H&S Neckline Broken, Put Options in Profit, Target Achieved, But Just Hold It.

I. One Month in Review: Calls Right, Profit Delivered

This is the most important thing to address first.

Over the past four weeks, we made a sequence of directional calls. Every one of them was validated this week:

 Buying Put protection at historic DVOL lows, timed with a confirmed H&S breakdown and structural macro headwinds, produced a textbook result. The same logic applies next time similar conditions align — low vol + technical breakdown + macro pressure = buy the Put, not the dip.

II. DVOL: From Historic Low 35 → Spike to 55 → Now Pulling Back to 48

The most important options market development of the week.

The DVOL chart  tells the complete story of this trade in one image:

What does DVOL at 48 mean for strategy going forward?

 DVOL at 48 is now in the range where Iron Condor and other seller strategies begin to generate meaningful premium — unlike the 35 floor where selling was not worthwhile. However, with price still in a downtrend and macro unresolved, the directional risk to sellers remains elevated. We need either price stabilization or further DVOL compression before recommending seller strategies.

Price Action (Bybit Platform Data, updated June 8):

This was BTC's worst single-week percentage decline since the FTX collapse in November 2022.

 BTC opened the week at approximately $73,760, briefly pushed as high as $74,092, then fell to a low of $59,130 — the first time below $60,000 since October 2024. A wave of dip-buying and short-covering quickly brought the price back to $61,200, with further recovery to ~$63,000.

IV. Three Forces in Collision: Why It Dropped This Far

4.1 Macro Shock: Blowout NFP Reignites Rate Hike Pricing

The nonfarm payrolls report came in well above expectations, triggering not just "Higher for Longer" fears but actively reigniting rate hike pricing for later in 2026. June 10's CPI release is now the next critical volatility event.

The Fed's dilemma deepened this week: labor market strength of this magnitude rules out any near-term dovish pivot. Every positive employment print is a negative for risk assets priced on rate cut expectations.

4.2 Liquidity Vacuum: SpaceX IPO and Meta's Dilution

SpaceX is scheduled to list on June 12. Morgan Stanley is telling investors the company's revenue could hit $3.4 trillion by 2040; Goldman Sachs projects its AI division revenue could surge to $322 billion by 2030 from just $3.2 billion last year. At a nearly $1.8 trillion IPO valuation, this is the largest liquidity draw from the market in years. Simultaneously, tech giants like Meta have shifted from share buybacks to new equity issuance — further diluting the valuation logic and amplifying the rotation away from crypto.

4.3 Internal Shock: Strategy's "Never Sell" Vow Breaks

Strategy sold just 32 BTC for approximately $2.5 million — just 0.0038% of its 843,700 BTC holdings. The market's real concern was not these 32 coins, but the systemic signal behind the sale: Strategy's average cost basis is ~$75,700 per coin; at $63,000, the company carries approximately $10.8 billion in unrealized losses. To meet preferred share dividend obligations — with an annualized dividend rate of approximately 11.5% — the company was forced to sell for the first time since 2022. This shattered 4 years of the "never sell" belief that gave hodlers their sense of structural security.

🔴 Breaking (June 8): Strategy Resumes Buying — 1,550 BTC at Avg. $65,332

 Strategy has announced it purchased 1,550 BTC between June 1–7 at an average price of $65,332, for a total of $101.3M. This directly follows the market-rattling sale of 32 BTC disclosed last week. The resumption of buying signals that the sale was a one-time liquidity event to cover preferred share dividends — not a strategic shift in conviction. This is a significant positive signal for holder sentiment, though the purchase price of $65,332 remains well below Strategy's average cost basis of ~$75,700.

V. Technical Picture: Extreme Fear and Oversold Conditions

5.1 ETH RSI at 12.78 — Most Extreme Oversold Reading in History

Ethereum's daily RSI fell to 12.78 — the most extreme oversold reading ever recorded for ETH. RSI below 30 is typically considered oversold; 12.78 indicates 

. Historically, readings this extreme have consistently marked at least a short-term low.

