At the Metainsight Roundtable hosted by Metainsight, the theme is “Cold Thinking of FTX Event: How to Safely Manage Customer Assets”.
LD capital Partner Joy lou said that the implied volatility of BTC 2.27%-news/">BTC and ETH was above 100% in the few days after the FTX thunderstorm incident, and the single-day increase more than doubled. In the traditional market, if the implied volatility of a target exceeds 100%, it fully reflects the confusion of market expectations, and the root of the volatility comes from the re-anchoring of unexpected changes.
On November 8th, the implied volatility of Ethereumwas over 165%, and Bitcoin should also exceed 110%, indicating that the bearish sentiment in the entire market was very strong at that time, and there were many people who turned short temporarily, but the bearish sentiment and Whether the market will fall or not is another matter.
The fluctuations in the derivatives market, first, will have a great impact on the bearish sentiment in the market. Market makers are extremely bearish on the market, which will reduce their positions, and the liquidity of derivatives will further decline. After that, spot It will also have a greater impact on market prices.
After the sharp drop in the open interest of derivatives on centralized exchanges, it will be very beneficial to DEX, especially the products of derivatives DEX.