Macro Headwinds Weigh on Crypto Markets

With risk assets remaining under pressure from higher US rates particularly in tech, crypto has struggled to stage any meaningful recovery after bouncing off just under 40k last week. Still see the potential for a final push lower to eek out a new local low on divergent momentum which may provide a signal for a more material rally. For now we wait for this down move to complete.


ETH has been tracking what BTC is doing and the ETH/BTC spread is stable above recent support around 0.074. Would look for this support to hold in the last push lower so that ETH can bounce strongly out of the crypto weakness.


We saw opportunistic buyers of Jan BTC calls but were quickly sold back out as the breakout didn’t happen and gamma sellers were coming! You can that from the open interest change being smaller than the trading volumes in those Jan calls. Interesting vol trade was to sell Feb 40k/50k strangle to buy 3 times the March 30k/70k strangles. Finally, the June22 40k/60k call spread went up in decent size as a buyer.


Filmed on on Tuesday 18th January 2022.


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