Volatility Weekly
Volatility Update, 6/12/23
BitOoda Crypto Market Report 6/12/23
Michael Tauckus
Last week brought a number of significant regulatory developments, spurred by the SEC’s charges against Binance and Coinbase that included identifying more than a dozen tokens as alleged securities. In response to these announcements, Crypto.com halted its trading platform for US clients and Robinhood announced it will end support for Cardano, Polygon and Matic.
These actions appear to be the catalysts behind a significant move lower in many of the altcoins named by the SEC, some dropping as much as 25% in a 15-minute span early Saturday morning. Low liquidity conditions most likely contributed to the exaggerated selloff, which wiped out over $35 billion in market cap. Moves like this only reinforce the importance of hedging at a time of uncertainty.
This week is packed with potential market movers: CPI Inflation: Tuesday, PPI Inflation, FED meeting: Wednesday, Retail Sales Data, Initial Jobless Claims: Thursday. Eyes will also be on the SEC’s response to Coinbase’s rulemaking request, as well as a court hearing on the request to freeze the assets of Binance US. This could prove to be one of the more volatile weeks of 2023.
As noted in our volatility report from last Thursday, implied volatility is at or near all time lows. We have been recommending long gamma, volatility positions in the options markets. Implied vol in BTC & ETH is up from Friday between 1-3%, but still by no means expensive. Hedging at these levels and owning volatility has never been a more responsible, prudent strategy to protect profits and ensure the ability to focus on core business activities and profitability.
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Last week brought a number of significant regulatory developments, spurred by the SEC’s charges against Binance and Coinbase that included identifying more than a dozen tokens as alleged securities. In response to these announcements, Crypto.com halted its trading platform for US clients and Robinhood announced it will end support for Cardano, Polygon and Matic.
These actions appear to be the catalysts behind a significant move lower in many of the altcoins named by the SEC, some dropping as much as 25% in a 15-minute span early Saturday morning. Low liquidity conditions most likely contributed to the exaggerated selloff, which wiped out over $35 billion in market cap. Moves like this only reinforce the importance of hedging at a time of uncertainty.
This week is packed with potential market movers: CPI Inflation: Tuesday, PPI Inflation, FED meeting: Wednesday, Retail Sales Data, Initial Jobless Claims: Thursday. Eyes will also be on the SEC’s response to Coinbase’s rulemaking request, as well as a court hearing on the request to freeze the assets of Binance US. This could prove to be one of the more volatile weeks of 2023.
As noted in our volatility report from last Thursday, implied volatility is at or near all time lows. We have been recommending long gamma, volatility positions in the options markets. Implied vol in BTC & ETH is up from Friday between 1-3%, but still by no means expensive. Hedging at these levels and owning volatility has never been a more responsible, prudent strategy to protect profits and ensure the ability to focus on core business activities and profitability.
Crypto prices stabilize after plunging on SEC crackdown jitters (Link)
SOL, ADA, MATIC Tokens Slide 20% in Sudden Move Days After SEC Lawsuit Allegations (Link)
Crypto.com to suspend US institutional exchange (Link)
Robinhood Ends Support for All Tokens Named in SEC Lawsuit as Securities (Link)
Coinbase invited to set up shop in Hong Kong after SEC lawsuit (Link)
SEC’s Crypto Campaign Unlikely To Stop At Binance And Coinbase (Link)
SEC’s Regulatory Net Now Covers $120 Billion of Crypto After Coinbase, Binance Actions (Link)
Analysis: US SEC crackdown on Coinbase, Binance puts crypto exchanges on notice (Link)
Gensler: Crypto firms know exactly how to register, they just don’t want to (Link)
UK Regulator’s New Crypto Rules Include ‘Cooling-off Period’ for Investors (Link)
CFTC Approves Cboe Clear Digital, LLC to Clear Margined Digital Asset Futures (Link)
Purpose
This research is only for the clients of BitOoda. This research is not intended to constitute an offer, solicitation, or invitation for any securities and may not be distributed into jurisdictions where it is unlawful to do so. For additional disclosures and information, please contact a BitOoda representative at info@bitooda.io.
