⚡My 2Sats 4 2day⚡
🌐 Bitcoin's reaction to last Friday's macroeconomic events was relatively moderate, even with a strong rise in stocks.
💰 Institutional demand for ETFs remained stable, providing underlying support. Still, the initial implied volatility remained firm, with Bitcoin consolidating in a narrow range of $107,000 to $110,000.
🏆 The sustained increase in short-term volatility suggests that traders are positioning themselves, given the overall risk ahead of the Bitcoin conference in Las Vegas, scheduled from today until May 29.
✍🏻 The Nashville Bitcoin Conference held last July offers a useful analogy. At that time, a #Trump conference coincided with a strong increase in one-day implied volatility above 90.
⏳ And followed by a rapid reversal and a drop of nearly 30% of our asset in two days. That episode continues to shape market memory.
🎯 While the probability of a similar drop seems low, positioning suggests a defensive trend. Open interest in perpetuals has decreased and funding rates have normalized in the last 24 hours.
🤔 Some retail traders have reduced their exposure. Demand for short-term bearish positions remains in the spotlight.
🔎 Bitcoin is likely to remain within a range in the short term. Once the event passes and key speeches conclude, initial volatility is expected to compress as risk premiums fade.
We can always rely on a fun fact: Bitcoin has the same number of users as the internet in 1999.
😎🫵🏻💎