Yesterday (17APR), due to strong demand for issuance, US Treasury yields collectively saw a slight pullback from their highs. The ten-year yield returned below 4.6%, closing at 4.575%. The two-year yield, sensitive to interest rate policy, stood at 4.924%, and risk sentiment cooled off. In the stock market, optimism remained subdued. All three major indices declined, with the S&P 500 experiencing its fourth consecutive day of losses. Market sentiment has dramatically shifted over the past two weeks, also putting pressure on cryptocurrency.
In the realm of digital currencies, ETFs saw net outflows for the fourth consecutive day. Apart from ongoing selling pressure from grayscale, Cathie Wood’s ARKB, the third-largest Bitcoin spot ETF in the market, also witnessed outflows. Some analysts view these outflows as a sign of product maturity, suggesting that users may be seeking to reduce risk exposure during BTC’s volatile cycles or simply closing out profits.
Moreover, Google Trends data indicates a surge in searches for “Bitcoin halving” to 45, with an expected increase to 100 in the near future (indicating peak popularity for the term).
From a price perspective, it was another tough night for bulls. BTC broke below the critical $62,000 technical support level, with the market hoping for support around $59,000. However, the number of liquidated contracts last night was significantly reduced compared to before, and the high leverage concentrated on BTC has been substantially reduced, reflecting a relatively healthier market condition.
In options, ETH’s IV levels slightly increased overall, with significant net inflows observed in Long Puts for 19APR/31MAY trades. For BTC, short-term IV saw a slight uptick amidst yesterday’s volatility and the looming halving event. Notable market attention was drawn to a large 1875 BTC*2 calendar Call Spread (buying at 80,000 for May, selling at 90,000 for September), reflecting expectations for the market direction post-halving.
Data Source: Deribit, ETH trading distribution, significant net inflows observed in Long Puts for 19APR and 31MAY.
