Fed Minutes Aftermath
Jan 5, 2022
• 6
Min Read
Key Takeaways
Risk-on assets, including Bitcoin, drop upon the release of the latest Fed minutes, which signals the potential to reduce the balance sheet in Q1 2022. The 10-year has increased over 12% YTD and seems on its way to 2.0% for the first time since 2019.Contrary to apparent market trepidation, the implied volatilities of Bitcoin options have been trending downwards over the prior month.The leverage ratio has surpassed the levels witnessed during the last major drawdown in early December, meaning if prices continue to grind down, we could see the market incur significant liquidati...