TL;DR
- Crypto market volatility has increased due to recent events, constantly shaking Bitcoin and Ethereum.
- BTC showed signs of recovery on April 15th and 16th, reaching nearly $67,000 driven by the approval of ETFs in Hong Kong. However, it fell back below $63,000.
- Ethereum is in the spotlight due to concerning indicators, such as negative “risk reversals” and a short position in “gamma”.
Lately, cryptocurrency market volatility has been through the roof due to various events. Both Bitcoin (BTC) and Ethereum (ETH) have experienced constant and significant movements in their prices, sowing expectations and uncertainty among investors and market participants alike.
On April 15th and 16th, 2024, Bitcoin showed signs of recovery during the morning in Asia, reaching almost $67,000 per unit. The upturn was fueled by the news that Hong Kong had approved exchange-traded funds (ETFs) for BTC and ETH, sparking investor interest in the region. However, the upward trend did not hold during the session in the United States, where a wave of downside risk was observed, leading Bitcoin to fall back below $63,000.
Meanwhile, Ethereum is garnering special attention due to the presence of some concerning indicators. A nervous sentiment has been observed surrounding ETH, evidenced by “risk reversals” in the market, which have reached a very negative level in the short term, even dropping to -12%. Additionally, the market is short on ETH “gamma,” implying that any sharp movement in its price could have amplified effects on the market.
Bitcoin Struggles to Gain Ground
Investors are beginning to turn to various tools to protect their funds amid market nervousness. The “Sharkfin” strategy emerges as an option to consider. These strategies offer the possibility of making profits without risking substantial losses, making them attractive in times of high volatility.
Two types of Sharkfin strategies for Ethereum have emerged: bullish and bearish. In the case of the bullish strategy, it is based on a deployment in USD with specific exercise price and knockout levels, offering a maximum annual gain of 57%. On the other hand, the bearish strategy presents a similar approach but with a bias towards the downside, providing a maximum annual gain of 54%.
The crypto market shows strong instability amidst the release of new financial products, conflicts in the Middle East, tension in Europe, and the imminent halving. We will closely monitor the evolution of the main assets and stay informed of all developments.
