Bitcoin ETF

Bitcoin

In the past seven days, the overall cryptocurrency market has experienced low volatility due to two key factors: first, the potential approval of a spot Bitcoin ETF, and second, the recent resignation of the <a href="https://news.todayq.com/binance-czs-settlement-exit-good-for-crypto/" rel="noopener noreferrer nofollow">Binance CEO</a>. This news has prompted investors to contemplate, resulting in observed low volatility over the last week. Bitcoin volatility analysis: Insights from Deribit 
According to recent data from Deribit Insight, Bitcoin’s current volatility, compared to the VIX, is 30% higher than the 2023 average, indicating potential upcoming stability. This suggests a decline in Bitcoin volatility. For a positive outlook, consider call spreads to maintain a neutral vega exposure.
ETF doubts suggest declining Bitcoin volatility.Current BTC volatility to VIX ratio at 3.4x (30% above 2023 avg), signals impending decrease.In a bullish stance, opt for call spreads for neutral vega exposure.Read more ⬇
However, Bitcoin’s volatility has contributed to the downtrend seen in the S&amp;P 500’s VIX index, remaining notably high. Traders may be hesitant due to the looming possibility of SEC approval for a Bitcoin spot ETF.
Also Read: <a href="https://news.todayq.com/bitcoin-etf-approval-set-to-move-crypto-options-market/" rel="noopener noreferrer nofollow">Bitcoin ETF set to move Crypto options market</a> Bitcoin trading opportunities amidst uncertainty 
Despite the current uncertainty, high Bitcoin volatility presents an attractive entry point for traders. At-the-money implied Bitcoin option volatility for December expiry is at 46%, slightly above the 30-day realized volatility of 43%. The Bitcoin volatility to VIX ratio, standing at 3.4x, is 30% higher than the 2023 average, suggesting potential overpricing. Source: Deribit Insights 
To control this scenario, traders could hedge Bitcoin exposure with SP500 put options, given the 58% correlation coefficient over 30 days. Selling Bitcoin options might be a viable strategy, considering the perceived overpricing based on general market risk, as per Deribit Insight.
While not all traders operate across markets, the current volatility spread ratio between Bitcoin and SP500 is at a two-year high, indicating a likely decline in Bitcoin volatility.
If we observe, last week’s expectation of Bitcoin breaking the $38,000 resistance level briefly came true, but insufficient upside momentum led it back into the $35,000 to $38,000 range, and currently trading near $37,150.&nbsp;
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Bitcoin volatility decline amid potential BTC ETF approval, Bull run incoming?

Todayq News

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