Spot Impasse, Debt Impasse

2024 may have been a landmark year for Bitcoin and the cryptocurrency industry as a whole, characterised by ups and downs in the macro environment such as easier global liquidity conditions and Central Bank rate cuts on one end, and major selloffs and liquidations on the other (like we saw in August). However, if anything appears to be certain, it is that the month of December seems hellbent on ending with a markedly less bullish note than at the start of the month. 

BTC is currently ranging at $93.8K, down nearly 1.5% from $95K yesterday. ETH is also moving sideways trailing within a tight range from $3.3-3.5K. The rest of the market remains a sea of red, picking up exactly where it left off last week. 

At-the-money implied volatility levels at all tenors for both BTC and ETH have fallen slightly from Friday, particularly at shorter-tenors and more so for BTC than for ETH which you can see in the chart below. This largely reflects the lull in trading over the festive season however also indicates a stabilisation of price in this bearish period.

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