Hitting the Debt Ceiling and the Buy Button

Jan 27, 2023 • 9 Min Read

Back to Life

If you were 100% deployed on January 1st and decided to lock in your returns for the year, frankly, we wouldn’t blame you, especially not after the carnage witnessed last year. However, as we discussed last week, we view this current rally as a sign of more opportunities to come and are excited to help our clients navigate the crypto market in 2023.

The choppy, directionless crypto market sprung to life just a couple of weeks ago, with spot volumes ticking noticeably higher. Given the prevailing liquidity conditions, it did not take an enormous amount of spot volume to inject some volatility into the market.

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Below we see a parabolic rise in perpetual futures volume starting a couple of weeks ago. While we are yet to see the same volumes witnessed in 2021, this spike in activity is a welcome sight for crypto investors.

The chart in this report is only accessible to members

FOMO in the Options Market

The 25-delta skew is a metric that compares the relative value of put options and call options in the market. It is determined by comparing the implied volatility of 25-delta put options to the implied volatility of 25-delta call options, which is then normalized by the at-the-money implied volatility.

This metric helps to understand the m...

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