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infotech
infotech

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Market Insights

Asia Morning Colour

Published April 2, 2024
2 mins read

Article by infotech

  • Once again, the options market provided an early signal to a sharp downside move, particularly the downside skew in risk reversals.
  • BTC broke 70k and traded below 66k. ETH traded to 3320 lows.
  • The speed of the move was due to large liquidations on retail-heavy exchanges like Binance which saw perp funding rates go from as high as 77% to flat.
  • The move brings spot prices right back into the middle the 60-72k range.
  • While perp funding has compressed, the rest of the forward curve remains very elevated. Will this be the move that brings the whole curve back down?

Trade Ideas:

  1. Sell Spot-Forward Basis which is still yielding 20% for zero downside.
  2. Strategies that do well in range-y market like Accumulators, UFCC/CFCC and Range Accruals.
    Clients may check with the desk on their trading chat for more details.

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