Yesterday (6 MAY), the three major US stock indexes collectively closed higher on the back of warming risk sentiment, and the 10-year Treasury yield fell below the 4.5% mark. According to Jinshi, Richmond Fed Chairman Barkin believes that the full impact of the rate hike has not yet fully emerged, and believes that the current restrictive interest rate level is sufficient to curb demand; in addition, the Fed's latest bank loan survey shows that more banks tightened their lending standards in the first quarter.

Source: Investing

In terms of digital currency, Grayscale GBTC ETF has achieved positive capital inflows for two consecutive days, with total daily increases of 378 $M and 217 $M respectively, of which FBTC contributed most of the flow. From the perspective of currency price, BTC briefly broke through $65,000 after yesterday's option settlement. When the RSI index just showed an overbought signal, it pulled back to 63,000, and after today's settlement, it broke through $64,000 again.

Source: Farside Investors；TradingView

In terms of options, the implied volatility level has fallen sharply after the price has pulled back from its highs. The front-end IV of BTC/ETH has fallen by about 5%. Judging from the ATM curve, BTC's Tenor curve has steepened, while ETH has maintained a local high on 24 MAY 24. In this regard, we must once again remind ourselves of the uncertainty risks that may be brought about by the US SEC's decisions on VanEck ETH Spot ETF and Grayscale ETH Futures on May 23 and May 30.

Source: Deribit (as of 7 MAY 16: 00 UTC+ 8)

Source: SignalPlus

In terms of trading, ETH transactions are concentrated in the selling of front-end bullish strategies. The most representative one is the Sell 3250 vs Buy 3400 bullish spread strategy formed on 17 MAY, with a cumulative trading volume approaching 12,000 contracts/per contract. In terms of BTC, the largest transaction is the calendar bullish spread strategy of buying 26 JU L2 4–85000-C (500 BTC) and selling 28 MAR 25–200000-C (500 BTC). Since the strike price of the selling leg is far away, the overall cost is only about 1.45 BTC.

Data Source: Deribit, ETH overall transaction distribution, 17 MAY Sell 3250–3400 Call Spread

Data Source: Deribit, BTC transaction overall distribution

Source: Deribit Block Trade

Source: Deribit Block Trade