QCP Capital: Despite market volatility, the forward basis and financing rates remain strong

ChainCatcher news, QCP Capital reports that the direct trigger for the cryptocurrency seems to be the ETH sell-off by Jump Trading and Paradigm VC. This situation was exacerbated by market makers eager to cut their short-term options gamma positions, causing front-end ETH volatility to soar over 30% to 120%.

Macroeconomic sentiment also worsened due to last Friday's dismal U.S. unemployment data. Large-scale asset liquidations triggered a sharp rise in volatility. The VIX reached 50 (only higher during the COVID pandemic and the 2008 financial crisis), and the USDJPY 1M implied volatility surged to 16%, which could lead to further liquidations.

Global risk aversion sentiment was also heightened by Israel's killing of Hamas leaders over the weekend. Iran vowed to take action, and the U.S. has begun deploying troops to the Middle East.

Despite the market turmoil, forward basis and financing rates performed well.