Analyst Certification
Michael Tauckus, the author of this report hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships.
Conflicts of Interest
This research contains the views, opinions, and recommendations of BitOoda. This report is intended for research and educational purposes only. We are not compensated in any way based upon any specific view or recommendation.
General Disclosures
Any information (“Information”)provided by BitOoda Holdings, Inc., BitOoda Advisory LLC, BitOoda Digital, LLC, BitOoda Technologies, LLC or Ooda Commodities, LLC and its affiliated or related companies (collectively, “BitOoda”), either in this publication or document, in any other communication, or on or throughhttp://www.bitooda.io/,including any information regarding proposed transactions or trading strategies, is for informational purposes only and is provided without charge. BitOoda is not and does not act as a fiduciary or adviser, or in any similar capacity, in providing the Information, and the Information may not be relied upon as investment, financial, legal, tax, regulatory, or any other type of advice. The Information is being distributed as part of BitOoda’s sales and marketing efforts as an introducing broker and is incidental to its business as such. BitOoda seeks to earn execution fees when its clients execute transactions using its brokerage services. BitOoda makes no representations or warranties(express or implied) regarding, nor shall it have any responsibility or liability for the accuracy, adequacy, timeliness or completeness of, the Information, and no representation is made or is to be implied that the Information will remain unchanged. BitOoda undertakes no duty to amend, correct, update, or otherwise supplement the Information.
The Information has not been prepared or tailored to address, and may not be suitable or appropriate for the particular financial needs, circumstances or requirements of any person, and it should not be the basis for making any investment or transaction decision. The Information is not a recommendation to engage in any transaction. The digital asset industry is subject to a range of inherent risks, including but not limited to: price volatility, limited liquidity, limited and incomplete information regarding certain instruments, products, or digital assets, and a still emerging and evolving regulatory environment. The past performance of any instruments, products or digital assets addressed in the Information is not a guide to future performance, nor is it a reliable indicator of future results or performance.
Ooda Commodities, LLC is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets.
BitOoda Technologies, LLC is a member of FINRA.
“BitOoda”, “BitOoda Difficulty”,“BitOoda Hash”, “BitOoda Compute”, and the BitOoda logo are trademarks of BitOoda Holdings, Inc.
Copyright 2023 BitOoda Holdings,Inc. All rights reserved. No part of this material may be reprinted, redistributed, or sold without prior written consent of BitOoda.
Last week brought a number of significant regulatory developments, spurred by the SEC’s charges against Binance and Coinbase that included identifying more than a dozen tokens as alleged securities. In response to these announcements, Crypto.com halted its trading platform for US clients and Robinhood announced it will end support for Cardano, Polygon and Matic.
These actions appear to be the catalysts behind a significant move lower in many of the altcoins named by the SEC, some dropping as much as 25% in a 15-minute span early Saturday morning. Low liquidity conditions most likely contributed to the exaggerated selloff, which wiped out over $35 billion in market cap. Moves like this only reinforce the importance of hedging at a time of uncertainty.
This week is packed with potential market movers: CPI Inflation: Tuesday, PPI Inflation, FED meeting: Wednesday, Retail Sales Data, Initial Jobless Claims: Thursday. Eyes will also be on the SEC’s response to Coinbase’s rulemaking request, as well as a court hearing on the request to freeze the assets of Binance US. This could prove to be one of the more volatile weeks of 2023.
As noted in our volatility report from last Thursday, implied volatility is at or near all time lows. We have been recommending long gamma, volatility positions in the options markets. Implied vol in BTC & ETH is up from Friday between 1-3%, but still by no means expensive. Hedging at these levels and owning volatility has never been a more responsible, prudent strategy to protect profits and ensure the ability to focus on core business activities and profitability.
