QCP Capital: Multiple factors are brewing a market storm, but the encryption market forward basis and financing Interest Rate remain stable

PANews reported on August 5th that QCP Capital, a Singaporean encryption investment institution, feels that they have encountered a perfect storm, with panic dumping and liquidation in the Asian morning causing the trading prices of BTC and Ethereum to fall to lows of $49,000 and $2,116 respectively. The triggering factor that immediately appeared in the Cryptocurrency market seems to be the aggressive ETH dumping by Jump Trading and Paradigm VC. Due to the front-end ETH Fluctuation rate soaring by more than 30% to over 120%, market makers are competing to reduce short-term gamma values, which may further exacerbate market Fluctuation. The macro sentiment also plummeted after the terrible unemployment data released by the United States last Friday. In addition, the massive unwinding of all assets led to a sharp rise in Fluctuation. The VIX touched 50 (higher only during the panic of the COVID-19 pandemic and the 2008 financial crisis), while the USD JPY one-month at-the-money Fluctuation rate soared to 16%. This may lead to further unwinding. With Israel killing a Hamas leader over the weekend, global risk aversion has also surfaced. Iran has pledged action, and the United States has actually begun deploying troops to the Middle East. Surprisingly, despite the market turmoil, the forward basis and financing Intrerest Rate have remained strong. Strategies that utilize these returns for expressing trading views in a downside risk-free manner.