Asia Colour

Beyond the headline figures, the equal-weighted SP 500 has reached an all-time high as bullish momentum broadens beyond just the Magnificent 7.

Small-cap stocks have outperformed large-caps in 2 out of the last 3 rate cut regimes. Given the growing correlation between crypto and small-cap equities, could BTC outperform other risk assets?

What is the crypto market whispering?

BTC spot ETFs have seen strong inflows for 12 consecutive days, while ETH spot ETFs have faced outflows for 8 days. BTC’s dominance in the options market reflects the macro-driven nature of the current rate-cut regime.

On the options desk, we’re seeing modest call spread buying, while front-end vols have dropped. These signals suggest cautious optimism, and we don’t anticipate significant movement this week as markets await clarity on the extent of the September rate cut.

Trade Ideas

Ride out the rest of Q3 by accumulating BTC spot at 8.27% discount (57,600) every week as long as spot is below 67,000.

BTC ACCUMULATOR

• Maturity: 1NOV24 (10 weeks)
• Strike: 57,600 (-8.27%)
• Upper Barrier: 67,000 (+6.7%)
• Observation Frequency: Weekly

Spot ref: 62,780 BTCUSD