The short strangle option strategy is a limited profit, unlimited risk strategy that can be played when an options trader thinks that the underlying price will experience little volatility in the. Bitcoin traders expect a significant increase in volatility as the leading cryptocurrency continues to recoup nearly all its losses since topping out just below $20, in late Whether the. Dec 17, · Mike Novogratz, the billionaire Bitcoin investor, is wagering on volatility, a market that’s still scarred from the Covid crash earlier this year. Novogratz, 56, is among the backers of Millbank.
Trading bitcoin volatilityBitcoin (BTC), Ripple (XRP) Stemming Heavy Losses as Volatility Returns
Since late August, day volatility has remained below 0. As bitcoin closes in on the much-anticipated all-time-high mark, some responsive selling should be expected, said Mike McGlone, senior commodity strategist for Bloomberg Intelligence, in an email to CoinDesk.
Not since early December were there this many addresses in profit on paper. The previous all-time high represents a significant inflection point in mainstream interest for bitcoin, said Kyle Davies, co-founder of Three Arrows Capital, in a direct message with CoinDesk.
At that point, he expects mainstream interest to accelerate. But mainstream attention should trigger significant upside volatility, not downward, according to Davies. Bitcoin day and day volatility in Why does on-chain volume dominance frequently precede large price movements?
These movements are reflected in on-chain transactions but not exchange volume as represented in this ratio, explains Jean Baptiste Pavageau, partner at Paris-based quantitative trading firm ExoAlpha. As a predictive tool, however, the volume ratio measure is imperfect, and some traders are skeptical that this volume ratio — or any market analysis — is useful for timing changes in volatility and price trends.
Bitcoin price charted above the on-chain-to-exchange volume ratio since October Subscribe to Blockchain Bites , our daily update with the latest stories. Read more about Disclosure The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.
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