Weekly Market Analysis (2021/12/18–2021/12/25)

Abstract

Macro environment:

•US PCE data hit a new high since 1989; US stocks rose across the board on Thursday; markets are betting on a 100 basis point rate hike by the Bank of England in 2022.

Spot market:

• Market Overview: The overall market capitalisation of cryptocurrencies stood at US$2.384 trillion, up 6.4% from last week.
• Technical analysis: BTC continues to rebound and shows signs of recovery. ETH oscillated to the upside and broke out of the descending parallel channel.
• Stablecoin and Capital flow: USDT issued significantly this week. USDT premium is negative. BTC balance in exchanges’ wallets outflowed significantly, ETH balance in exchanges’ wallets remained stable.
• Miner: The BTC hash rate increased significantly.
• Compliance agency: Grayscale Trust BTC/ETH lock-up volume remains stable this week.

Derivatives market:

• The BTC futures open interest increased slightly this week, with basis having a slight increase. BTC-compliant market futures contracts kept stable this week, and trading volume maintained at a low level. BTC perpetual contract funding rates fluctuated slightly below zero.
• BTC options open interests greatly increased this week. BTC options IV quickly dropped, reaching the lowest point in a month. BTC options skew moves up with a strong trend.
• The open interests of ETH futures increased slightly, with basis kept steady this week. ETH perpetual contract funding rates fluctuated below zero. The volatility is further reduced.
• ETH options open interests increased sharply this week. ETH options IV had a decline in all periods this week, with skew in each period staggered and rose in overall.

Weekly Market hot spots :

• NFT Games DOGAMÍ closes $6 million Pre-Seed round with participation from Ubisoft and Animoca Brands.

Macro Environment

BTC and ETH Spot Market Analysis

Analysis of Derivatives Market

Market Hotspots

About us

Huobi Blockchain Application Research Institute (referred to as “Huobi Research Institute”) was established in April 2016. Since March 2018, it has been committed to comprehensively expanding the research and exploration of various fields of blockchain. As the research object, the research goal is to accelerate the research and development of blockchain technology, promote the application of blockchain industry, and promote the ecological optimization of the blockchain industry. The main research content includes industry trends, technology paths, application innovations in the blockchain field, Model exploration, etc. Based on the principles of public welfare, rigor and innovation, Huobi Research Institute will carry out extensive and in-depth cooperation with governments, enterprises, universities and other institutions through various forms to build a research platform covering the complete industrial chain of the blockchain. Industry professionals provide a solid theoretical basis and trend judgments to promote the healthy and sustainable development of the entire blockchain industry.

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