Despite Federal Reserve Chairman Jerome Powell intentionally avoiding the question of a potential rate cut in September during his speech on Tuesday, his emphasis on the two-way risks of adjusting monetary policy did not deter market confidence. Weak economic data from yesterday bolstered expectations of a rate cut, leading to a general decline in U.S. Treasury yields. Consequently, the Dow Jones slightly decreased by 0.06%, while the Nasdaq rose by 0.88% and the S&P 500 increased by 0.5%, both reaching new historical highs.
Source: SignalPlus, Econimic Calendar
In the realm of cryptocurrencies, the temporary positive news on the macroeconomic level has not been able to clear the gloom over Bitcoin prices. According to reports, the German government transferred bitcoins worth $172 million from its wallet to three exchanges: Coinbase, Kraken, and Bitstamp. This action, along with similar moves by the U.S. government (selling off Silk Road proceeds) and the upcoming repayments by Mt. Gox, has brought strong selling pressure to the market.
Today, Bitcoin prices dropped below the crucial psychological support level of $60,000, at one point falling below $57,000 before bouncing back to $58,000. This has caused a high demand for bearish options for 5JUL and 12JUL, driving the implied volatility (IV) curve to rise from recent lows. Meanwhile, bullish options for 26JUL were heavily sold off, indicating a rather pessimistic short-term market sentiment.
Source: Deribit （As of 4 JUL 8: 00 UTC）
Source: SignalPlus
Data Source: Deribit, Overall Distribution of BTC Transactions
Data Source: Deribit, Overall Distribution of ETH Transactions
Source: Deribit Block Trade
Source: Deribit Block Trade
