Influenced by the latest round of Middle Eastern geopolitical news, Bitcoin’s intraday drop exceeded 4%, reaching a low of 63606, and forming a support level around 64000.

Source: TradingView

Due to the decline in cryptocurrency prices, the world’s largest Bitcoin spot ETF — BlackRock’s IBIT — has ended its 71-day streak of continuous positive inflows. Meanwhile, Grayscale’s GBTC experienced a sell-off of up to $130 million, significantly surpassing the total inflows of other ETFs.

Since the approval of ETFs, their daily net inflows have been regarded by many investors as a sentiment indicator for the BTC market. The fact that IBIT has lost its market appeal over the past day may be seen as a short-term bearish signal. However, it is also important to note that the net inflow achieved by the ETF since its launch has far exceeded market expectations, with assets under management surpassing $20 billion in such a short time. A temporary slowdown in flows is understandable.

In other news, according to a report by U.Today, citing two anonymous executives, banking giant Morgan Stanley may allow 15,000 brokers to sell Bitcoin ETFs to their clients. Up to this point, the bank has only been actively offering these products, meaning they have not proactively recommended investing in Bitcoin ETFs to their clients. However, as the report suggests, this policy change (if not just a rumor) could significantly increase the demand for BTC ETFs.

Source: Farside Investors

In terms of options, the overall level of Implied Volatility has plummeted again, with BTC and ETH cycle options continuing yesterday’s selling pressure. IV fell by about 8%, particularly in ETH, where trades within the April 26, 2024, strike price range of $3000–$3200 accounted for nearly all of ETH’s trading volume over the past day. For BTC, there was selling at both At-The-Money and on the wings.

Additionally, there are some bullish options being built near the $70000–$80000 strike price range for BTC towards the end of May. The selling of deeper Out-Of-The-Money bullish options mainly came from large block platform custom strategies, which involved selling the May 110000 Call while simultaneously purchasing an equal quantity of the June 110000 vs 160000 Call Spread.

Source: Deribit (As of 25 APR 8:00 UTC)
Source: SignalPlus
Data Source: Deribit, Overall distribution of ETH tradings and tradings on 26 Apr 24.
Data Source: Deribit, Overall distribution of BTC tradings and tradings on 26 APR 24.
Source: Deribit Block Trade
Source: Deribit Block Trade

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