TechFlow reports that QCP Capital noted yesterday's decline in front-end volatility, with BTC now well below 50% and ETH below 60%. They find it unusual for volatility to decrease ahead of significant non-farm payroll data.
If the data is weak, markets may price in a higher probability of Fed rate cuts in June or July, which would be a strong bullish factor. Yesterday's rate cuts by the Bank of Canada and the European Central Bank also add pressure on the Fed to follow suit.
They recommend buying digital options expiring in June ahead of potential catalysts, which could yield outsized returns. Specific trade suggestions include BTC 80k June 28 and ETH 5k June 28 options.
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