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Last Updated:  
January 27, 2025
2 mins

Crypto Markets Daily Jan 27 2025

BTC fell to $97K amidst a wider Trad-Fi decline. Skew levels have now dropped towards OTM puts for short-tenors with funding rate close to 0%. China's DeepSeek LLM is causing concerns about U.S. tech stock valuations. Looking ahead, the Fed and the ECB are meeting through the week amongst a slew of macro data including U.S. GDP and PCE inflation.

Daily Update

  • BTC fell to $97K before paring some of its losses alongside a decline in U.S. stock index futures. BTC & ETH skew levels have dropped across short tenors towards OTM puts. BTC Funding Rate is slightly above 0%.

  • China’s DeepSeek LLM has caused concerns about whether the U.S. can maintain its edge in the AI space. President Trump’s administration has paused its 25% tariff hike against Colombia announced yesterday over immigration concerns. China Manufacturing PMI came in at 49.1 for January, below the 50.1 value in December, marking a shift from expansion to contraction. Non-manufacturing PMI fell to 50.2 from 52.2 in December. 

  • Jupiter DEX has announced a token buyback program funded by using 50% of its fee generation from the protocol. Alongside an announcement of the burning of $3 billion JUP tokens was announced. Jupiter also announced its acquisition of Moonshot, a memecoin generation platform by acquiring a majority stake in the platform.

  • Fineqia International Inc. launched its YADA ETN (The Fineqia FTSE Cardano Enhanced Yield exchange-traded note) on the Vienna Stock Exchange on 24 January. This token allows investors to gain exposure to price movements of the underlying Cardano assets while also collecting a yield.

This Week’s Calendar:

Charts Of The Day:

Figure 1. Block Scholes BTC Senti-Meter Index. Source: Deribit, Block Scholes
Figure 2. Block Scholes ETH Senti-Meter Index. Source: Deribit, Block Scholes
Figure 3. BTC at-the-money implied volatility at selected tenors. Source: Deribit, Block Scholes
Figure 4. BTC 25-delta put-call skew ratio. Source: Deribit, Block Scholes

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