Asia Colour

Nvidia’s impressive earnings report last night triggered a classic “sell the news” reaction in the crypto markets today. Consequently, Bitcoin has slipped back to $59,000, and Ethereum is trading sluggishly around $2,500.

Front-end vols spiked overnight on the move lower in spot but has since sold off following the Nvidia earnings report, dropping around 10 vols from its peak. Risk reversals until Oct are still skewed towards Puts in both BTC and ETH, indicating that the market remains cautious about the downside.

In the lead-up to next week’s non-farm payroll report, we expect market volatility to continue its downtrend as the market positions itself for potential rate cuts by the Fed. Tonight’s US GDP report is likely to be a non-event for crypto, especially if it reinforces the ongoing narrative of a slowing US economy.

Trade Idea

Will we see more downside as we enter the 4th quarter of the year? With the absence of any catalysts in the near term, we anticipate prices to continue chopping within the range as we move into September.

Principal Protected BTC Range Accrual

• Maturity: 22NOV24
• Coupon Frequency: Weekly from 6SEP24
• Coupon Range: 55,000 to 64,000
• Coupon Rate: 15% p.a. in USD if BTC/USD fixes at-or-within Coupon Range, 0% pa otherwise

Spot Ref: 59,600