The US Supreme Court rejected Battle Born Investment's claim to ownership of $4.4 billion worth of Bitcoin, allowing the US government to proceed with the sale of the seized digital assets from the Silk Road market. The negative sentiment and geopolitical tensions brought about by this news offset the market's optimism, causing the price of the currency to fall 2% intraday to challenge the 62k support level and the resulting surge in realized volatility.

Despite this, some analysts believe that this wave of market conditions may be a healthy correction for BTC. The risk aversion shown by investors at high levels has allowed the price of the currency to temporarily retreat to the support range above 60k, reducing the possibility of a sudden decline in the future. The overall optimism has been turned back to neutral, and the entire implied volatility level has been significantly lowered. In addition, the front-end curve is abnormally flat, smoothing out the uncertainty that should have been brought about by CPI in 11 OCT, providing traders who are optimistic about the volatility of economic events with the opportunity to build short-term calendar spreads.

Source: TradingView

Source: Deribit (as of 2 MAY 16: 00 UTC+ 8)

Source: SignalPlus

Implied volatility fell overall

Source: SignalPlus

RV up but IV down

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