Bounce off the floor

Risk appetite continued to recover as U.S. equities posted an eighth consecutive gain, with Bitcoin extending its three-week rally to briefly touch $97K.

Daily Updates:

• The cautious rekindling in risk appetite continued yesterday as US equities rallied for an eighth consecutive trading session, following the ‘Sell America’ narrative that recently gripped financial markets. 

• BTC followed US equities, continuing a now three week long rally and briefly touching $97K (a level it last reached in late February). 

• As we noted in yeste

  rday’s daily comment, short-tenor volatility for BTC has consistently bounced off a floor of 35% for the past 18 months. We saw the same yesterday as short-tenor volatility bounced off that floor by over 5 points, now trading at 40%.

• Volatility smile skews have tilted even further towards OTM calls across all tenors, with the 7-day skew up 4.3% over the past 24 hours.