SignalPlus Volatility Column (20240509): BTC Continues to Retrace Gains
In terms of coin prices, BTC performed poorly this week, giving back most of the gains brought by macro positive factors since last Friday. In the options market, implied volatility has been slightly fluctuating around recent lows, with the front-end curve relatively flat, and ETH still has a higher Vol Premium compared to BTC.
A court document shows that due to the recent rise in the value of cryptocurrencies such as BTC and SOL, almost all customers of the bankrupt cryptocurrency exchange FTX will be able to recover their funds, and even more. Specifically, the company currently has assets ranging from $14.5 billion to $16.3 billion to repay approximately $11.2 billion in debts to creditors. However, some investors have expressed a pessimistic attitude towards the recent upward price movement due to the potential risk of asset sell-offs.
On the other hand, according to a report by Bloomberg, the world's largest cryptocurrency asset management company Grayscale announced the withdrawal of its Ethereum futures application submitted to the U.S. SEC, but it did not disclose the reason for the withdrawal, leading to widespread speculation.
Source: TradingView
In terms of price, BTC performed poorly this week, giving back most of the gains brought by macro-positive factors since last Friday. In the options market, implied volatility has slightly fluctuated around recent lows, with the front-end curve relatively flat, and ETH still has a higher Vol Premium compared to BTC. From a trading perspective, the ETH 31 MAY Sell 3700 Buy 3800 call spread strategy became the focus of the past day, while the selling pressure on BTC bullish strategies was also strong, accompanied by significant protective put option buying across various maturities, leading to a substantial decline in Vol Skew.
Source: Deribit (as of 9 MAY 16:00 UTC+8)
Source: SignalPlus
Source: SignalPlus
Data Source: Deribit, overall distribution of ETH trades, 31 MAY Sell 3700 Buy 3800 Call Spread
Data Source: Deribit, overall distribution of BTC trades
Source: Deribit Block Trade
Source: Deribit Block Trade
