Digital Assets

Hubbis and Independent Reserve bring you this week's Crypto News and Market Trends - Cryptocurrency Surge, Oil Price Shifts, and Evolving Asset Dynamics

The cryptocurrency market remains buoyant, with some profit-taking in top-performing tokens. Bitcoin alone has surged over 26%. This strong performance and supportive news have led the market to seek value more confidently, a typical trend in well-performing asset classes.

Geopolitical concerns in the Middle East have eased recently, reflected in the declining price of WTI crude oil from $85 to $77.60 in the past week. This reduced concern in oil disruption has positively impacted risk assets and lowered inflation expectations, evidenced by the reduction in the U.S. 10-year treasury note yield from its peak of 4.99% to 4.41%.

Previously, cryptocurrency movements were independent of U.S. tech equities and overall global risk asset sentiment, but this has recently shifted, with risk assets now benefiting from lower fixed-income yields. The market is closely monitoring the ETH/BTC ratio, especially after Fidelity filed for a spot ETH ETF. The ratio, currently at 0.054, is stable within a short-term range of 0.052-0.058. The usual pattern of cryptocurrency market phases—starting with BTC appreciation, followed by ETH, and then Altcoins—is currently transitioning between ETH and Alt outperformance, albeit with less momentum than seen in past rallies.

The economic calendar for this week is relatively light. The release of the US Federal Open Market Committee meeting minutes for November is scheduled for early Wednesday morning.

On the OTC desk, last week's trading activity was predominantly from the buy-side, accounting for about 75% of transactions. This week, the buy-to-sell flow ratio is more balanced, with market participants taking profits in high-performing coins like SOL, AVAX, and BTC, mostly converting back to fiat but also diversifying into higher-risk tokens in anticipation of 'Alt season'.

Read this week's full market update here.