Episode 83: Crypto Tumbles – Is the Bull Market Over?

Crypto markets tumble as Trump reignites trade tensions with China, causing nearly $20B in liquidations of leveraged positions. Volatility spikes and put skew explodes, especially in Ethereum, with altcoins facing massive drops.

Hosts Imran Lakha (Options Insight) and Dave (FRNT), joined by Friedrich Herzog (Matrixport), discuss if it’s time to buy the dip. Friedrich shares his journey from traditional finance (systematic equities at Goldman Sachs) to crypto, emphasizing Matrixport’s focus on diversified alpha generating strategies. Despite the spat creating turbulence, macro tailwinds remain strong—position sizing, avoiding leverage, and using options for hedging are key to navigating washouts of weak hands.

The following topics is covered:

00:00 – Introduction 00:43 – Today’s Special Guest: Friedrich Herzog from Matrixport 04:21 – Crypto’s Recent Moves & Rumors 06:14 – Downward Pressure Due to China Tariffs 09:24 – Rate Cuts for Powell Amid Sell-Off? 10:53 – Should You Buy the Dip? 12:21 – Friedrich’s Take on The Current Crypto Move 14:32 – Supply of Volatility from Structured Products 16:58 – Volatility Structures & Trade Update by Imran 21:21 – Cheap Gamma from Call Selling? 22:22 – Products & Core Strategies at Matrixport 26:02 – Shifting Liquidity in Matrixport Funds 27:05 – Volatility Strategies in a Choppy Market 29:05 – Closing Thoughts

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Disclaimer: The content presented on Crypto Options Unplugged is not intended as investment advice. Always conduct your own research.