Bitcoin slides below $96,000 as key crypto bill stalls in Congress

The stall of the crypto bill could increase uncertainty and volatility in the market, potentially leading to higher funding rates on short positions if traders expect further price declines. Delta-neutral traders should monitor funding rates closely and adjust their positions accordingly to capitalize on arbitrage opportunities or mitigate risks. Increased volatility can also impact the effectiveness of short-term delta-neutral strategies.

The failure of the crypto bill to progress suggests regulatory headwinds are still present, potentially limiting institutional investment in the short term. This may lead to continued downward pressure on Bitcoin and other cryptocurrencies. Delta-neutral traders should consider employing strategies that profit from increased volatility, such as straddles or strangles, while carefully managing risk. Monitoring regulatory developments remains crucial for anticipating future market movements.