Asia and London Colour

• Front-end vols were pressed lower yesterday with BTC now well under 50% and ETH under 60%.
• We find this move lower in vols unusual ahead of an important NFP number. A miss here would likely see the market price in a higher probability of Fed rate cuts in June or July – a very bullish catalyst.
• Yesterday’s rate cuts by Canada and ECB will also increase pressure on the Fed to cut rates.

Trade Idea:
With lower vols just ahead of a potential catalyst event, buying June Digital Calls could deliver outsize returns.

BTC 80k 28-Jun
Payout is 5x if BTC spot price is above 80k at expiry.
(Spot ref: 71,000)

ETH 5k 28-Jun
Payout is 10x is ETH spot price is above 5k at expiry
(Spot ref: 3,800)