QCP Capital has shed light on the overnight macro trigger that led to a notable sell-off in all risk assets, Iran’s threat of retaliation against Israel. This geopolitical tension reverberated throughout the market, sparking a wave of uncertainty and prompting investors to offload their riskier assets. Furthermore, the downside skew in ETH risk reversal serves as an early warning sign, revealing the market’s sensitivity to crypto market anxiety. The sudden and steep drop in the values of BTC and ETH, coupled with altcoins selling off by as much as 20-30% overnight, underscores the severity of the market reaction. Moreover, negative perpetual (perp) funding rates, soaring to over -40%, depict a market in distress. This deep plunge in perp funding rates, the most significant recorded this year, indicates a heightened level of fear and uncertainty among investors. Additionally, the forward curve now resting below 10% further accentuates the market’s bearish sentiment. Despite the impe