Volatility Weekly
Volatility Update, 6/23/23
BitOoda Crypto Market Report 6/23/23
Michael Tauckus
What a difference a week makes! Last week at this time, both BTC and ETH were trading at key support levels of $25,000 and $1,640, respectively. As of this writing, both products have rallied significantly with BTC leading the way, up 18.1% WoW piercing the $30,000 level. The rally in ETH is more muted, up 12.7% on the week, trading at $1,877. BTC is emerging as the favored asset, as evidenced by recent price action and market dominance. The resurgence in upside interest is likely a function of the Blackrock ETF announcement, which was followed by a flurry of call buying interest. Fed Chair Powell said Wednesday that “Bitcoin is here to stay,” lending support that regulatory bodies may view BTC as a legitimate asset. Additionally, Fidelity, Charles Schwab, and Citadel partnered to launch the EDX crypto exchange.
As expected, Implied Volatility has popped along with the rally in the underlying price. With Bitcoin price outperforming, BTC IV has jumped back above ETH once again. This may be attributable to a decline in ETH option flow coupled with the more pronounced rally in BTC. While Implied Vol has cooled from its highs on Wednesday afternoon with the rally stalling a bit, positive upside flows continue to support the shift in skew to the calls. This positive call skew premium presents a nice opportunity for yield generating hedges via risk reversal sales.
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What a difference a week makes! Last week at this time, both BTC and ETH were trading at key support levels of $25,000 and $1,640, respectively. As of this writing, both products have rallied significantly with BTC leading the way, up 18.1% WoW piercing the $30,000 level. The rally in ETH is more muted, up 12.7% on the week, trading at $1,877. BTC is emerging as the favored asset, as evidenced by recent price action and market dominance. The resurgence in upside interest is likely a function of the Blackrock ETF announcement, which was followed by a flurry of call buying interest. Fed Chair Powell said Wednesday that “Bitcoin is here to stay,” lending support that regulatory bodies may view BTC as a legitimate asset. Additionally, Fidelity, Charles Schwab, and Citadel partnered to launch the EDX crypto exchange.
As expected, Implied Volatility has popped along with the rally in the underlying price. With Bitcoin price outperforming, BTC IV has jumped back above ETH once again. This may be attributable to a decline in ETH option flow coupled with the more pronounced rally in BTC. While Implied Vol has cooled from its highs on Wednesday afternoon with the rally stalling a bit, positive upside flows continue to support the shift in skew to the calls. This positive call skew premium presents a nice opportunity for yield generating hedges via risk reversal sales.
Bitcoin rallies to touch highest level since April as traders get bullish on ETF news (Link)
BTC/USD: Bitcoin Downturn Seems to be Coming to an End With Impressive Rally (Link)
Crypto is not dead: Fortune 500 companies bullish on the space (Link)
Bitcoin Price Spikes to $138K on Binance.US (Link)
Coinbase Wins Supreme Court Ruling in Arbitration Lawsuit (Link)
Bitcoin Miner Applied Digital Signs AI Hosting Deal Worth Up to $460M (Link)
Fidelity Rumored to Follow BlackRock in Filing for a Spot Bitcoin ETF (Link)
Bitcoin ‘parabolic advance’ means BTC price all-time high in 2023 —Trader (Link)
Bitcoin volatility takes a break as $31K BTC price yearly highs loom (Link)
Banning crypto ‘may not be effective in the long run’ —IMF (Link)
Spain Gives Crypto.com Green Light to Set Up Shop (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.
What a difference a week makes! Last week at this time, both BTC and ETH were trading at key support levels of $25,000 and $1,640, respectively. As of this writing, both products have rallied significantly with BTC leading the way, up 18.1% WoW piercing the $30,000 level. The rally in ETH is more muted, up 12.7% on the week, trading at $1,877. BTC is emerging as the favored asset, as evidenced by recent price action and market dominance. The resurgence in upside interest is likely a function of the Blackrock ETF announcement, which was followed by a flurry of call buying interest. Fed Chair Powell said Wednesday that “Bitcoin is here to stay,” lending support that regulatory bodies may view BTC as a legitimate asset. Additionally, Fidelity, Charles Schwab, and Citadel partnered to launch the EDX crypto exchange.
As expected, Implied Volatility has popped along with the rally in the underlying price. With Bitcoin price outperforming, BTC IV has jumped back above ETH once again. This may be attributable to a decline in ETH option flow coupled with the more pronounced rally in BTC. While Implied Vol has cooled from its highs on Wednesday afternoon with the rally stalling a bit, positive upside flows continue to support the shift in skew to the calls. This positive call skew premium presents a nice opportunity for yield generating hedges via risk reversal sales.
Bitcoin rallies to touch highest level since April as traders get bullish on ETF news (Link)
BTC/USD: Bitcoin Downturn Seems to be Coming to an End With Impressive Rally (Link)
Crypto is not dead: Fortune 500 companies bullish on the space (Link)
Bitcoin Price Spikes to $138K on Binance.US (Link)
Coinbase Wins Supreme Court Ruling in Arbitration Lawsuit (Link)
Bitcoin Miner Applied Digital Signs AI Hosting Deal Worth Up to $460M (Link)
Fidelity Rumored to Follow BlackRock in Filing for a Spot Bitcoin ETF (Link)
Bitcoin ‘parabolic advance’ means BTC price all-time high in 2023 —Trader (Link)
Bitcoin volatility takes a break as $31K BTC price yearly highs loom (Link)
Banning crypto ‘may not be effective in the long run’ —IMF (Link)
Spain Gives Crypto.com Green Light to Set Up Shop (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