Is Bitcoin nearing another Black Thursday crash? Here’s what BTC derivatives suggest By Cointelegraph

New 'inverse' Bitcoin ETF now lets investors short BTC price By Cointelegraph

Is Bitcoin nearing another Black Thursday crash? Here’s what BTC derivatives suggest

‘s 51.4% crash in March 2020 was the most horrific 24-hour black swan event in the digital asset’s history. The recent price activity of the past week has probably resurrected similar emotions for investors who experienced the Black Thursday crash.

Over the past week, Bitcoin’s (BTC) price dropped 29% to reach a three-month low at $42,150. $5.5 billion in long contracts were liquidated, which is undoubtedly a record-high in absolute terms. Still, the impact of the March 2020 crash on derivatives was orders of magnitude higher.

Bitcoin perpetual premium/discount vs. spot price, March 2020. Source: TradingView
Bitcoin perpetual premium/discount vs. spot price, May 2021. Source: TradingView
Bitcoin options 25% delta skew, March 2020. Source: Skew
Bitcoin options 25% delta skew, May 2021. Source: Laevitas