Weekly Market Analysis (2022/02/20–2022/02/26)

Abstract

Macro environment:

• Biden: U.S.-Russian relations are completely broken, pushing forward “devastating” sanctions against Russia; oil prices into the “$100” era; U.S. stocks ended a turbulent week with two consecutive days of big gains; Fed’s “King of Hawks” Bullard: Fed’s Daley: inflation has spread to multiple sectors, inclined to raise interest rates at least four times.

Spot market:

• Market Overview: The overall market capitalisation of cryptocurrencies stood at US$1.776 trillion, down 0.62% from last week.
• Technical analysis: BTC returned to a downward trend after being stirred up. ETH returned to a downward trend after being stirred up with more pressure.
• Stablecoins and Capital flow: Stablecoins are slightly increased this week. BTC balance in exchanges’ wallets remained stable, ETH balance in exchanges’ wallets rose slightly.
• Miner: The BTC hash rate decreased slightly.
• Compliance agency: AUM of mainstream BTC ETF declined slightly, AUM of ETH ETF declined slightly.

Derivatives market:

• BTC futures open interest decreased this week, with trading volume increased slightly. BTC-compliant market futures contracts remained stable, with volume increased obviously. The BTC perpetual contract funding rate fluctuated around zero.
• BTC options open interests remained unchanged this week. BTC Option IV started to recover this week. The long-short ratio of BTC futures fluctuated slightly, the long-short ratio of options increased, and the market sentiment was stable.
• The open interests of ETH kept stable this week, with trading volume increased. ETH perpetual contract funding rates fluctuated around zero.
• ETH options holdings remained stable this week. The IV of ETH options has rebounded significantly this week.

Weekly Market hot spots :

• ZkSync 2.0 public test network of Ethereum scaling solution is officially launched.

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