SignalPlus Volatility Column (20240822): BTC falls below $60,000
In the past day, the price of Bitcoin has fallen rapidly, falling below $59,000 at one point, causing more than $100 million in long liquidations. The realized volatility of 70%+ during the day and the price run destroyed liquidity, significantly pushing up the pricing of short-term options, but the back-end implied volatility remained relatively stable, causing the overall term structure to flatten significantly. Analysis pointed out that possible reasons for this phenomenon include the upcoming payment of $1 billion to Mt.Gox creditors and Celsius recent repayment of $2.53 billion in debt to users.
Source: Deribit (as of 28 AUG 16: 00 UTC+ 8)
Source: SignalPlus, ATM Vol.
From another perspective, the violent price fluctuations have caused the Vol Premium at the tail to rise again, and the Fly indicators of BTC and ETH have rebounded significantly. However, their performances are not consistent in terms of Vol Skew. The most prominent one is the sharp drop in the RR of the ETH front end. From the perspective of Flow, this is mainly driven by the demand for put options. Perhaps some recent transfer operations of the Ethereum Foundation are still affecting the markets risk aversion sentiment; the RR of the far end of BTC has risen slightly in this wave of decline, and some topside bullish strategy transactions can also be observed on Flow.
Source: SignalPlus, Fly
Source: SignalPlus, RR
Data Source: SignalPlus, Deribit BTC ETH transaction distribution
You can use the SignalPlus trading vane function at t.signalplus.com to get more real-time crypto information. If you want to receive our updates immediately, please follow our Twitter account @SignalPlusCN, or join our WeChat group (add assistant WeChat: SignalPlus 123), Telegram group and Discord community to communicate and interact with more friends.
SignalPlus Official Website: https://www.signalplus.com
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
El Salvador Announces New Bitcoin Step Despite IMF Warning
Bitcoin country El Salvador has taken a new step for BTC despite the stern warning and new agreement from the IMF.
Tether (USDT) Shares Its Profit Generated in 2024
Tether (USDT), the world's largest stablecoin issuer, shared the amount of profit it made in 2024.
New Proposal from Bitcoin Hater Peter Schiff: “Let’s Create a New Altcoin Reserves Instead of BTC Reserves”
Peter Schiff, known for his intense criticism of cryptocurrencies, opposed the strategic Bitcoin reserve proposal.
Institutions to Shift Toward Altcoins by 2025, Says Bitwise CIO