BTC’s implied volatility, a widely used measure of risk gleaned from the derivatives market, has recently been falling. This is in stark contrast to the rising VIX, which measures implied volatility for the S&P 500 index (comprised of the largest U.S. equities). This could be implying less cautious sentiment for BTC compared to equities and is also potentially indicative of a typical consolidation phase given the low trading volumes as well.

The aggregated exchange balance for BTC continues to hover around YTD lows. No significant movements were seen in OTC (over-the-counter) desks’ balance for BTC. OTC desks are typically used by larger investors.

BTC and ETH put-call ratios are at yearly lows. Implied volatilities (vols) dropped again over the past week and are at subdued levels. 1-month implied vol currently stands at 55.3% (vs. 59.3% a week ago) and 69.8% (vs. 73.0% a week ago) for BTC and ETH, respectively.

BTC perpetual futures funding rates remain positive (longs pay shorts). ETH funding rates are still mainly negative (shorts pay longs).

No notable movements in leveraged traders’ and asset managers’ net positions in CME Bitcoin futures over the past week.

Leveraged traders are typically hedge funds and various types of money managers, including commodity trading advisors and commodity pool operators. The traders may be engaged in managing and conducting proprietary futures trading, and trading on behalf of speculative clients.
The asset manager category consists of institutional investors, including pension funds, endowments, insurance companies, mutual funds, and those portfolio/investment managers whose clients are predominantly institutional.

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