan, including investing $35 to $45 million in YFI repurchase assuming TVL and profit margins remain unchanged. After the proposal was made, YFI's price rose by 54%.

Options Market Insights:

During the Christmas holiday period, BTC spot reached a recent high of $51,810. After two days of consolidation, it saw a volume-based drop to the $49K level. Market sentiment shifted, and sell orders began to appear. Option market sentiment changes lag behind the spot market, with a 25D skew still leaning upward, providing an opportunity for spot holders to hedge by constructing Collar Spreads. As option buying diminishes post-FOMC, implied volatility begins to decline. We believe the current volatility level is still a good entry point for low delta option buyers.

Market News and Highlights:

  • Kraken founder: Kraken is developing a system to determine the clearing value of deposited NFTs.
  • On December 26, it was reported that Baidu and NVIDIA have reached an agreement to jointly build an AI metaverse. At the Baidu Create2021 AI Developer Conference in Beijing on December 27, Baidu will launch its first domestic metaverse product, "Xirang," with NVIDIA's Global Vice President and Asia-Pacific President Raymond The in attendance to deliver a keynote speech on "NVIDIA and Baidu Join Forces to Create AI Metaverse."
  • Solana lending protocol Port Finance secured a $5.3 million financing round, led by Alameda Research.
  • According to data from The Block Research, centralized cryptocurrency exchanges traded over $14 trillion in 2021.
  • MetaMaskSwap has generated over $250 million in revenue this year, possibly being one of the most "low-key" crypto products.
  • The decentralized autonomous organization ConstitutionDAO (People) announced that it has permanently destroyed multisig access permissions, becoming a fun meme coin.
  • Crypto companies raised over $25 billion in venture capital in 2021.
  • BitMEX announced the launch of the platform token BMEX.
  • Cross-chain protocol Anyswap completed a $60 million financing round, with investment from Sequoia China.
  • Terra's DeFi locked value surpasses BSC, ranking second in public chains.

Traditional Financial Markets

  • As signs indicate that the Omicron variant of the coronavirus may not be as destructive as feared, the stock market rebounded from last week's decline. As of Friday's close, the Dow Jones Industrial Average rose by 1.65% to close at 35,950.57 points; the S&P 500 Index rose by 2.28% to close at 4,725.78 points; and the Nasdaq rose by 3.21% to close at 16,308.21 points.
  • The yield on the 10-year U.S. Treasury rose above 1.50% this week.

About Amber Group

Founded in 2017, with operations in major cities across Asia, Europe, and the Americas, Amber Group provides crypto financial services to over 1,000 well-known institutional clients. With a cumulative trading volume exceeding one trillion dollars across more than 100 electronic exchanges, and assets under management exceeding $4 billion, they help clients manage the risks of various crypto assets, providing flexible investments and maximizing returns to optimize long-term value.

For product-related inquiries, please contact Amber's customer service team: [email protected]