Weekly Market Analysis

4 min readOct 25, 2021

2021.10.16–2021.10.22

SUMMARY

Macro environment:

•Fed governor Bowman supports the earliest November to start debt reduction, the market is expected to raise interest rates next September probability of up to 90%; U.S. stocks were mixed, with the S&P rising for a seventh straight day to a new record high; The European Central Bank is expected to have a new stimulus program next year, nearly 90% of economists say it may raise interest rates early.

Spot market:

•Market Overview: Overall cryptocurrency market capitalization stood at $2.609 trillion, up 6.23% from the previous last week.

•Technical analysis: Both BTC and ETH broke through their previous highs and then quickly retreated, leaving the uptrend unchanged.

•Stablecoin and Capital flow: f USDT issue volume increased significantly this week. USDT premiums continue to be negative, BTC balance in exchanges’ wallets outflowed slightly, ETH outflowed slightly.

•Miner: The BTC hash rate increased slightly.

Compliance agency: Grayscale Trust BTC/ETH lock-up volume remains stable this week.

Derivatives market:

•BTC futures open interest rebounded after falling and basis spreads rose slightly. BTC-compliant market futures contracts saw a significant increase in both open interest and volume. BTC perpetual contract funding rates remain positive.

•BTC options open interests continued to rise. BTC long-term and ultra-long-term options IV edged up, while short-term and ultra-short-term options IV rose and then fell. The skew of BTC options is up and positive for all issues.

•ETH contract open interest rebounded after falling and basis fluctuated slightly. ETH perpetual contract funding rates were largely positive.

•ETH options open interests continued to rise. ETH options IV and skew rose across all periods, with little difference between ultra-short-term IV and skew at the beginning and end.

Weekly Market hot spots :