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Slow start to October
It’s been a slow start to October with no clear direction. Bitcoin is slightly outperforming relatively to the other indexes, and stablecoins are once again gaining market share.Preview
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Unchanged sentiment in the crypto market
Not much change in the crypto market sentiment this week. We’re still comfortable in the Extreme Fear area, and the Fear and Greed Index is now at 24. One can argue that the sentiment has stabilized in the upper section of “Extreme Fear”, indicating that market participants are getting used to the low crypto prices we’ve seen lately. We’re at the same levels as seen after the lending contagion flush-out, but the sentiment has improved. However, the trend is still evident; market participants are cautious and not very optimistic at the moment.Preview
Sharp decline in the bitcoin volume
After several weeks of impressive trading activity in the bitcoin spot market, we see a sharp decline this week. The 7-day average bitcoin spot volume is now at $7.9 billion, down almost 40% from the September peak. In the current flat crypto market, it’s not surprising to see the trading activity decline as market participants await a clear direction.Preview
30-day volatility approaching yearly lows
The low 30-day volatility of 2.7% is a good summary of the state of the market. Without a deviation in August, we’ve had a fairly directionless bitcoin price since mid-June, mostly ranging around the psychological $20,000 level. The volatility is now approaching yearly lows, and all eyes are on the CPI update on Thursday, which can ignite global markets again. Leverage is still building up in the futures market, we believe that volatility is just around the corner.Preview