Bitcoin ETF

Bitcoin

April

<p>The world’s largest cryptocurrency Bitcoin (BTC) witnessed a sharp 10% correction from its all-time high reaching all the way lower to $65,500. This slump in the <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin price</a> has helped in reducing overall volatility as traders eagerly await the Bitcoin options expiry on Friday.</p>
<h3 id="bitcoin-options-market-data">Bitcoin Options Market Data</h3>
<p>According to Greeks.Live, BTC Dvol has fallen below 70%, indicating a continued release of downward pressure on implied volatility (IV) as noted at the end of the previous month. Recent block trading activity has shown a decline, primarily marked by the purchase of call options by whales post the Bitcoin halving. The substantial margin available to these large investors underscores the significance of monitoring their subsequent actions.</p>
<p>Furthermore, the <a rel="noopener noreferrer nofollow" href="https://twitter.com/GreeksLive/status/1776096181980209547" target="_blank">data</a> from Greeks.Live shows that 18,000 BTC options are set to expire, characterized by a Put Call Ratio of 0.64, a Maxpain point at $68,000, and a notional value of $1.2 billion. Today marks the first weekly delivery day following the significant quarterly delivery.</p>
<p>This week witnessed a weaker crypto market performance, with the $70,000 level seeing short-sellers prevail. Selling calls emerged as the dominant trade of the week, accompanied by a notable decline in implied volatilities (IVs) across all major terms.</p>
<p>While Bitcoin benefits from post-halving sentiment support, other coins are experiencing a short-term bear market. Additionally, ETF inflows have recently slowed down as the market assimilates the premiums from ETFs.</p>
<h3 id="btc-etfs-flows-subside">BTC ETFs Flows Subside</h3>
<p>The overall inflows in the Bitcoin ETF market have subsided this week with net inflows staying around $100 million per day. Moreover, the <a href="https://coingape.com/gbtc-outflows-drop-to-the-lowest-in-a-month-bitcoin-price-rally-ahead/" target="_blank" rel="noopener noreferrer nofollow">GBTC outflows</a> have also dropped to their monthly lows, while the inflows in BlackRock’s IBIT and Fidelity’s FBTC have been on a decline. On Thursday, the total Bitcoin ETF inflows stood at $106 million with BlackRock’s IBIT seeing $144 million inflows and GBTC recording $79 million in outflows.</p>
<p>However, it turns out that the inflows into spot Bitcoin ETFs over the past two months have significantly helped the BTC price rally to $73,500.</p>
<p>Bloomberg ETF strategist Eric Balchunas shares an interesting observation that the majority of Bitcoin’s 40% gains since the ETF launch have been observed after trading hours, leading to substantial price gaps between closing and opening prices. He highlights a noteworthy chart demonstrating the disparity between intra-day and after-hours returns for $IBIT.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr">The vast majority of the 40% gains in bitcoin since ETF launch have been after hours with huge price gaps forming bt close and open.. great chart showing the intra-day vs after hours return for <a href="https://twitter.com/search?q=%24IBIT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$IBIT</a> from <a href="https://twitter.com/psarofagis?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@psarofagis</a> <a href="https://t.co/3EVbyRpzra" rel="noopener noreferrer nofollow">pic.twitter.com/3EVbyRpzra</a></p>
 <p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1775996934047531273?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 4, 2024</a></p>
</blockquote>
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<p>The post <a href="https://coingape.com/bitcoin-options-market-volatility-declines-amidst-btc-price-pullback/" rel="noopener noreferrer nofollow">Bitcoin Options Market: Volatility Declines Amidst BTC Price Pullback</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.</p>

Bitcoin Options Market: Volatility Declines Amidst BTC Price Pullback

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