OTC Desk trading update

Last week, we saw continued signs of strength across the crypto market with BTC closing the week another 8.6% against AUD, 5.8% on the USD. ETH boasting an impressive 10.8% against AUD, 8% on USD.

As BTC's dominance experienced a slight cool off from its' recent high of 54% (as reported by TradingView) - it has allowed money to flow down to assets such as AVAX, up 53%, as well as SOL and LINK both locking in significant gains and climbing over 35% on the week.

Even by crypto standards, that is impressive price action.

A look at the majors.

In the US equities market, the tech-heavy NASDAQ and SP500 blew through Oct 12th high's, with NASDAQ experiencing moves up 10 out of the last 11 days.

Match that with a look at the VIX, or the implied volatility of the S&P for the next 30 days, we see a sharp retreat down to the September lows of 14.

Traders use the VIX to better understand their risk and position sizing as it can act as a general gauge of fear in the market.

A VIX moving lower can be interpreted as favourable to exposure of risk assets, and when moving higher, it can be seen as a time to cover positions or hedge risk.

The week ahead.

Looking now to the week ahead, US data releases are boasting a triple threat with the focus on US CPI (Consumer Price Index) / Core inflation print, which is released at 12:30am Wednesday morning, Producer Price Index at 12:30am Thursday, Jobless claims at 12:30am on Friday (AEDT). These events can increase volatility and are worth noting down.

Even just a few weeks ago, many were questioning the drop in correlation between Bitcoin and the S&P500, furiously looking for signs to see which chart was wrong.

As it would have it, they were both right.

Sincerely,

Eric from the OTC Desk
BTC Markets

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Prices are accurate as of 14/11/2023.