The U.S. stock and bond markets were closed yesterday due to Memorial Day. However, later this week, important data (GDP and the Fed’s preferred PCE inflation data) will be released, making it a “short but busy week.”

Source: SignalPlus, Economic Calendar

In the realm of digital currencies, Bitcoin, after trading sideways for nearly a week, broke through the $70,000 mark again during the U.S. trading session yesterday. The market’s bullish enthusiasm appears to have finally been swayed by the continuous inflows into ETFs. Considering the U.S. stock market was closed due to the holiday, analysis platform Santiment characterized this surge as an encouraging sign, as it demonstrates that BTC can perform well even when its correlation with the price movements of traditional finance (TradFi) is not as tight.

Source: TradingView；Farside Investors

But the situation did not unfold smoothly. Just after BTC broke the $70,000 mark, news emerged that Mt. Gox’s cold wallet transferred 12.24 kBTC, worth approximately $840 million, to an unmarked address. In 2014, creditors of Mt. Gox were severely impacted when the exchange went bankrupt, and the exchange has been working for the past decade to recover funds for repayment. Today’s transfer on the BTC chain was viewed by some traders as a potential catalyst for selling pressure and bearish sentiment. Consequently, the price of BTC quickly plummeted from its intraday peak to below $68,000.

Source：Twitter

In the realm of options, market focus has once again shifted to BTC. The roller-coaster trading in the past 24 hours and concerns about potential selling pressure have raised implied volatility. The implied volatility curve has generally flattened and risen, and the volatility skew has quickly tilted towards put options following the price drop. In terms of trading activity, the largest BTC trade was a June set of Short Risky (450 BTC per leg), selling a 75000-Call while buying a 65000-Put for protection, with a net premium of approximately 2 BTC.

Source: Deribit （As of 28 MAY 8:00 UTC）

Source: SignalPlus

Source: SignalPlus

Data Source: Deribit, Overall Distribution of ETH Transactions

Data Source: Deribit, Overall Distribution of BTC Transactions

Source: Deribit Block Trade

Source: Deribit Block Trade