China Attacks Bitcoin

In this week's Crypto Insight I discussed...

The latest bout of weakness across crypto markets triggered by a strong dollar from the hawkish FOMC, but more importantly the Chinese ban on Bitcoin mining crushing sentiment in an already fragile market.

On technicals, the big support level that must be held to prevent further carnage is 28/29k. If broken we could slide quickly to 20k which was the old ATH before last years breakout.

In vol space, we have seen vol/spot correlation to be firmly to the downside, justifying the put skew that has been apparent for some time now. Implied vols and term structure have popped unsurprisingly. I still think deep put skew is not fully pricing the risk of a fast break towards 20k and so I have been entering 28000/20000 put ratios to buy the lower strikes which I think have explosive potential should we get there in the next week or two.

Filmed on on Tuesday 22nd June 2021.

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