📉 Bitcoin ETF Impact: Traders React with Deleveraging Moves! 📉📣
The recent rollercoaster ride in Bitcoin's price, triggered by false SEC news on ETF approval, has exposed the diminishing influence of ETFs on BTC. Authored by Bhushan Akolkar, let's dissect the market dynamics and the intriguing aftermath of this unexpected event.
🚨 SEC’s False News Triggers BTC Volatility!
The fabricated news orchestrated by the SEC sent shockwaves through the Bitcoin market, leading to strong price volatility. 🌊 Initially soaring to $48,000, Bitcoin quickly settled back to $46,000. The unexpected twist caused a spike in Realized Volatility (RV), but surprisingly, Implied Volatility (IV) experienced a slight decrease.
💡 Insights from Greeks.Live: Active ETF trading and short-term IV highs contribute to an unusual market response.
🔄 Deleverage Operations and “Sell the News” Strategy!
The dual impact of the SEC's false news became evident. Investors recognized the limited influence of ETFs on BTC and, concurrently, witnessed a drain in market momentum.
📊 Mixed Signals in the BTC Market!
While speculation fueled FOMO sentiment, pushing Bitcoin to $47,000, the options market tells a mixed story. Short-term Implied Volatilities (IVs) dropped significantly, especially the current At-The-Money (ATM) option IV for June 11, witnessing a 30% decrease in a few hours. Notable declines appeared across various terms in the options market.
🔄 Block Trades and Institutional Moves: A Game of Contrasts!
Despite the surge to new highs, block trades remained relatively muted. The dominance of selling calls and buying puts during the breakout raises questions about institutional sentiment. As institutional investors short the ETF market at its peak, uncertainty clouds the future trajectory of Bitcoin.
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