Bitget App
Trade smarter
Open
HomepageSign up
Bitget>
News>
Bitcoin options positioning anticipates summer slowdown, analyst says

Bitcoin options positioning anticipates summer slowdown, analyst says

The Block2024/05/02 10:04
By: Brian McGleenon
BTC+2.13%ATM+1.19%
Bitcoin derivatives traders are bracing for a summer slowdown in market activity, according to an analyst.
Bitcoin options positioning anticipates summer slowdown, analyst says image 0

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.


Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Trending news

More
1
Crypto Prepares for Volatility Storm as CPI Data and Fed Meeting Loom
2
The New York State Assembly introduced Bill 9138, which proposes to tax PoW cryptocurrency mining companies based on electricity consumption.

Crypto prices

More
Bitcoin
Bitcoin
BTC
$111,018.64
+2.81%
Ethereum
Ethereum
ETH
$4,033.09
+1.73%
Tether USDt
Tether USDt
USDT
$1
-0.01%
BNB
BNB
BNB
$1,107.77
-0.09%
XRP
XRP
XRP
$2.46
+2.52%
Solana
Solana
SOL
$192.12
+1.01%
USDC
USDC
USDC
$0.9999
+0.01%
TRON
TRON
TRX
$0.3229
+1.25%
Dogecoin
Dogecoin
DOGE
$0.2013
+2.29%
Cardano
Cardano
ADA
$0.6669
+2.39%
How to sell PI
Bitget lists PI – Buy or sell PI quickly on Bitget!
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new users!
Sign up now
Trade smarter