Back to Volatility: Traders Return as Bitcoin Leads
The latest episode of The House View examines how volatility is returning to crypto markets and what institutional traders are doing in response.
Colin Farrell, Senior Manager of Institutional Coverage, sits down with Sebastian Cohen, Head of Spot Trading, to discuss the desk’s perspective as geopolitical developments drive traders back into the market.
Key takeaways:
- Bitcoin leading the recovery: As volatility returns, sidelined capital often re-enters through Bitcoin first. CME open interest recently increased by roughly $1.5B overnight, signaling renewed activity across traditional derivatives venues.
- Client positioning shifting: Following a wave of de-risking earlier in the month, the FalconX desk is seeing renewed positioning across majors and select DeFi tokens, including infrastructure plays like Hyperliquid and AAVE.
- 24/7 markets gaining relevance: Platforms such as Hyperliquid are gaining traction as traders increasingly seek venues that allow hedging and trading around the clock, particularly during macro events that unfold outside traditional market hours.
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