QCP Asia Color

My Reading List

DeFi Gaming & Metaverse Infrastructure Markets NFTs

QCP Asia Color

main

The day is finally here! BTC crossed the long awaited 6-figure milestone earlier this morning, rallying to a high of 103,620. The rally above 100,000 triggered a short squeeze which led to the liquidation of US$90 million worth of BTC shorts over 2 hours.

Aggressive topside buying by short sellers cemented BTC’s current price as it stabilised below the 103,000 figure. This is reinforced by market makers hedging their short delta exposure as well.

BTC vols spiked up across all tenors during the rally, with front-end vols rising 10pts and back-end vols jumping 5pts. Vols continue to be elevated even as it has fallen through the day.

The desk observed two very distinct reactions to this morning’s price action:

a) For the front-end traders, they were frantically covering their short positions as the continued rally squeezed into their shorts

b) Mid-tenor traders were relatively muted as many were positioned for this move up

With market in an unchartered territory, we are now in a new price discovery zone. We have returned to a binary scenario, where the spot price could either be driven higher, or selling pressure could push it back below $100k.

You might also like

Article cover

Article cover

Article cover

QCP Asia Colour

Disclosure: The authors of this content and members of Nansen may be participating or invested in some of the protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Nansen does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Nansen at any time without notice. Nansen accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.