Traders keep a risk-averse profile, pushing yields, trading volumes, volatilities, and ETF flows to multi-month lows. This dormant period is a reflection of traders threading carefully added uncertainty post Trump.
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A sleepy sideways market
Low volatility reigns as BTC booked a -2% loss for the week, while ETH showed some rare relative strength with its first positive week since mid January. ETH has gained from a rotation out of SOL following the weekend’s controversy over Argentina’s Javier Milei endorsing the Solana-based memecoin LIBRA, which crashed 95% from a peak market cap of $4.5bn. Risk-averse traders have sent yields, volatility, and volumes to multi-month lows. A pro-crypto Trump era still bodes very well for Bitcoin and the industry as a whole, but periods of short term uncertainty can still render market activity muted.
Bitcoin volatility has dwindled over the past week, accompanied by shallow ETP flows and muted activity in derivatives, while options traders have been seeking downside protection.lg...more