BTC daily RSI hit 15.45 — double confirmation of the oversold signal.

While ETH's 12.78 grabbed the headline, BTC's daily RSI fell to 

 at the same time. Two largest crypto assets in the market registering historically extreme oversold readings simultaneously is not a coincidence — it is a market-wide capitulation event. BTC dropping 16% in a single week while RSI compresses to this level signals mechanical seller exhaustion; historically, readings this extreme have consistently preceded meaningful technical bounces.

 BTC 15.45 + ETH 12.78 occurring together is the strongest oversold signal this cycle has produced. It does not confirm the bottom is in — but it does mean the risk/reward of new short positions at current levels is poor, and a 10–15% technical relief rally from the lows is well within historical precedent.

5.2 ZEC Bug Triggers "Indiscriminate Selling"

Zcash (ZEC) disclosed a security vulnerability, and the market immediately displayed "indiscriminate selling" behavior — assets like XMR that were entirely unaffected by the bug also sold off sharply alongside ZEC.

market sentiment has reached a breaking point.

 Investors are no longer screening news rationally — they sell first and assess later. This is a characteristic of extreme capitulation, but also of an extremely fragile market structure where small negative catalysts can trigger disproportionately large price declines.

U.S. spot Bitcoin ETFs experienced their most significant weekly net outflow to date, totaling $1.7 billion. This trend signals a cooling of institutional demand, driven primarily by macroeconomic factors rather than crypto-specific news. The outflows, which included a notable $1.34 billion from BlackRock's IBIT, were largely attributed to a strong U.S. jobs report.

According to Citi analysts, ETF flows account for approximately 45% of BTC's weekly return variation — meaning ETF outflows are not just a sentiment indicator, they are a mechanical source of downward price pressure. ETFs previously absorbed large amounts of BTC supply during the recovery phase; now that flow has reversed, ETFs have become contributors to downside momentum rather than a stabilizing force.

Was $59,130 the cycle low? June 10 CPI is the next critical test.

VII. Strategy: Put Options Closed, No Chasing Longs

Beginner

20260609-063731.png

Bybit Options Weekly Review: Jun 2–Jun 8

Big developments (and controversy) in prediction markets. New Bybit perp linked to world's 6th richest person.

institutional OTC prediction markets trading desk

, expanding its trading business into event-contract markets and enabling large investors to execute prediction market positions off-exchange.

The offering initially supports contracts listed on 

, with Galaxy acting as principal counterparty and allowing clients to pair prediction market exposure with hedges across equities, commodities and other asset classes.

Galaxy said it has already facilitated a $10M trade with crypto hedge fund Arca tied to the outcome of the CLARITY Act, providing institutional-scale liquidity for a market that has historically been dominated by retail traders.

 sells any Bitcoin by May 31, 2026?" market, which has generated more than $120M in trading volume and is currently pricing a 99% probability of "No" as traders debate how the market should be resolved.

 has intensified the conversation around prediction market regulation by 

publicly endorsing CFTC Chair Michael Selig's position

 on the agency's authority over the sector.

In a post on Truth Social, Trump said: "It is critically important that the 

CFTC's exclusive authority over Prediction Markets is maintained,

He also framed the issue as part of a broader competition for financial-market leadership, stating that other countries are pursuing this "new form of Financial Market" while the US seeks to remain at the top.

, a crypto market maker and algorithmic trading firm with more than $3.5T in annual trading volume, said it has 

entered the prediction markets sector as a liquidity provider

The firm is now quoting continuous two-sided markets on prediction contracts, reflecting its view that prediction markets are emerging as a significant asset class for trading and hedging real-world event risk.

CME Group's 24/7 crypto derivatives market 

launched last Friday (May 29) and recorded a strong first weekend of activity.

