It has been a busy, all hands-on-deck past couple of months for the Immersive Finance team.
Across the market, much focus is on what is next for Crypto after BTC et al's astonishing strides post-US election results and some unexpected/predicted MicroStrategy action. To be fair, the year also started well – how could we forget January? The SEC approval for spot Bitcoin ETFs proved a seminal milestone for the industry.
In the midst of so much optimism, last Thursday’s extreme moves came as a shock to many who were caught off guard. A correction, after breaking the $100,000 mark and heading for further ATHs, should have been on the cards.
But it was a violent one – with BTC gapping 10% from 99k to below 90k and rapidly rebounding back to around 95k in the course of 10mins – quite a sample for a historic volatility calculation! Overnight ATM vols reacted accordingly by jumping +30%.
With everyone carried off the field, it was a very quiet session overnight in Asia. Some of the vol funds we work with reported a chronic lack of liquidity in the options market and not surprisingly, vols have fallen off a cliff the next day.
As the dust settled, rumours of the aftermath... “over 211k accounts suffering liquidation events - around $1.1bn being liquidated.”
At Immersive Finance we are proud to help our clients to leverage new opportunities in the growing Digital Asset Derivatives and Structured Products space. By providing an Institutional Grade Risk Management Infrastructure, when it matters the most. Built by Quants, Traders and Technologists with +25 years each of experience in FX / IR Options.
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