Crypto prices stabilize after plunging on SEC crackdown jitters (Link)
SOL, ADA, MATIC Tokens Slide 20% in Sudden Move Days After SEC Lawsuit Allegations (Link)
Crypto.com to suspend US institutional exchange (Link)
Robinhood Ends Support for All Tokens Named in SEC Lawsuit as Securities (Link)
Coinbase invited to set up shop in Hong Kong after SEC lawsuit (Link)
SEC’s Crypto Campaign Unlikely To Stop At Binance And Coinbase (Link)
SEC’s Regulatory Net Now Covers $120 Billion of Crypto After Coinbase, Binance Actions (Link)
Analysis: US SEC crackdown on Coinbase, Binance puts crypto exchanges on notice (Link)
Gensler: Crypto firms know exactly how to register, they just don’t want to (Link)
UK Regulator’s New Crypto Rules Include ‘Cooling-off Period’ for Investors (Link)
CFTC Approves Cboe Clear Digital, LLC to Clear Margined Digital Asset Futures (Link)
Purpose
This research is only for the clients of BitOoda. This research is not intended to constitute an offer, solicitation, or invitation for any securities and may not be distributed into jurisdictions where it is unlawful to do so. For additional disclosures and information, please contact a BitOoda representative at info@bitooda.io.
Analyst Certification
Michael Tauckus, the author of this report hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships.
Conflicts of Interest
This research contains the views, opinions, and recommendations of BitOoda. This report is intended for research and educational purposes only. We are not compensated in any way based upon any specific view or recommendation.
General Disclosures
Any information (“Information”)provided by BitOoda Holdings, Inc., BitOoda Advisory LLC, BitOoda Digital, LLC, BitOoda Technologies, LLC or Ooda Commodities, LLC and its affiliated or related companies (collectively, “BitOoda”), either in this publication or document, in any other communication, or on or throughhttp://www.bitooda.io/,including any information regarding proposed transactions or trading strategies, is for informational purposes only and is provided without charge. BitOoda is not and does not act as a fiduciary or adviser, or in any similar capacity, in providing the Information, and the Information may not be relied upon as investment, financial, legal, tax, regulatory, or any other type of advice. The Information is being distributed as part of BitOoda’s sales and marketing efforts as an introducing broker and is incidental to its business as such. BitOoda seeks to earn execution fees when its clients execute transactions using its brokerage services. BitOoda makes no representations or warranties(express or implied) regarding, nor shall it have any responsibility or liability for the accuracy, adequacy, timeliness or completeness of, the Information, and no representation is made or is to be implied that the Information will remain unchanged. BitOoda undertakes no duty to amend, correct, update, or otherwise supplement the Information.
The Information has not been prepared or tailored to address, and may not be suitable or appropriate for the particular financial needs, circumstances or requirements of any person, and it should not be the basis for making any investment or transaction decision. The Information is not a recommendation to engage in any transaction. The digital asset industry is subject to a range of inherent risks, including but not limited to: price volatility, limited liquidity, limited and incomplete information regarding certain instruments, products, or digital assets, and a still emerging and evolving regulatory environment. The past performance of any instruments, products or digital assets addressed in the Information is not a guide to future performance, nor is it a reliable indicator of future results or performance.
Ooda Commodities, LLC is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets.
BitOoda Technologies, LLC is a member of FINRA.
“BitOoda”, “BitOoda Difficulty”,“BitOoda Hash”, “BitOoda Compute”, and the BitOoda logo are trademarks of BitOoda Holdings, Inc.
Copyright 2023 BitOoda Holdings,Inc. All rights reserved. No part of this material may be reprinted, redistributed, or sold without prior written consent of BitOoda.
Markets are higher again today with Bitcoin leading the charge, up 2.7% to $45,385 while ETH is lagging a bit, up 1.1% to $2,453. We’re seeing the oft-mentioned ETH call overwriter covering some short calls overnight into this morning, with ~25k Feb calls bought. This is a small part of the book, and we expect more buying from this entity as the market pushes up to avoid auto-liquidation