Nansen, a crypto analytics company, has publishedreportthat identifies patterns in the traditional crypto derivatives and spot markets. By analyzing what it means for the current market environment. by short term They are trying to answer the question of whether the crypto bear market is coming to an end.
In which Nansen summarized three key points:
US dollar The USD has started to lose strength against other major currencies such as the JPY and CNY, Nansen argues that one of the drivers may be the pricing of the Fed’s highest interest rates in the future bond markets.
Calls vs. Puts on BTC and ETH – Information Nansen examined covers the period between January 2021 and November 2022, assuming future developments in the derivatives market.
It noted that the CPIV indicator generates more risk-on and risk-off signals more often compared to stablecoin indicators, while the stablecoin indicator returned to risk-on in May 2022, while the CPIV indicator was risk-off as of Day 20. November 2022
Crypto Risk Premium – in the last part of the report Analysts have conceptualized and calculated a risk premium for crypto called Crypto Risk Premium, or CRP, linked to the underlying value of crypto assets held by investors, and Nansen also used Deribit’s historical options data based on: Intraday quotes and bid and ask prices in BTC, ETH and SOL.
Analysts note that the crypto derivatives market is still new and not as well studied as the equity market. This means it’s important to keep an open mind when analyzing CRP estimates.
“It is possible for crypto prices to find further downside in this cycle. before financial conditions are favorable for both equities and crypto assets,” the analyst concluded.
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