On the following Saturday and Sunday, more than 7,200 contracts were traded, representing around $50M in notional value, according to the company.

 issued an order for approval to KalshiEX LLC for the

 making Kalshi the first CFTC-registered designated contract market to officially list a BTCPERP contract with no expiration date.

Ambiguity surrounding 24/7 CFTC-registered exchanges has been partially addressed, with the CFTC providing guidance for 24/7 trading, clearing and settlement.

 for its native token, bringing back the branding first proposed in Telegram's original blockchain white paper.

TON will remain the name of the blockchain, while Gram will become the name of its native currency.

Telegram CEO Pavel Durov said the move marks a return to the project's roots and forms part of his wider "Make TON Great Again" campaign.

The rebrand follows recent network upgrades, lower transaction fees and plans for Telegram to take a larger role in TON governance.

over the past week, bringing its total holdings to 5.42M ETH, equivalent to approximately 4.49% of 

's circulating supply and moving closer to its stated goal of accumulating 5% of all ETH.

Bitmine also disclosed that 4.72M ETH is currently staked through its validator operations, representing roughly 87% of its ETH treasury and approximately $9.5B in staked assets, with the firm projecting annualised staking revenue of around $258M based on current yields.

, a new "GENIUS-ready" stablecoin issued by Anchorage Digital Bank and designed for institutional trading desks, treasury operations, and regulated collateral use cases.

The stablecoin is based on Ceffu's institutional custody and collateral infrastructure and is backed 1:1 by cash, short-dated U.S. Treasuries, and Treasury-backed repo exposure, with reserves held under OCC supervision and attested monthly by Deloitte.

 the operator of Upbit, in a deal valued at roughly $408M.

The investment follows Hana Bank's recent $670M move into Dunamu and signals a broader strategic shift.

 Layer 2 network designed to support faster, lower-cost onchain applications and payments across the Ethereum ecosystem, has introduced 

, a new gateway designed to connect AI interfaces with Base wallet infrastructure.

Base MCP acts as a secure bridge between users' Base Accounts in the Base App and AI interfaces that support the open Model Context Protocol standard, including Claude, ChatGPT, and Cursor.

The integration will allow users to interact with Base applications through natural language prompts, including swapping tokens, transferring funds, and accessing DeFi applications across lending, swaps, perpetuals, and token launches.

 with the launch of multi-chain trading functionality in its app, according to their announcement on X.

The update will allow users to trade tokens across multiple blockchains, including 

, the exchange's EVM-compatible Layer 2 blockchain, has introduced 

, an upgrade designed to let developers, institutions, and ecosystem participants create custom crypto markets using a shared exchange infrastructure stack.

The upgrade moves core trading functions such as matching, margin, liquidation, settlement, and risk management to the protocol layer, reducing the need for builders to recreate complex exchange systems from scratch or rely entirely on centralized infrastructure.

, a Georgian lari-backed stablecoin designed to bring the country's national currency onto blockchain-based payment rails under a dedicated stablecoin regulatory framework.

The initiative aims to support faster and lower-cost digital payments, remittances, cross-border transfers, and programmable financial infrastructure, while building on Georgia's broader push to position itself as a crypto-friendly jurisdiction with regulatory clarity around reserve management, redemption rights, and AML compliance.

DELL is a publicly traded, US-based technology company focused on:

DELL has been active in the technology hardware market for decades and is one of the most recognised names in global computing.

While Dell is often associated with PCs, an important part of its business today is linked to 

This refers to the physical systems that companies use to store data, run applications, manage workloads and support internal technology operations. 

These systems include servers, storage platforms, networking equipment and related services.

Enterprise infrastructure has become more relevant because of the rapid growth of 

AI applications require large amounts of computing power, especially when companies are training models, running inference, processing large datasets or deploying AI tools across their businesses. 

As a result, demand has grown for advanced data-centre infrastructure that can support heavier and more complex workloads.

Dell is connected to this AI trend through its infrastructure business. 

The company provides servers and systems that can be used in AI data centres, including infrastructure designed to work with high-performance chips and accelerated computing platforms. 

