Bitget App
Trade smarter
Buy cryptoMarketsTradeCopyBotsEarnWeb3

Bitcoin options positioning anticipates summer slowdown, analyst says

The BlockThe Block2024/05/02 10:04
By:Brian McGleenon

Bitcoin derivatives traders are bracing for a summer slowdown in market activity, according to an analyst.

Bitcoin BTC +1.62% derivatives traders are positioning themselves for a summer lull in market activity, according to an analyst.

"Summers are usually low volatility periods, and traders are starting to position accordingly based on their bias," Bitfinex Head of Derivatives Jag Kooner told The Block.

According to Kooner, bitcoin implied volatility has dropped significantly since mid-April. This can also be seen in charts from The Block's Data Dashboard , which show the implied volatility of bitcoin at-the-money options falling from over 77% to under 60% for one week, one month and multi-month expires.

The implied volatility of ether ATM options has decreased to a similar extent as that of bitcoin IV since mid-April.

RELATED INDICES

See crypto indices

According to Cube.Exchange CEO Bartosz Lipiński, the ebbing of ether IV is a sign that traders expect price swings to calm a bit as they await clarity on ether’s regulatory situation in the U.S. "Typically, when there is uncertainty, traders will go risk-off to cash and sit on the sidelines, and it would not surprise me if a similar situation is occurring with ether," Lipiński told The Block.

The Cube.Exchange CEO added that due to the uncertainty surrounding ether's status in the U.S. — whether it is deemed a security or not — many traders are likely to either remain on the sidelines or explore opportunities elsewhere until the situation is clarified.

However, Lipiński stressed that in the summer, when trading volumes are lower, volatility can increase due to liquidity gaps in the market. "Summer can be a relatively quiet period, it often is in equities markets, but one only needs to look at 2017, DeFi summer, and the last major bull run to see the impacts of lower liquidity on relatively bullish crypto markets," he added.


0

Disclaimer: everything in the article represents the author's point of view and has nothing to do with this platform. This article is not intended to be used as a reference for making investment decisions.

You may also like

The U.S. Bitcoin ETF had a net inflow of $257 million yesterday

Bitget2024/05/17 03:23

Market dynamics on May 17: Chainlink collaborates with JP Morgan, LINK rises 13.6% in 24 hours

Bitget2024/05/17 02:40

The Bitcoin ETF IBIT saw a net inflow of 94 million US dollars on May

Bitget2024/05/16 23:18

Bitcoin Bull is Back: Why BTC’s 7% Jump Is Just the Beginning

Dailycoin2024/05/16 19:43

‌Spot copy trading

More
AIOnline
AIOnline
insight1000/1000
8832.43%
ROI
Total profit $45045.39
WhaleGo_YouTube
WhaleGo_YouTube
insight500/500
1217.37%
ROI
Total profit $3534.78

Bot copy trading

More
BGUSER-FFF8CNJ4
BGUSER-FFF8CNJ4
insight6/150
$5604.89
Total profit
Total subscriber profits $-78.78
caggen
caggen
insight6/150
$948.99
Total profit
Total subscriber profits $-884.82