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Market Insight
Weekly Market Update - 12 May 2025

Crypto Market

 

Crypto

BTC

ETH

Weekly High

$ 104,710

$ 2,582

Weekly Low

$ 93,724

$ 1,763


BTC and ETH Market Insight

 

The Federal Reserve maintained interest rates and continued QT, with Powell adhering to a cautious "wait and see" strategy amid the ongoing tariff war. Following three weeks of strong buying, the ETF's BTC holdings hit a new all-time high. Ethereum's Pectra Upgrade is complete, and ETH/BTC is showing a bullish trend for the first time in years. Since 2021, the pair has been in an 80% downtrend from its peak. Currently, ETH surpasses BTC in global perpetuals trading volume, representing 41% of total.

Upcoming Macro Calendar - Source: Trading Economics

 

 

Options Market

The market continued the upward trend. BTC is 5.3% away from the ATH as of writing and ETH finally pumped and ended the week with a surge of nearly 30% vs 10% for BTC. ETHBTC ratio reclaimed the 0.02 mark for the first time since early April. 27,500 x ETH-27Sep-1800/2400 call spreads were lifted before the pump. ETH gamma exploded on the quick rally - front-ends IV jumped with skew shifting to slightly favour calls. On the other hand, the implied volatility for BTC is quite sticky which can be justified by the suppressing RV.

 

Altcoins and Blockchain News

 

  • According to Farside data, U.S. spot Ethereum ETFs saw a net outflow of $38.2 million last week.

 

  • Optimism announced that it has successfully activated the Isthmus hard fork, bringing key features from Ethereum’s Pectra upgrade into the OP Stack and Superchain.

 

  • EigenLayer is about to introduce a Redistribution mechanism. AVSs (Actively Validated Services) will be able to reutilize slashed funds instead of having them burned, unlocking new possibilities for verifiable services.

 

  • Metis stated that the next phase of Metis L2 evolution will begin on May 14, marked by the launch of the Andromeda upgrade, which is the first stage of the Metis ReGenesis evolution.

 

  • The Frankfurt Prosecutor’s Office announced that the crypto trading platform eXch has been seized by law enforcement, with €34 million and platform infrastructure confiscated.

 

  • Fintech company Superstate launched the “Opening Bell” platform, which supports direct on-chain issuance and trading of SEC-registered stocks. Superstate has recently collaborated with multiple institutions to submit a framework proposal to the SEC.

 

  • On May 8, the UK and the US reached an agreement on the terms of a tariff trade deal. The UK government agreed to make concessions on the import of American food and agricultural products in exchange for the U.S. reducing tariffs on British car exports.

 

Macro

The major benchmarks closed slightly lower for the week: the DJIA lost 0.2%, the S&P 500 lost 0.5%, and the Nasdaq -0.3%. The Chinese stocks advanced after coming back from Labor Day: Shanghai Composite Index added +1.92%, the CSI 300 added +2.0%, while the Hang Seng index added +1.61%.

 

 

Disclaimer

 

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