Bitcoin Hits 69k
BTC continues to slump lower, falling to $70,000 yesterday, in line with a selloff in US risk-on equities. While derivatives markets paint a bearish picture, the same level of pessimism that defined previous bear market crashes is yet to appear in options
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Bitcoin continued its slump yesterday reaching $70,000 before briefly bouncing off that level. The last time it traded that low was the day of the US election in November 2024, 15 months ago.
The wider crypto market continues to bleed further also — ETH is down 32% over the past 30 days and currently hovers around $2,100.
The decline in yesterday’s session was in line with a selloff across other macro asset classes as traders continue to de-risk. The Nasdaq-100 declined 1.77% and the S&P 500 fell by more than 0.5%.
While derivatives markets paint an undoubtedly bearish picture, the current 40% drawdown from all-time high is yet to result in the same level of panic we’ve seen in historical bear market crashes. Short-tenor at-the-money implied volatility has jumped up significantly for BTC and ETH, currently trading at 60% and 86% from just 34% and 46% only a week ago, respectively. However, not only is short-dated IV trading lower than delivered volatility, suggesting a smaller move in the demand for optionality, implied vol also remains far lower than the 100% plus levels seen in BTC during the 2022 bear market.