BTC Options IVs for all major terms instead declined slightly
Bitcoin turned on a 10,000-USD plunge after a successful run at new all-time highs, at one point dropping below $60,000.
Derivatives data, represented by futures basis spreads, went off across the board, with a flash crash at the peak of bullish Fomo sentiment.
On the options, against the backdrop of the 10,000-USD plunge, options IVs for all major terms instead declined slightly, which is markedly different from previous markets.
As we have mentioned several times in this bull market, many spot holders purchased puts as insurance, and now that the insurance is being honored, it is time to sell stops to hedge against spot downside risk.
Derivatives data, represented by futures basis spreads, went off across the board, with a flash crash at the peak of bullish Fomo sentiment.
On the options, against the backdrop of the 10,000-USD plunge, options IVs for all major terms instead declined slightly, which is markedly different from previous markets.
As we have mentioned several times in this bull market, many spot holders purchased puts as insurance, and now that the insurance is being honored, it is time to sell stops to hedge against spot downside risk.