Research Summary
The report by discusses the current state of the crypto market and its potential future trends. The report suggests that the lowest point of the crypto winter likely occurred after the collapse of FTX last year, as indicated by improving crypto prices and a declining share of stablecoins in investors’ on-chain wallets. However, the report also warns of potential price drawdowns in both the equity and crypto markets, as derivative indicators suggest caution and implied volatility is historically low in both markets.
Actionable Insights
- Monitor the crypto market: The report suggests that the improving technicals of crypto prices and the declining share of stablecoins in investors’ wallets indicate a potential recovery from the crypto winter.
- Exercise caution: Despite the improving market conditions, the report warns of potential price drawdowns in both the equity and crypto markets, as derivative indicators suggest caution.
- Keep an eye on central bank meetings: The report highlights upcoming meetings of the US Federal Reserve, the European Central Bank, and the Bank of Japan, suggesting that their actions and stances could have a significant impact on the crypto market.
