Ether Price Dive: What’s Happening?
From November 20 to November 22, Ethereum’s price took a nosedive—an 11.9% plunge, bottoming out at $1,074. This was the worst it’s been since July, leaving investors with a case of the jitters. What’s behind this tectonic shift? Turns out, crypto lending company Genesis is reportedly in hot water, struggling to gather funds, leading to whispers of potential insolvency as of November 21.
Providing a glimmer of hope, a spokesperson for Genesis said, “We have no immediate plans for bankruptcy”. Apparently, they’re still in talks with creditors over their financial funhouse.
DeFi Drama and Privacy Concerns
Sneakily adding to the chaos, Uniswap Labs decided to switch up its privacy policy on November 17, revealing data collection of users’ browser info and blockchain interactions. This has stirred unease about just how decentralized our decentralized finance (DeFi) really is. Is it too much to ask that we keep some secrets in a world that’s all about transparency?
Hacker Hijinks with $447 Million
Just when you thought it couldn’t get any weirder, the infamous hacker from the FTX exchange saga has been spotted! On November 20, they transferred a hefty 50,000 ETH to a different wallet and then exchanged it for Bitcoin. Traders are getting jittery, fearing this hacker might be implementing some crafty tactics to suppress Ether’s price while profiting off leveraged shorts. That’s enough to make anyone shudder!
“SBF is the hacker! Imagine him shorting the market while he dances with our stolen assets!” – Dervish (@kundunsan), Nov 15.
Derivatives Data: A Bearish Outlook
In the realm of derivatives, professional traders have been in a tailspin since November 10. They’re saying, “No thanks!” to quarterly futures, typically favoring them as they offer stability over the ups and downs of perpetual markets. Unfortunately, the futures market is painting a concerning picture. The three-month futures premium is in backwardation, which is as unsettling as it sounds—generally a bearish sign for traders.
Options Markets and the Future of Ether
Taking a peek at Ether’s options markets, we see a similar trend of unease. The 25% delta skew has soared above 10% since November 9, indicating that options traders are feeling quite grumpy, pricing higher odds for a price dump. If we’re discussing doom and gloom, this is how it looks—currently floating at around 23%.
But fear not, weary investors! Just as these metrics paint a dismal outlook, they often lag behind. Panic following FTX’s collapse and Genesis’s liquidity drama may not last long. If Genesis proves it’s still afloat and institutional investors begin gravitating back toward Bitcoin during dips, we might just see the light at the end of the tunnel.
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