Asia Colour - 13 May 25
1/ The U.S. and China just agreed to roll back tariffs — a breakthrough that sent U.S. equities up 3% at the open. U.S. duties drop from 145% to 30%, while China slashes its own from 125% to 10%. Global risk is back on the menu.
2/ Gold, the classic hedge, tumbled nearly 3% before bouncing, as markets returned to a more “normal” macro regime: USD firm, yields up, gold down. Volatility sold off across the board — the VIX dropped to 18, and $BTC front-end vols compressed by over 5 vols.
3/ $BTC and $ETH dipped initially but have since stabilized around $103K and $2.4K respectively. Under the surface, signs of rotation are emerging — $BTC dominance slipped below 63%, and $ETH is beginning to outperform.
4/ $BTC is still stuck in an identity crisis — is it digital gold or a risk-on proxy? That tension is keeping directional conviction muted. But the macro shift could shape derivatives flows: longer-term positioning, less front-end hedging, and a steeper vol curve.
5/ $ETH, meanwhile, is telling a clearer story. Neutral funding, put-heavy options skew, and a clean move above $2.4K aligned with the Pectra upgrade. Longer-dated option flows are picking up — an early signal that $ETH may be shaping up as the next big allocation play.
Read more: www.qcpgroup.com/insights/asia...
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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