Market Wrap: Bitcoin Pulls Back After Fed Chair's Comments; Volatility Oversold

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MARKET WRAP: Stocks and bitcoin $BTC pulled back after Fed Chair Jerome Powell signaled aggressive rate hikes to come. Volatility sold off, but traders expect more price swings.

Ten-year Treasury yield daily close: 2.31%

Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index ; Ether is the CoinDesk Ether Price Index ; Gold is the COMEX spot price. Information about CoinDesk Indices can be found atSimilar to spot trading volume, implied volatility in the bitcoin options market declined after the Fed's interest rate decision last week. That means the spike in trading activity and choppy price swings were short-lived.

Over the weekend, some traders noticed a large amount of volatility selling, possibly due to an unwinding of option hedges ahead of the Fed decision. As a result, once the event risk is removed, the volatility curve steepens as traders discount near-term price swings. Meanwhile, ether's short-term volatility is trading at a discount relative to bitcoin."This rarely happens and must have been caused by larger unwinding of Fed-related hedges in ETH versus BTC,"

 

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After such statements, it only becomes calmer because I have Tether, which will not fall dawn very much, unlike bitcoin.

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