Oil Rally

​​Crypto Market Week in Review (07 April 2023)

Markets

In the holiday-shortened week, the markets turned into a slight risk-off mode, reacting to the weak US macro data. Stocks stopped rising, but bond prices advanced. The 10-year US Treasury yield fell to the lowest level since September 2022. Unusually, the important US labor market data will be published on April 7 this week, when most markets will be closed in observation of Good Friday. That could lead to relatively muted market moves during the week.

The largest weekly move was recorded by oil, which added about 6%. OPEC+ surprisingly announced a production decrease, voluntarily joining a sanction-related cut by Russia. Oil advanced above the 100-day moving average on the news, but so far remained in the range held since November 2022.

Brent oil price (blue) and 100-day moving average (orange)

Major cryptocurrencies were mixed. Bitcoin declined by 1.5% since the last Friday, but Ethereum rose by about 3% likely because of the approaching upgrade. XRP lost 6%. Dogecoin rallied by 16% on the news of Twitter using its logo.

The implied volatility of Bitcoin slightly declined and Ethereum’s IV remained flat (as measured by DVOL indexes). Bitcoin option open interest fell off a cliff after the March 31 expiration, as holders of maturing options did not roll their exposure.

Bitcoin Option Open Interest

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