Research Summary
The report discusses the return of volatility in the crypto market, driven by unexpected triggers. The report highlights a significant move in the market, a 5 standard deviation 2-day move, which was not anticipated. The report suggests that the trigger for this move was the market’s reaction to Blackrock’s spot ETF application, interpreting it as a sign that the SEC was ready to approve a Bitcoin spot ETF. The report also mentions that the market is currently in the 30-35k resistance zone for Bitcoin, and the authors are hedging their gamma in this area.
Actionable Insights
- Monitor the Market: The report suggests that the market is currently in the 30-35k resistance zone for Bitcoin, and the authors are hedging their gamma in this area. This indicates that the market is at a critical point and should be closely monitored.
- ETF Applications: The market’s reaction to Blackrock’s spot ETF application suggests that the approval of a Bitcoin spot ETF could have significant implications for the market. Therefore, keeping an eye on ETF applications and approvals could provide valuable insights.
- Volatility is Back: The report highlights the return of volatility in the market, which could present both risks and opportunities. Traders and investors should adjust their strategies accordingly.
