According to BlockBeats, on April 13th, QCP Capital, a crypto market maker, confirmed in their latest market report that the downside skew in the ETH risk reversal they highlighted on Friday was an accurate early indicator of a decline. QCP Capital theorizes that this phenomenon could be due to speculators with long positions in altcoins purchasing ETH put options for hedging, making ETH options more sensitive to shifts in crypto market sentiment.
In other news, global risk assets experienced a sell-off following Iran's threat of retaliation against Israel. This resulted in BTC dropping to $65,100, ETH to $3,100, and altcoins generally falling by 20-30%. This unexpected shift pushed the funding rate for perpetual contracts below the negative value range of -40%, marking the lowest level for the year. The negative funding rates also impacted the forward curve, causing the short end to fall below 10%.
Following this decline, BTC returned to the tightening range of $64,000 to $73,000. Despite the BTC halving being about a week away, QCP Capital anticipates that breaking through this range in the short term may prove challenging. To navigate the current market situation, QCP Capital suggests that investors consider using CFCC products, which are convertible bonds with a conditional fixed coupon.