Market Pulse (Week 33, 15/08/2022 – 22/08/2022

ETH options skew rises as traders bid up puts with The Merge closing in. ETH perpetual futures funding rates are printing negative. BTC technicals look shaky as it crosses key moving averages to the downside.

Aug 22, 2022
Market Pulse 300ppi

Chart of the Week: Shopping for ETH Puts

  • ETH options put skews (puts minus calls) dropped precipitously back in mid-July 2022, when Ethereum developers announced a soft target date of September for The Merge, as traders placed their bets on a price surge by dumping puts for calls.
  • However, since then, put skews have been quietly crawling back up, and the 1-week skew has currently spiked up to the highest level since mid-July. Puts are being bid up – ETH did skyrocket by 78% (as of 21 August) since The Merge target date was announced in July, and the increased bidding intensity for puts is perhaps a sign of traders looking to manage risk of an ETH reversal.
ETH Options Skew Shows Puts Being Bid Up chart

Fund Flow Tracker

  • Aggregated exchange balance of BTC has dipped sharply over the past 3 weeks, reaching a new yearly low, while ETH’s has been relatively stable.
BTC and ETH Aggregated Exchange Balances chart
BTC OTC Desks Balance and Spot Price chart

Derivatives Pulse

  • Implied vols and skews (puts minus calls) spiked during the past week. 1-week implied vol currently stands at 74.1% (vs. 58.7% a week ago) and 104.8% (vs. 84.8% a week ago) for BTC and ETH, respectively. The ETH put-call ratio has also been ticking up recently.
BTC Options ATM Implied Volatility chart
ETH Options ATM Implied Volatility chart
Options Open Interest Put-Call Ratios
BTC Options 25 Delta Skew
  • ETH perpetual futures funding rates printed mainly negative over the past week, while BTC’s remained in positive territory.
BTC Spot Price and Perpetual Futures Funding Rate
ETH Spot Price and Perpetual Futures Funding Rate chart
  • Asset managers’ net-long position in CME Bitcoin futures remains at an elevated level, and leveraged traders’ net-short position is near the lowest level YTD.
CME Bitcoin Futures Net Position by Trader Category
  • Leveraged traders are typically hedge funds and various types of money managers, including commodity trading advisors and commodity pool operators. The traders may be engaged in managing and conducting proprietary futures trading, and trading on behalf of speculative clients.
  • The asset manager category consists of institutional investors, including pension funds, endowments, insurance companies, mutual funds, and those portfolio/investment managers whose clients are predominantly institutional.
  • The dealer category consists of participants typically described as the “sell-side” of the market. These include large banks and dealers in securities, swaps, and other derivatives. The other reportable category consists of traders mostly using markets to hedge business risk, and includes amongst others corporate treasuries.

Technically Speaking

  • The positive technical picture that has been in place for the past one month is starting to look shaky, with BTC recently crossing the 10-day and 50-day moving averages on the way down.
BTC Crosses Moving Averages to the Downside

Price Movements

Top Movers by Category (Past 7 Days) table

As of 21 Aug 2022     Source: CoinGecko.com, Crypto.com Research
Crypto.com Market Indices

Source: Crypto.com

News Highlights

Catalyst Calendar

Economic Events calendar
Blockchain Launch and Upgrades (Estimated) calendar
Screen Shot 2022 08 22 At 4.47.16 Pm

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Research and Insights Team


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