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XTALPI Diamond HolderI don't know much about Bitcoin, but I capture opportunities by understanding market sentiment and changes in investor psychology. Let's not talk about the crash in the prices of the big and second coins and the plummeting stock prices. Just look at the number of comments on the crypto-related posts by the big shots now, compared to when the prices of the big and second coins were high. The number of comments on posts now is very few, proving once again the correlation between the market and sentiment. I dare not judge what the future market will be like, but I dare to judge that the current crypto market is in an extremely pessimistic period. As the saying goes, buy when no one cares, sell when everyone is talking about it. So I think now is the time to gradually enter the market and pick up cheap chips. Whether it's right or wrong will be proven in the future!
$BTC/USD(BTCUSD.HAS)
$ETH/USD(ETHUSD.HAS)
$Strategy(MSTR.US)
$BitMine Immersion Tech(BMNR.US)
This article is well worth reading. The author believes that the unusual 2.5 BTC drop was due to triggering a non-pure-crypto-native multi-asset portfolio/strategy (possibly a multi-strategy hedge fund, or something like BlackRock's model portfolio business, which allocates between $iShares Bitcoin Trust ETF(IBIT.US) and $iShares Expanded Tech Software Sector ETF(IGV.US) and must automatically rebalance due to severe volatility). That is, a massive sell-off in software stocks triggered the rebalancing between IGV and IBIT. Meanwhile, as Nasdaq lifted the options cap trading restrictions on IBIT, IBIT's options trading became very active. This deleveraging subsequently triggered Short Gamma, exacerbating the downtrend and forcing dealers to sell IBIT. However, because the sell-off was so severe, market makers had to net short BTC without considering inventory.
The above viewpoint is quite interesting; it's recommended to read the original article. But what I'm paying more attention to is that as IBIT's trading volume and liquidity have increased significantly, more institutions are using IBIT's options to hedge their BTC positions. Previously, MSTR played this role, i.e., the former "Long BTC Short MSTR" strategy. However, as MSTR's premium has compressed to around 1.1, there isn't much room for the premium to fall further, so this strategy is no longer applicable.
In other words, as ETF trading volume increases and DAT premium compresses, DAT companies might no longer serve as a hedge for underlying asset exposure. This would alleviate upward pressure on DAT's stock price. I believe this trend also applies to BMNR.
$Strategy(MSTR.US)$BitMine Immersion Tech(BMNR.US)
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