Maybe Bitcoin didn’t bottom? SEC lawsuit against Binance shakes BTC bulls’ confidence

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Uncertainty looms over Bitcoin's future as the SEC’s lawsuit against Binance and CZ shake investors’ confidence in the entire crypto market.

According to Jon Reiter, CEO of Data Finnovation and ChainArgos, DCG CEO Barry Silbert pulled $1 billion out of his personal holdings just as cryptocurrency hedge fund Three Arrows Capital defaulted. While this could have been a coincidence, it certainly draws even more attention to the intercompany loans and deals inside DCG.

Investors should be especially attentive if Bitcoin futures contract premiums flip negative or if increased costs for hedging using BTC options occur.are popular among whales and arbitrage desks. However, these fixed-month contracts typically trade at a slight premium to spot markets, indicating that sellers are asking for more money to delay settlement.

In short, if traders anticipate a Bitcoin price drop, the skew metric will rise above 7%, and phases of excitement tend to have a negative 7% skew.Bitcoin 30-day options 25% delta skew. Source: Laevitas Consequently, those betting on a Bitcoin bull run should adjust their expectations because investors hate uncertainty.

 

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