In simple terms, Dell is not building the AI models themselves, but it provides some of the equipment that helps companies run AI-related workloads.

This matters because the AI market is not only about software or semiconductors. Behind every AI application is a large physical infrastructure layer: servers, storage, cooling, networking and data-centre capacity. 

Companies expanding into AI often need to upgrade their existing technology systems, and 

Dell is one of the established providers in that area.

Dell's relevance also comes from its existing relationships with large businesses, cloud providers, public-sector clients and technology buyers.

Many organisations already use Dell systems across their IT infrastructure, which gives the company a practical role in helping customers expand or modernise their computing environments. 

This is particularly relevant as AI adoption moves from early experimentation into broader enterprise deployment.

For market participants, Dell is relevant because it sits at the intersection of traditional enterprise technology and the growing demand for AI infrastructure. Its role is more about enabling computing capacity than developing AI software directly.

what is bitcoin defi .png

5 June 2026: What's New in DeFi?

Yet one of these tokens still has a year-to-date advance of 140%!

Here's how some of the world's biggest cryptos (excluding stablecoins) have performed of late:

 tests 100-day SMA support, as expected since June 1

Recall, that TRON was listed among our “

” (June 1-5), published at the start of this week.

As part of the “DOWNSIDE” scenario, we wrote this on Monday, June 1st: 

Sure enough, this week's selloff has TRON now testing support around its 100-day SMA at the time of writing.

Despite the rapid declines of late, the crypto world did witness some skyrocketing price action earlier this week!

HYPE soared to a new record high of 75.79 on June 1st, held around those levels through mid-week, before succumbing to the crypto-wide selloff.

Despite now trading about 20% below its ATH, HYPE can still boast of a 

 fulfills forecasted (May 25) “technical pullback”, before new ATH on June 1

Recall that HYPE was featured among our previous “

: a high-performance layer-1 blockchain purpose-built for on-chain order book perpetual futures and spot trading. 

It uses the HyperBFT consensus mechanism, optimized for low-latency trading. 

HYPE is used for transaction fees, staking, and protocol governance.

For more on how HYPE’s token value is supported by:

DISCLAIMER:
This article is provided for general information and reflects the author’s views only. It does not constitute investment advice, nor an offer or solicitation to buy or sell any financial instruments or digital assets. Your ability to access or use any products or services mentioned may be subject to the laws and regulatory requirements of your jurisdiction.

June 5 - web banner - Market Pulse.png

Cryptos this week: BTC, ETH crash; TRON hits downside target; HYPE hits new record high!

Nasdaq 100 still up 20% so far in 2026, while BTC has tumbled 28% year-to-date. Here's why.

Sentiment in crypto has weakened significantly since mid-May 2026.

This shift has been flagged by the downwards move in the Block Scholes Risk Appetite Index for 

This has been in sharp contrast to recent moves in US equities, which have traded to record highs over the same period. 

Both indexes had been bolstered by optimism around 

On the other hand, after falling below $70K at the start of the week, 

 has continued its selloff, falling to a 

 also hit a 13-month trough - lowest since April 2025!

While in general risk-on assets have been whipsawed by geopolitical headlines as the US-Iran conflict enters its fourth month, US equities appear to have weathered that storm far better than crypto, with factors such as strong corporate earnings and the boom in AI infrastructure investment to support prices.

In contrast, idiosyncratic factors for BTC and ETH have played a role in their comparatively poor YTD performance. Since 15 May 2026, spot Bitcoin ETFs have seen 13 consecutive sessions of outflows, with more than $4.4B in cumulative redemptions.

That marks their longest losing streak since the products first debuted back in January 2024.

Additionally, the largest Bitcoin digital asset treasury, 

, offloading 32 BTC for approximately $2.5M. 

While only a fraction of the firm's 843,706 BTC holdings, the sale marked a stark departure from Michael Saylor's long-held mantra: "Sell a kidney if you must, but keep the Bitcoin."

