🚨 Market Sell-off Update 🚨
1/. Bitcoin finally caught up with Wall Street crashing 39% yesterday during one of the most memorable and hectic trading session in its young history
1/. Bitcoin finally caught up with Wall Street crashing 39% yesterday during one of the most memorable and hectic trading session in its young history
2/. Nearly $50bln bitcoin futures were traded across crypto exchanges with two exchanges - OKEx & BitMEX - > $10bln and eight > $1bln
3/. Total open interest - the number of outstanding futures positions opened at the close - collapsed nearly 50% to $2bln
4/. All futures curve have turned in backwardation which could soften the structural demand for fiat/stable coin borrowing as the popular cash and carry trade has now reversed
5/. BitMEX had the most liquidations of XBTUSD contracts since we started tracking the exchange in 2018
> $1bln sell orders taking into account today's action
> $1bln sell orders taking into account today's action
6/. The open interest for XBTUSD collapsed nearly 50% in line with the market and remains near the lows
7/. Given the extreme selling pressure, XBTUSD started to decouple yesterday and trade at a discount to spot.
Perpetual swap contracts - the most liquid crypto derivatives instruments - do not expire. Only the 8h funding mechanism act as a rebalancing force to the spot price.
Perpetual swap contracts - the most liquid crypto derivatives instruments - do not expire. Only the 8h funding mechanism act as a rebalancing force to the spot price.
8/. The basis - the difference between XBTUSD and spot in % - collapsed to -10%+.
Usually this metric used to measure how well XBTUSD tracks the spot market is measured in basis points!
Usually this metric used to measure how well XBTUSD tracks the spot market is measured in basis points!
9/. Funding - the % amount exchanged between longs and shorts every 8 hours - collapsed to unprecedented negative territories to incentivize shorts to unwind and rebalance the swaps closer to spot
10/. Liquidity worsened significantly with the bid/offer spread to trade 5mln across the most liquid exchanges spiking to a couple of %
11/. In options land, implied volatility spiked 50 points on heavy trading volumes reflecting the increased volatility in the market.
Yesterday's move was a 10 standard deviations event vs what was priced in - normal distribution modelling would tell you this cannot happen!
Yesterday's move was a 10 standard deviations event vs what was priced in - normal distribution modelling would tell you this cannot happen!
12/. The options complex had another record breaking day with nearly $300mln notional trading and continues to grow structurally
13/. Large fiat on ramp were also very active with BTCUSD pair at Coinbase and LMAX Digital trading > $1bn combined
14/. Flight to safety "a la crypto": USDT - the controversial $ backed cryptocurrency - buys you more bitcoin than real USD temporarily!
15/. Finally, the jury has spoken for the time being on the risk on / risk off debate with bitcoin following and catching up the path of stocks
Year-To-Date:
Dollar, Treasuries and Gold 📈
Stocks, Bitcoin & Oil 📉
Year-To-Date:
Dollar, Treasuries and Gold 📈
Stocks, Bitcoin & Oil 📉
16/. skew.com had a record day yesterday and is ready to assist you navigating in real-time the unprecedented volatility in the markets!
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