Selling Flow
Crypto Market Week in Review (21 April 2023)
Markets
This week the markets were very calm. Both stocks and bonds were flat since the last Friday. The worse-than-expected UK inflation data shortly weighed on the markets, but both stocks and bonds quickly recovered after an initial drop. The quarterly reporting season started last Friday with reports of major US banks, which were mostly positive.
The most interesting news of the week was the quarterly report published by Tesla. The company continued slashing car prices in order to maintain its market share. The much lower operating margin weighed on shares, which fell by 10% on Thursday and decisively broke through the March low.
Tesla stock price (USD)
Both Bitcoin and Ethereum fell about 7% since the last Friday’s close. Crypto correction started on Wednesday when Bitcoin dropped by about $1000 on the news of the UK inflation being worse than expected. That was a broad macro move, but Bitcoin felt it much more than traditional financial assets, which largely recovered on the same day. CoinDesk pointed to the huge selling flow on Wednesday, citing estimates that 16,000 Bitcoins were sold on Binance and comparable sizes on other major exchanges.
The implied volatility remains subdued, as the DVOL indexes were stable during the week both for Bitcoin and Ethereum. The volatility curves turned into a normal upward slope both for Bitcoin and Ethereum. Ethereum implied volatility continued hovering near recent lows.
Ethereum DVOL index
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