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Tuesday, November 30, 2021
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Crypto Bulls Signal Maturing Markets

#crypto #market #volatility #bitcoin

$BTCUSD $ETHUSD $GBITS

“Bitcoin’s 2 Bull runs in Y 2021 have differed from those in past years, as the Key distinction is decreased volatility” — Paul Ebeling

The volatility metric, which shows the cryptocurrency’s expected price swings, did not spike when bitcoin’s price marked record highs in April and then in October, indicating that bitcoin is evolving into a more mature investment asset.

The recent realized volatility has been moving lower as bitcoin becomes more mature.

As CoinDesk reported, buying IV (implied volatility) is 1 of the lesser-known uses for options trading, which is a bet on whether price swings will increase or decrease. Traders buy options (call/put) when volatility is relatively cheap and sell when it is high. Options trading is subdued in here.

Data shows that except for a trading volume spike on 15 October’s excitement over the debut of the 1st US bitcoin futures-based ETF, bitcoin options volume remained relatively low in October even when bitcoin marked an all-time high on 20 October.

The speculative trading interest appears to have shifted to ether, the 2nd largest cryptocurrency by market capitalization.

Ether’s 3-month implied volatility and its options trading volume have both elevated in recent days, as the cryptocurrency broke to record highs Tuesday as did GBITS.

Ethereum and Alternatives, Gaming Tokens Outperform BTC.

Have a prosperous day, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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