According to BlockBeats, QCP released its daily market watch saying that as expected, we saw typical volatility selling after the quarter-end expiration, with volatility falling 2-3 fluctuation points since the record options expiration last Friday.
Despite BTC consolidating near the bottom of its 1-month range and having mediocre returns this month, BTC and ETH had decent performances in Q4: BTC is up 48% and ETH is up 30%. However, it may be too early to draw conclusions about the quarter.
While there may be another round of buying, we do not expect much in the New Year, especially with healthy funding. Average returns in January (+3.3%) were relatively similar to December (+4.8%), and we expect spot prices to remain in this range in the short term until February starts to see some improvement.
Options flows reflected similar sentiment, with front-end volatility gradually declining and risk reversals mainly driven by stronger demand for March calls, partly due to large buying of March options last Friday.
