Turkey Week

Crypto Market Week in Review (25 November 2022)

Markets

This week the markets were in a holiday mood as Thanksgiving shortened US trading. Both stocks and bonds were up. The only notable news was a publication of the FOMC minutes (the protocol of the latest Federal Reserve monetary policy meeting), and it showed no surprises.

Ironically, the central bank of Turkey published its monetary policy decision exactly on Thanksgiving Day. The bank confirmed its reputation as the most unconventional central bank in the world, cutting rates from 10.5% to 9% despite inflation increasing from 83.5% in September to 85.5% in October.

Oil continued to decline and fell to the bottom of this year’s range since January, losing about 30% since the June high. There was an unconfirmed rumor of an OPEC+ production increase in December. Given oil’s correlation with inflation expectations, the next OPEC+ production decision may be particularly relevant for the markets currently obsessed with inflation.

Brent oil price

Cryptocurrencies were slightly down for the week. Bitcoin lost 1.6% since last Friday. Ethereum modestly underperformed and altcoins were mixed. A star of the week was Litecoin, which rallied by 23%.

The crypto volatility market was in a holiday mood too with little changes since the last Friday. Implied volatility of both Bitcoin and Ethereum remained at about the same level, and the volatility curves remained flat.

Bitcoin DVOL index

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