Last week, the crypto market experienced a massive sell-off that sent Bitcoin’s price down to as low as $25,000. The sharp market movement ended several months of unprecedented calmness in the crypto market.
Previous CryptoSlate analysis pinpointed the derivatives market as the primary catalyst for the aggressive sell-off. The futures market saw a significant deleveraging event, resulting in the closure of over $2.5 billion worth of perpetual futures contracts closed out in a single day.
On the other hand, the options market remained remarkably resilient during Bitcoin’s price decline. Glassnode data showed a consistent open interest for both call and put options, indicating that these instruments were largely unaffected by the market volatility.
Graph showing the open interest for Bitcoin puts and calls YTD (Source: Glassnode)
However, it wasn’t all smooth sailing for options. One notable shift the market saw was the aggressive repricing of volatility.
Implied volatility, a mark
We współpracy z: https://cryptoslate.com/bitcoin-dips-but-options-market-holds-steady/
