💰 Bitcoin options implied volatility rises sharply on short-dated puts as traders prepare for potential downside swings: analysts

According to the CF Benchmarks' Bitcoin Volatility Index, the implied volatility for both short-dated puts and short-dated calls was approximately the same at the end of May, prior to the recent market downturn, during which bitcoin's price has fallen by over 14% in the past month. However, CF Benchmarks analysts are now observing a significant increase in implied volatility for near-term puts compared to their corresponding calls.

💰 STHs faced substantial losses as Bitcoin briefly fell below $60k

Over the weekend, Bitcoin saw a dramatic drop below $60,000, sparking over $537 million in realized losses predominantly from short-term holders (STHs). This sell-off highlights the volatility and reactive behavior of these market participants, with $441 million of these losses coming from those who had held BTC for a month or less. As the market turmoil unfolded, key on-chain metrics revealed a steep decline in the percentage of STH supply in profit.

💰 Bitcoin’s supply in profit drops to 80% as post-halving effects take hold

Bitcoin’s percentage supply in profit reflects dynamic market conditions. The first chart illustrates historical data from 2013 to 2024, showing periods where over 90% of the supply was in profit, particularly during 2017 and late 2020 to early 2021. This period correlated with significant price rallies, highlighting the cyclical nature of Bitcoin’s market.