, the outflow streak in spot ETFs began even earlier than that in Bitcoin spot ETFs, with the products being net sellers since May 11, 2026.

The most recent leg of BTC’s selloff towards $60K (more than 50% below its all-time high), has had its clearest impact in crypto options markets. 

At-the-money implied volatility, a forward-looking view of the volatility traders expect, has nearly doubled from 28%, the year-to-date low it traded at only last week, to 60%. 

DECODE: An inverted term structure of volatility means short-dated options trade with a higher implied volatility than longer-dated contracts. 

In other words, the risk premium priced in by BTC options has quickly moved from its lowest level all year, to now signaling elevated demand for downside protection in the near-term.

That same term structure inversion can also be seen in ETH, where short-dated IV has jumped from a YTD low of 36% to 67%.

The jump higher in implied volatility has also been accompanied by an aggressive skew in favor of out-of-the-money put options. 

Put-call skew for 7-day BTC and ETH options is currently trading around -14% and -12%, a sharp move from the -3% and -4% level in late May – a clear sign of demand from traders to pay much higher premiums for downside protection. 

That increased demand for put options is not just limited to short-dated options either, rather in line with the drop in spot price, put-call skew has increased in favor of puts across maturities: 7-, 14-, 30-, and 90-day.

DISCLAIMER:This article is provided for general information and reflects the author’s views only. It does not constitute investment advice, nor an offer or solicitation to buy or sell any financial instruments or digital assets. Your ability to access or use any products or services mentioned may be subject to the laws and regulatory requirements of your jurisdiction.

Advanced

Bybit Learn weekly Banner 2.png

Crypto-Stocks divergence began prior to this week's selloff

 is currently trading below the psychologically-important $70,000 level.

 is posting its lowest prices since April 7th (nearly 2 months ago), and is down 2.2% so far today.

Yesterday, it fell 3.1% - its biggest one-day drop in over 2 months (since March 27th's 4.3% drop).

Prior to yesterday, BTC had been testing support around its 50-day simple moving average (SMA).

ICYMI: We also initially flagged Bitcoin's drop yesterday (Mon, June 1), on 

 (formerly known as MicroStrategy) is the world's largest corporate Bitcoin holder.

Yesterday (Mon, June 1), Strategy disclosed that it sold about 32 BTC, worth some US$2.5 million last week.

This marked Strategy's first BTC sale since 2022!

To be clear, Strategy's Chairman and Co-founder, 

 had already given markets a heads up just a few weeks ago — during the company's most recent earnings call — about a potential BTC sale before end-2026.

The apparent aim is to sell BTC to fund distributions on its preferred stock.

Also, the amount sold last week is tiny compared to its ~$60 billion BTC stash still in hand.

But the symbolism was huge, and the announcement was enough to deliver a psychological dent into crypto sentiment.

Institutional investors are pulling back fast.

, including a single-day exodus of $483.8 million on Monday — with BlackRock's IBIT alone accounting for $440.3 million of that.

May's total ETF outflows hit $2.4 billion, the worst month of 2026.

ETF outflows began a couple of weeks ago, with Strategy's announcement then adding fuel to the selloff.

Furthermore, US stocks punching up to new record highs may be drawing funds away from cryptos.

3) US-Iran tensions adding selling pressure

A potential ramp-up in US-Iran tensions are rattling risk assets broadly.

Yesterday (Mon, June 1), the Tasmin news agency reported that Iran will stop communicating with the US on peace talks. That report sent Brent soaring back briefly to $100/bbl, while shaking risk sentiment.

DECODE: Higher oil prices fuel fears that global inflation will rise faster which may then force major central banks to raise interest rates. Such an environment (higher inflation + higher rates) makes investors less willing to hold speculative assets like crypto.

BTC's latest drop means that the world's biggest crypto is now seeing a technical correction (down over 10% from recent high).

Also, it has erased more than half of the 38% advance it saw during the 3 months between early-Feb through early-May.

