“Hi Bitcoin, do something!”
The viral meme – with a stick figure that sticks the ground and depicts a need for reaction – can just summarize the current scene on digital assets that deal with desks in the slow, early summer days.
Sure, Bitcoin
Just hit new fresh heights and still shop over $ 100,000, but P&L falls daily for short -term volatility chasers.
“Bitcoin’s volatility has continued to trend lower, both in realized and implied measures, even when the asset reaches new highest times. This decrease in volatility is particularly remarkable in the midst of historically high price levels,” said new research in a recent note shared with Coindesk.
And despite the macro and geopolitical headwinds that hit traditional assets hard, Bitcoin has gone into a cool summer mood.
“With the market that is now entering the typically more quiet summer months, this downward trend may well continue in the short term,” added newly.
Of course, this may be a positive trend for Bitcoin as it depicts a more matured market and potentially speaks to its original promise of “store with value” when the price reaches fresh new heights.
However, dealers love volatility, the greater the movement, the greater the P&L options. While fresh record highs can be good for long -term hodlers, for short -term dealers, these juicy breakouts become difficult to make money.
Why the calm?
So what drives these quiet price actions?
Newly chalk it up to increased demand from Bitcoin Treasury companies that appear to emerge everywhere, and an increase in sophisticated trading strategies, such as overwriting options, as well as other forms of volatility sales.
The market becomes more professional and unless we see some real black swan events (FTX, someone?) For crypto, prices will continue to remain calm.
The opportunity
But everything is not lost – there are always opportunities to make money, even when it is not as lucrative as it seems.
“The decrease in volatility has made both upward exposure through calls and downward protection via sets relatively cheap,” said Nydig.
Translation: Hedging and catalyst -driven acting is where the money can be in this market. If you think something big is coming, it might be time to place with directional bets. And there are a few big ones coming.
“For dealers who expect market-moving catalysts, such as SEC’s decision on GDLC conversion (July 2), the conclusion of the 90-day Customs (July 8) or Crypto Working Group’s Fund deadline (July 22), this presents a cost-effective opportunity to place directional movements.”
So Bitcoin’s Summer Lull may not be a total dead zone; Rather, it is a setup for those who are willing to play patience games and hedge in accordance with trade -potential market movement events.
