Yesterday (May 21st), according to Jin10, Federal Reserve Governor Waller mentioned that the soft inflation data in the next three to five months would allow the Federal Reserve to consider a rate cut by the end of the year, and there is no need for a rate hike at the moment. The Vice Chairman of the Federal Reserve, Barr, also reiterated the need to maintain high interest rates for a longer period. For the first time in five days, the yield on the ten-year U.S. Treasury note fell, at one point dropping to 4.40%, but it has since regained most of the lost ground, currently reported at 4.437%. The three major U.S. stock indices all closed higher, with the S&P and Nasdaq rising 0.26% and 0.2%, respectively, reaching new historical highs again.

Source: SignalPlus, Economic Calendar

Source: Investing

In the realm of cryptocurrencies, as the decision date for the Ethereum spot ETF approaches, the overall Implied Volatility level of ETH has risen again, and the price has successfully broken through the $3,700 mark. Bitcoin prices appear somewhat weak, with the price adjusting back to around $70,000.

Source: Deribit （As of 22 MAY 8:00 UTC）

Source: SignalPlus

In terms of trading, BTC primarily adopted bullish strategies, with the May 31st 77,000 vs 81,000 Call Spread single leg transaction volume nearing 1,400 BTC, becoming the focus of yesterday. For ETH, the significant price increase triggered a large number of stop-loss and take-profit orders. Notably, about 19,500 ETH were bought back as a stop-loss for the May 31st 3,000-C, and approximately 18,000 ETH were sold as a take-profit for the June 28th 3,600-C, marking the most significant reduction in positions yesterday. The bulk trading platform was very active, primarily featuring June Call Spreads, Long 3,400 Puts at the end of May, selling of bullish options and buying of bearish options on Wing, which explained the notable decrease in yesterday’s ETH Vol Skew amid the upward trend.

Source: SignalPlus

Data Source: Deribit, Overall distribution of ETH trading

Data Source: Deribit, Overall distribution of BTC trading

Source: Deribit Block Trade

Source: Deribit Block Trade