CRYPTO MOVERS AND PRICES
CRYPTO STORY OF THE DAY
Yesterday Afternoon An Aggressive Sell-Off Took Place Lead By Altcoins - While Media Pointed To Recent Events As Catalysts, We Believe Mid-Term Fundamentals Have Continued To Imply Market Vulnerability
Most alt-coins fell well over 20% with even BTC falling USD 1,000 in 30-minutes. Market dislocations picked up with exchange spreads widening, BitMEX XBT perpetual interest rates spiking to the 100s of percent annualized range and USDt briefly traded above 1.02. Media put the majority of the blame on a relatively muted Bakkt futures launch. Since inception on Monday, the Bakkt monthly future has traded just over 200 BTC equivalent.
Crypto traders, anecdotally, tend to be more reactive to headlines than in other asset classes. As a result, there may have been some buying crypto ahead of the Bakkt launch and then backing away when the products did not attract an influx of participants. That said, we've been pointing out that underlying market mid-term fundamentals have left crypto vulnerable and see those factors as more significant contributors to yesterday's decline. The item we've pointed to most frequently is exchange stress, with nearly every major venue undergoing some kind of plight recently.