Worries about the global banking system prompted traders to take shelter in short-term Treasuries and noshitcoins says these concerns, plus BTC derivatives data calls the current rally to $28,000 into question.
from 11 large banks may not be enough to solve the FRB's liquidity problems.
The yield on 6-month U.S. Treasuries, for example, have decreased from 5.33% on March 9 to 4.80% on March 20. As investors prepare for the impact of inflation, recession, or both, this development indicates a greater demand for short-term instruments. The change since March 9 reversed the entire movement from 2023, with the indicator closing 2022 at 4.77%.
As a result, futures contracts on healthy markets should trade at a 5% to 10% annualized premium — a situation known as contango, which is not unique to crypto markets.Since March 15, the BTC futures premium indicator has remained unchanged at 2.2%, indicating no additional demand from leveraged buying activity. Numbers below 5% indicate pessimism, which is not what one would anticipate after price gains of 36% in eight days.
The 25% delta skew is a telling sign showing when market makers and arbitrage desks are overcharging for upside or downside protection. In bear markets, options investors give higher odds for a price dump, causing the skew indicator to rise above 8%. On the other hand, bullish markets tend to drive the skew metric below -8%, meaning the bearish put options are in less demand.
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