The final S&P Global Services PMI for the US in February recorded at 52.3, higher than the expected 51.4 and the previous value of 51.3, indicating slight signs of rising price pressures. Subsequently, the February ISM Services PMI index was lower than expected, leading to U.S. Treasury yields starting higher but closing lower, with the current two-year/ten-year yields at 4.566% /4.166% respectively. All three major US stock indices fell by more than 1%.

Source: SignalPlus, Economic Calendar
Source: Binance & TradingView

In the realm of digital currency, Bitcoin saw a significant drop of over 10% after breaking its all-time high, at one point falling below $60,000. It has now recovered most of its losses and is back around $66,000. As of now, the amount of liquidated long/short positions for the day has reached $218 million/$96.78 million. Analysts note that Bitcoin’s nearly straight-line increase in the past few days made a bit of profit-taking expected. Moreover, some traders adopted a “one-time profit-taking” mindset, leading to quick sell pressure at the all-time highs. This suggests that the sell-off was not a panic but a rational response, though it has led to increased expectations of short-term price volatility, with front-end implied volatility rates for options rising by 3 to 5%. ETH saw an even larger increase of 10% in volatility, further widening its gap with BTC. In terms of trading, this pullback attracted positions in bearish options, including flows into BTC 8 MAR-62000-P and ETH 29 MAR 3500/3400-P. On the other hand, during the price rebound, the volume of bullish strategies purchased on large platforms remained active, reflecting optimism for further upward potential in the market.

Source: Deribit (As of 6 MAR 08: 00 UTC)
Source: SignalPlus, Short-term implied volatility levels rise again.
Data Source: Deribit, BTC transaction distribution
Data Source: Deribit, ETH transaction distribution
Source: Deribit Block Trade
Source: Deribit Block Trade

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