This article is provided for general information and reflects the author's views only. It does not constitute investment advice, nor an offer or solicitation to buy or sell any financial instruments or digital assets. Your ability to access or use any products or services mentioned may be subject to the laws and regulatory requirements of your jurisdiction.

June 2 - web banner - Market Pulse.png

Bitcoin sinks below $70k for first time in 2 months! Here's why.

$78,500 Resistance Confirmed. Head & Shoulders Appears.

"No new positions" was equally correct — BTC fell from ~$77,000 to a weekly low of $72,500, then further dropped to $70,688 intraday on Jun 1 (a ~8.5% peak-to-trough decline from $77k). Currently recovering to ~$71,200. Holding through the uncertainty avoided this drawdown.

Price Action (Bybit Data | Updated Jun 2):

III. Technical Picture — Head & Shoulders Appears

The most important technical signal of the week.

 A Head & Shoulders is a signal, not a guarantee. We highlight it to 

, not to declare an inevitable outcome. There are many possible paths from here, and we are not aggressively bearish.

The key question: can $74,000 be reclaimed?

4.1 The U.S. Equity Vacuum — Capital's Structural Repricing

The most notable macro observation this week is not how much BTC fell — it's 

why equities kept rising while BTC was falling.

U.S. stocks continued to strengthen, largely immune to war headlines. The logic:

4.2 ⚠️ U.S. Equity Options Alert: Bullish Sentiment at Historic Extremes, Long-on-Long Squeeze Risk Building

This is the most important market observation of the week, with direct implications for crypto's downside transmission risk.

The chart above (source:Citadel) shows the S&P 500's ‘calls as % tape’ vs. ‘Puts as % tape’ since 2022. The current reading has reached a historically extreme level at the far right of the chart.

When large call option positions are forcibly closed during a market reversal, market makers must sell the underlying asset to maintain delta-neutral hedging — creating a 

 that mechanically amplifies the sell-off. Wells Fargo notes that the market's "sweetener effect" has largely been exhausted, and the risk of "slowing growth combined with rising inflation" is increasing — described as the most unfavorable macro environment for equities.

. But the conditions are fully in place: extreme positioning (Call/Put = 7:3), Goldman and Wells Fargo both flagging it simultaneously, CTAs at max long. Any unexpected negative catalyst — weaker-than-expected NFP, geopolitical shock, surprise hawkish Fed signal — could trigger the unwind.

VI. Strategy: Buy June BTC Put Options — Low-Cost Tail-Risk Hedge

Why buying Puts right now makes sense — in plain language: Vol is cheap (DVOL at historic lows) + downside risk is real (H&S pattern + equity warning + ETF outflows) = buying insurance right now offers the best value it has in months.

Recommended Structure: BTC June Monthly Put Options

Altcoins

Blockchain

Crypto

DeFi

GameFi

Indicators

Investing

Artificial Intelligence

Metaverse

Memes

Options

Stablecoin

Staking

Strategies

Trading

Web 3.0

Web3 Experts

Live ICYMI

Fiat Money

Crypto Insights

Crypto Insights

Bybit Options Weekly Review: Jun 2–Jun 8

Crypto Insights

5 June 2026: What's New in DeFi?

Market Pulse

Cryptos this week: BTC, ETH crash; TRON hits downside target; HYPE hits new record high!

Crypto Insights

Crypto-Stocks divergence began prior to this week's selloff

Market Pulse

Bitcoin sinks below $70k for first time in 2 months! Here's why.

Crypto Insights

Bybit Options Weekly Review: May 26–Jun 2

Crypto Insights

Bybit Options Weekly Review: May 19–May 25

Crypto Insights

22 May 2026: What's New in DeFi?

Crypto Insights

BTC and ETH options trade close to their lowest levels all year

Market Pulse

SEC may unveil plan for tokenized stocks this week!

Crypto Insights

Bybit Options Weekly Review: May 12–May 18

Crypto Insights

15 May 2026: What's New in DeFi?