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QCP CapitalQCP Capital2024/12/06 03:22
By:Eileen Ngah
  • The day is finally here! BTC crossed the long awaited 6-figure milestone earlier this morning, rallying to a high of 103,620. The rally above 100,000 triggered a short squeeze which led to the liquidation of US$90 million worth of BTC shorts over 2 hours.

  • Aggressive topside buying by short sellers cemented BTC’s current price as it stabilised below the 103,000 figure. This is reinforced by market makers hedging their short delta exposure as well.

  • BTC vols spiked up across all tenors during the rally, with front-end vols rising 10pts and back-end vols jumping 5pts. Vols continue to be elevated even as it has fallen through the day.

  • The desk observed two very distinct reactions to this morning’s price action:

a) For the front-end traders, they were frantically covering their short positions as the continued rally squeezed into their shorts

b) Mid-tenor traders were relatively muted as many were positioned for this move up

  • With market in an unchartered territory, we are now in a new price discovery zone. We have returned to a binary scenario, where the spot price could either be driven higher, or selling pressure could push it back below $100k.
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