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.